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   How does StarMine measure analysts on estimate accuracy?
 
   StarMine's database includes information on every estimate and revision recorded by Thomson Reuters and is always current through the previous day's market close.

StarMine's analysis begins at the level of a single stock with our Single-stock Estimate Score ("SES"). SES is a relative measure; it compares an analyst's performance with that of his or her peers on a single stock. SES ranges from 0 to 100, with 50 representing average performance. To get a score higher than 50, an analyst must make estimates that are both significantly different from, and more accurate than, other analysts' estimates.

SES takes into account many factors including the security's actual earnings (once it is reported), the analyst's absolute forecast error, the analyst's forecast error compared to the forecast errors of other analysts, and the variance of the forecast errors. StarMine computes SES daily for every analyst, on every stock that he or she covers with estimates.

StarMine converts a Single-stock Estimate Score into a Single-stock Estimate Rating by awarding the top 10% of analysts 5 stars, the next 23% 4 stars, the next 35% 3 stars, the next 23% 2 stars, and the lowest 10% 1 star.

SES has proven to be highly predictive of future analyst performance. For an example of SES for a 5-star analyst, please see Example of an analyst winning 5 stars


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