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Yahoo Finance Five-Year Growth Estimates Use Analyst Consensus

Article Quant Q&A · Author: Stat
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Summary

The document asks how Yahoo Finance produces a stock’s annualized growth estimate for the coming five years. The answer says the figure comes from Refinitiv’s Institutional Brokers’ Estimate System, a database of analyst forecasts. It describes the displayed value as the mean of estimates submitted by analysts who cover the company and report to that system.

This offers a concise explanation of the estimate’s source and aggregation method: it is analyst consensus data rather than a growth rate calculated solely from a price series or an individual investor’s model. The excerpt gives no details about analyst inclusion rules, forecast updates, outlier handling, or how the underlying growth metric is defined. It also does not establish the accuracy of the consensus or explain how it should be used in a valuation or trading strategy, so the answer is best treated as provenance information about a third-party estimate.

Key ideas

  • The five-year growth figure shown by Yahoo Finance is attributed to Refinitiv’s analyst estimate database.
  • The answer characterizes the reported figure as an average of estimates from covering analysts who report to the system.
  • The document does not describe forecast filtering, update frequency, or the estimate’s predictive accuracy.

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EquitiesUS marketsStatistics
Full text
# How does yahoo calculate Growth Estimates


# How does yahoo calculate Growth Estimates












Does anyone know how yahoo calculates Growth Estimates for the Next 5 Years (per annum)? For example, I can see 12.64% for AAPL as reporetd in Yahoo finance in https://finance.yahoo.com/quote/AAPL/analysis?p=AAPL.

## Answer by user15745325 (score 5)

https://quant.stackexchange.com/a/63539

5 year forward estimates comes from Refinitiv IBES (Institutional Broker Estimate System). It will be the mean estimate from all the analyst that cover the stock that report into IBES. It’s used industry wide.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.