Forecasting uses historical data as inputs to make informed predictive estimates determining the direction of future trends. Price, revenue & earnings forecasts represent where the stock level, business prospects and profits are potentially expected to be at the end of the forecast period.
Under the Forecast Heading, there are three different segments
- Price forecast
- Revenue forecast
- Earnings per share forecast.
This Value presents the price estimates for the upcoming financial year. This helps the investor in anticipating an expected Profit or Loss based on the current price of the stock. This value is calculated by multiplying and summing the potential outcomes by their probabilities. The graphical representation of growth and decline of the price is also given under this section.
Revenue refers to the amount of money that a company earns by selling their product/ service during a specific period of time. Different Sectors have distinct channels of revenue. This helps the investor in ascertaining the progress and momentum of a particular company.
Earning Per Share (EPS) Forecast
This value indicates the portion of company's profit that is allocated for each outstanding share. The forecast for earnings per share gives the user an outlook on the company's direction. Earnings per share is calculated as net income divided by total common shares. Companies that show a growth in earnings per share year after year are desirable.