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Consensus rating

The estimates of a stock can be expressed in terms of consensus rating. An average can be taken from the different estimates made by different analysts on a specific stock. This is often known as consensus estimate. To make it clearer, if the analysts are estimating the earnings of a company for the approaching year in terms of per share value as $3, $3.20, $2.70 and then consensus rating will be the simple average obtained as $2.97. The earning calculated this way per share can influence the market value of the share.


Consensus rating can be built using the Listing Picker page. The bids of lenders who have high estimated ROIs chiefly participate in the estimation of the consensus rating. The listings bid by the above said lenders are identified to evaluate the consensus rating. If there is huge number of lenders with beautiful value for ROI, the consensus rating will be high.

The method of evaluating the consensus rating using the device is not that advisable. The methods used by different brokers can be different for rating. Then there ought to be a single entity for evaluating the ratings. The I/B/E/S standard is used for getting a better recommendation. The recommendation received from the analysts is mapped to this standard of rating. The standard will calculate a consensus rating value through a numeric value assigned to the broker text. This consensus rating will be the average of the values given by all analysts.

They can compare the methods used to evaluate the on the job performance using tools. The mechanically derived method and the conservative method of using conservative method to rate the job performance won't discover a great difference. Both these methods came with sure results and it was shown that both the results never showed a great variation. The percentage of impact as shown from the results appeared to be identical.

Consensus rating is made on a single entity. The standard used for making the evaluations from different brokers standardized to a common factor is the I/B/E/S standard. Here a numeric value is being assigned to strong buy, buy, hold, underperform and sell. Every financial site will have consensus rating. The average of the values is taken based on the financial consideration and information to make the consensus rating.

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MUTUAL FUNDS INVESTMENTS

Mutual funds are perhaps one of the best investment tools available in India. Vast variety and endless options give consumes a lot of choice. People should keep in mind that Mutual funds are a long term investments. Consumer should also understand that markets will be for always and so shall be mutual funds hence they shall exercise to exit or shift from equity to debit when the markets reach 24 PE and wait for reinvestments at 10 PE

Disclaimer :- Investments in mutual funds always has certain risk involved - kindly read all documents and consult a certified financial advisor before investment.

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