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Consensus Rating




The average of analysts recommendations for a single entity. As many brokers have different ratings systems, their recommendations must be standardized so that a consensus can be calculated. The I/B/E/S ratings are calculated using a standard set of recommendations, maintained by I/B/E/S, each with an assigned numeric value:

1. Strong Buy
2. Buy
3. Hold
4. Underperform
5. Sell



Additional Comments:

Each recommendation received from the analysts is mapped to one of the I/B/E/S standard ratings. Assigning a numeric value to the broker text enables I/B/E/S to calculate a consensus recommendation. This consensus recommendation appears as the mean (average) of the assigned values.

Related Terms:

Analyst
A person with expertise in evaluating financial investments; he or she performs investment research and makes ...

Bollinger Bands
Bollinger Bands are a type of envelope (or trading band) plotted at standard deviation levels above ...

Hold
To maintain ownership of a security over a long period of time. The recommendation of an ...





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