This study demonstrates that in using security forecasts for equity valuation, it would be preferable to take into consideration of analyst multi-year forecasts instead of exclusively employing current-year earnings forecast because the latter forecast measure most typically incorporates non-recurring and/or value-irrelevant components of accounting earnings. In contrast, the same analyst's concurrent long-term earnings estimates appear to be free from the influence of the non-recurring earnings items. Namely, when a firm's long-run profitability differs from current year earnings, long-horizoned analyst forecasts add to identify the differences.
|頁（從 - 到）||714-723|
|期刊||International Review of Finance|
|出版狀態||已出版 - 6月 2021|