Expectations and the Structure of Share Prices
John G. Cragg and Burton G. Malkiel collected detailed forecasts of professional investors concerning the growth of 175 companies and use this information to examine the impact of such forecasts on the market evaluations of the companies and to test and extend traditional models of how stock market values are determined.
1. Nature and Sources of Data
2. Consensus, Accuracy, and Completeness of the Earnings Growth Forecasts
3. Valuation Models and Earnings Growth
4. Empirical Connection of the Growth Forecasts with Share-Valuation Models