Market expectations

Hi John,

Great question, one that has probably crossed other subscribers minds over the years – we’ve often thought the same around political polling!

• The term consensus or market expectations refer to the aggregation of analyst forecasts that feed into data vendors such as Bloomberg or LSEG who aggregate these forecasts and consensus becomes the average of all these inputs. i.e. Analyst a) believes XYZ will earn $100 per share, Analyst b) thinks it will be $75, and Analyst c) thinks it will be $50. The consensus then becomes earnings per share of $75 (the average of the 3).  The same would apply to consensus price targets.
• The first port of call to see this is the Market Matters website, let’s consider say BHP. On the over page you can see broker calls and consensus target forecasts. Then on the Forecasts page subscribers can then see projections for 2025 & 2026 for revenue, net income, dividends etc. This data is sourced from LSEG and costs around $12000 per month to populate on the site.
• We then pay for another level of detail through Bloomberg which enables us to bore down into far more granular forecasts from all of the analysts that cover certain stocks – we often use these in our reports.

We hope that helps with the next 40-years of your investing!

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BHP Consensus Earnings Forecasts – Market Matters Website

LAST UPDATED 01/03/2025 00:22

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BHP Consensus Earnings Forecasts – Market Matters Website

LAST UPDATED 01/03/2025 00:22