The consensus estimate is a financial term that refers to an average forecast or prediction made by analysts, investors and other market participants about a company's future performance. This includes estimates for earnings per share (EPS), revenue growth, and other key metrics.
Analysts from various firms will provide their own individual predictions, which are then compiled into an overall average estimate. The consensus estimate is widely followed by investors as it provides a general sense of market expectations about the company's performance. It can also be used to compare companies within the same industry or sector.
In summary, the consensus estimate is a useful tool for investors and analysts alike in making informed decisions about stocks and other financial instruments.