Hiya. I'm trying to compare some companies I'm interested in, but I'm not sure how to view the analysts' estimates. I got some info from zack's over at msn.com, and I'm wondering if estimated growth rates are based only on products/services that are currently marketable. In other words, how do analysts factor in all the stuff that these companies are working on that may or may not boost the growth rate?
Hi Daniele7,That's a tough one. The analyst's estimates are supposed to include the best estimate of the impacts from items that are "in the pipeline". However, with the exception of some pharmaceutical companies, I have never seen a good description of how they were factored into the estimate.I suppose that if you know of a particualr development that you are interested in, you could attempt to develop your own estiamtes for earnings' one with your anticpated impact and one without. You could then compare your estimates with the analysts estimates to determine if the analysts estimate includes the item(s) that you are interested in.
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