consensus estimate

consensus estimate definition - business

consensus estimate

The average of multiple analyst earnings estimates for a particular stock. For example, if three analysts estimate next year's earnings per share for a company at $3.00, $3.20, and $2.70, the consensus estimate is ($3.00 + $3.20 + $2.70)/3 , or $2.97. Reporting earnings per share different from the consensus estimate is likely to affect the stock's market price.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.