I am always curious as to how people on wall street forecast every single item on a company's balance out up to 3 years. It seems to me just pure false accuracy in order to come up with a price target.

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    $\begingroup$ The cynical answer is that this is correct and that analysts are just paid to come up with consensus answers that help sell the broader range of products a bank has to offer. The other side here is that there is a lot of predictability in the operations of large(r) companies, who receive most coverage. Combining that with qualitative information based on management plans etc, coming up with reasonable numbers is not that hard for most circumstances (e.g. ignoring market crashes) $\endgroup$
    – Bram
    Oct 24 '17 at 19:04
  • $\begingroup$ @Bram I am just curious if they want to do so, where do they start? Income statement/balance sheet/cashflow? I am just too new to the game. My guess is that they start from income statement, form top line revenue all the way down to net income. $\endgroup$
    – zsljulius
    Oct 25 '17 at 2:31

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