Financial analysts were only wrong by 25%

Over the past decade, financial analysts worldwide have produced company earnings forecasts that were wrong by an optimistic excess of 25%.

This paper is a descriptive review of analyst performance at providing company earnings forecast for all listed companies in the world. The universe is 74% comprised of developed market companies while the balance is made up from emerging countries. The average company size is US$5,541m.

Summary

  • Published: December 11, 2015

    Andrew Stotz

    University of Science and Technology of China (USTC) - School of Management

    Wei Lu

    University of Science and Technology of China (USTC) - School of Management

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