/analyst-estimates

name: analyst-estimates
description: Retrieve analyst financial estimates including Revenue and EPS projections with low/high ranges and analyst coverage. Use when analyzing forward expectations, consensus estimates, valuation inputs, or comparing projections to historical performance.

Analyst Estimates

Retrieve analyst financial estimates for public companies using Octagon MCP.

Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See [references/mcp-setup.md](references/mcp-setup.md) for installation instructions.

Query Format

Retrieve analyst financial estimates for <TICKER> for the annual period, limited to <N> records on page 0.

**MCP Call:**

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve analyst financial estimates for AAPL for the annual period, limited to 10 records on page 0"
  }
}

Output Format

The agent returns a table with analyst estimates across future periods:

| Fiscal Year Ending | Revenue Estimate (Low to High) | Revenue Avg | EPS Estimate (Low to High) | EPS Avg | # Revenue Analysts | # EPS Analysts | |-------------------|-------------------------------|-------------|---------------------------|---------|-------------------|----------------| | 2030-09-27 | $540.64B - $600.88B | $566.24B | $12.01 - $13.78 | $12.77 | 9 | 6 | | 2029-09-27 | $520.95B - $578.99B | $545.62B | $10.62 - $12.17 | $11.28 | 13 | 6 | | 2028-09-27 | $515.19B - $520.48B | $517.84B | $8.96 - $11.18 | $10.20 | 18 | 15 | | 2027-09-27 | $474.27B - $531.94B | $490.97B | $8.41 - $9.77 | $9.23 | 31 | 30 | | 2026-09-27 | $445.03B - $483.54B | $460.35B | $7.84 - $8.92 | $8.42 | 24 | 29 |

**Data Source:** octagon-financials-agent

Key Observations Pattern

After receiving data, generate observations:

1. **Growth trajectory**: Calculate implied revenue and EPS CAGR 2. **Estimate dispersion**: Analyze spread between low and high estimates 3. **Analyst coverage**: Note number of analysts covering each period 4. **Near vs far-term**: Compare confidence in near-term vs long-term estimates 5. **Historical comparison**: Compare estimates to actual historical performance

Metrics Reference

| Metric | Definition | |--------|------------| | Revenue Estimate (Low to High) | Range of analyst revenue projections | | Revenue Avg | Consensus average revenue estimate | | EPS Estimate (Low to High) | Range of analyst EPS projections | | EPS Avg | Consensus average EPS estimate | | # Revenue Analysts | Number of analysts providing revenue estimates | | # EPS Analysts | Number of analysts providing EPS estimates |

Analysis Tips

Implied Growth Rate

Implied CAGR = (Future Estimate / Current)^(1/Years) - 1

Example: ($566B / $416B)^(1/5) - 1 = 6.4% revenue CAGR

Estimate Dispersion

Dispersion = (High - Low) / Average × 100

• Narrow dispersion (<10%) = High consensus
• Wide dispersion (>20%) = Significant uncertainty

Analyst Coverage Quality

• More analysts = more reliable consensus
• Declining coverage = less institutional interest
• <5 analysts = thin coverage, use caution

Forward P/E Calculation

Forward P/E = Current Price / EPS Estimate

Use for valuation relative to growth expectations.

Estimate Revisions (with follow-up)

Track changes over time:

• Upward revisions = positive momentum
• Downward revisions = negative momentum
• Frequency of revisions matters

Valuation Applications

DCF Inputs

Use estimates for:

• Revenue projections
• Margin assumptions (with historical data)
• Terminal growth rate guidance

Relative Valuation

Compare:

• Forward P/E to historical average
• Forward P/E to peers
• PEG ratio (P/E / Growth rate)

Earnings Surprise Potential

Compare estimates to:

• Management guidance
• Historical beat/miss rate
• Recent operating trends

Confidence Assessment

High Confidence Estimates

• Near-term (1-2 years out)
• Many analysts covering
• Narrow dispersion
• Stable business model

Low Confidence Estimates

• Long-term (5+ years out)
• Few analysts covering
• Wide dispersion
• Rapidly changing industry

Follow-up Queries

Based on results, suggest deeper analysis:

• "What factors are driving the projected revenue growth from [YEAR1] to [YEAR2]?"
• "How do these estimates compare to [COMPANY]'s historical financial performance?"
• "What are the key risks to achieving the upper end of these revenue estimates?"
• "Retrieve analyst price targets and ratings for [TICKER]"