Analysts' target prices imply yields
factor.formula
Analysts' target prices imply yields:
The formula calculates the expected return based on analysts' consensus target price.
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Analyst consensus target price is usually the average or median of target prices given by multiple institutional analysts. It represents analysts' price expectations for the stock over a period of time in the future (usually 12 months).
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The latest stock price is usually the current closing price or the latest transaction price of the stock. It reflects the market's current valuation of the stock.
factor.explanation
The higher the implied yield of the analyst's target price, the higher the potential future return of the stock according to the analyst's expectations. This factor reflects the market's expectations of the stock's future price increase potential. However, analysts' target price forecasts are not absolutely accurate, and their judgments may be affected by factors such as their own research level, information acquisition bias, and emotions. Therefore, this factor should be used as an auxiliary reference and combined with other fundamentals and market information for comprehensive analysis, and should not be used as the only basis for investment.