Estimize injects social into the financial process
Nothing is ever guaranteed in business, but owners and analysts do their best to give the most reliable estimates possible when presenting to investors and other interested parties. On earnings release day, all eyes are on the numbers as investors take in the financial data needed to either continue or halt their contributions. The more accurate the estimate, the more trusted your company is to the investor community, and the more willing they are to invest in your business.
Most of the time, earnings estimates are calculated by analysts on the sell-side of Wall Street. Investment banks and brokerage firms typically provide their own estimates for how they think businesses will perform in a given period, and share those with interested investors.
Estimize, an open financial estimate platform, injects a social element into the estimation process by creating a community that aggregates earnings estimates from analysts, hedge fund and asset managers and other financial professionals. Users input their estimates into the platform, after which the numbers are averaged with projections from others in the community. The intended result: an earnings estimation from a group of financial experts that is consistent with their years of experience in the industry.
Estimize has filters, gives clearer insights
The Estimize platform does have algorithms in place to filter out unreliable data so as not to skew the average estimates, however the tool doesn’t filter out bias completely. Analysts have personal ties with various businesses and the clients they serve, and may project exceedingly low earnings estimates that they know these companies will undoubtedly exceed, thereby giving investors a false sense of confidence.
The aim of the platform is to congregate data from several sought after sources that can give clearer insights into the projected performance of the market, and ultimately become a community where buyers can get the general consensus on stock performance, and make an informed decision on how they would like to proceed for the next few quarters or fiscal year.