How Are Average Rating & Target Price Calculated?

How Are Average Rating & Target Price Calculated?

These metrics are provided by Factset and based on broker recommendations received over the past 100 days. If a broker has issued multiple recommendations during this period, only the most recent is retained.

Broker Ratings Breakdown

Broker ratings fall into five broad categories: 1) Buy 2) Overweight  3) Hold 4) Underweight  5) Sell

Each category is assigned a score between 1 and 3, following a structured evaluation system.

Average rating

Broker ratings are divided into five broad categories: Buy, Overweight, Hold, Underweight, and Sell. Then, a score of between 1 and 3 is attributed to each category according to the table below:

Broker recommendation

Action/Score

Buy/1

Overweight /1.5

Hold/2

Underweight /2.5

Sell /3

The above broker rating contributions are aggregated and averaged according to the table below to determine the Average rating:

Average Score

Average Rating

Average Score <1.25 Buy

1.25 ≤ Average Score < 1.75 Overweight

1.75 ≤ Average Score < 2.25 Hold

2.25 ≤ Average Score < 2.75 Underweight

2.75 ≤ Average Score ≤ 3 Sell

Average rating history shows how it evolved in the last 6 months and an indicator will highlight any upgrade or downgrade in the last 7 days.

Target price Implied return

Target price is the average of brokers’ estimates. Implied return conveys its distance vs the current price.

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