Accuracy of EPS Forecasts of Security Analysts: Taking PROYA as an Example

Abstract

With the development of security analyst industry, its importance is becoming more prominent. However, the development of security analysts in China is relatively late, and there is still a gap between their forecasting accuracy and that of developed countries in the capital market which have accumulated much experience. Therefore, the accuracy of domestic analysts' forecasting is worth considering. At the same time, in China, cosmetics industry has become one of the few consumer industries to accelerate growth in recent years, and has become the focus of more and more investors. This paper examines the accuracy of PROYA's forecasts by calculating the accuracy of 72 analysts from 28 securities firms' forecasts from 2018 to 2021. The results suggest that investors can gain more accurate information through the latest reports of long-following analyst.