Consensus estimate or rating refers to a forecast of a company’s projected earnings. These are based on the estimates of equity analysts who cover the stock. Analysts, a team of analysts, investment companies or big brokerages predict a company’s results, sales, earnings per share (EPS) and other numbers for the quarter, financial year and also give future earnings estimates. Consensus estimate is a summary of all these predictions and it depends on the size of the company as well as the number of analysts covering it. Consensus estimates are based on projections, models, subjective evaluation and predictive research. Analysts use financial statements like balance sheets, income statements or cash flow statements along with their own assessment and interpretation of the company’s available information and numbers.