Fundamental analysis
Consensus estimate
Definition
The average or median of analysts’ forecasts for a figure such as EPS or revenue, compiled by financial data providers.
Example
Say five analysts forecast company XYZ’s quarterly EPS at $1.10, $1.15, $1.20, $1.20 and $1.35. Both the average and the median come to $1.20, so that is the consensus. If the highest forecast had been $1.85 instead of $1.35, the average would jump to $1.30 while the median would stay at $1.20, unmoved by a single outlier.
Hypothetical numbers, for illustration only.
UpTickFlow is our product. These guides are education, not financial advice. Trading involves a substantial risk of loss.