This paper demonstrates a method to forecast stock price using analyst earnings forecasts as essential signals of firm valuation. The demonstrated method is based on the Residual Income Model (RIM), with adjustment for auto-correlation. Over the past decade, the RIM is widely accepted as a...

This paper assesses the performance of securities analysts in forecasting the future earnings of intangible firms. The assessment is relative to extrapolative time-series models of earnings forecasts. The paper's results show that the forecast errors produced by both analysts and extrapolative...