How Do Analysts Do an Earnings Projection?

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So how do analysts arrive at those numbers, projecting companies' profits? 

We're going to walk you through the 'how' in our TheStreet Explains series, and you might even be surprised as to how similar this all is to the way you project your own finances. 

Imagine you get a new job. It pays really nicely. You move into a better apartment. 

Here's some questions you may be asking yourself:

How much are you getting per year?

What's your new tax rate?

What's your annual after-tax income?

How much is the new rent?

What are you left with after rent, health insurance, food yeah month, going out with friends? 

The point is that the way analysts project earnings is similar to the way you project your own earnings. 

Watch the video above to get the full explainer and more.

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