McKinsey on Finance is a quarterly publication written by experts and practitioners in McKinsey and Company's Corporate Finance practice. This publication offers readers insights into value-creating strategies and the translation of those strategies into company performance. McKinsey on Finance articles are available online at www.mckinseyquarterly.com.
May 6th, 2010
Episode 65 of 129 episodes
Executives should note that the capital markets don't expect them to deliver against longer-term analyst growth forecasts. An update of McKinsey analysis confirms that despite rules and regulations intended to improve them, equity analysts are typically still excessively optimistic. Capital markets, on the other hand, are much more reasonable in their expectations.