In forecasting future cash flows and corporate earnings financial analysts often use a topdown approachSummarise the main findings in Model-based earnings forecasts vs financial analysts earnings fore

According to the article, model-based earnings forecasts tend to be more accurate than financial analysts' earnings forecasts, especially in the long term. This is because model-based forecasts rely on objective data and statistical models, while analysts' forecasts can be influenced by subjective factors such as personal biases and company relationships. However, financial analysts may still have an edge in short-term forecasts, as they can incorporate qualitative information and market trends that may not be captured in models. Overall, both approaches have their strengths and limitations, and investors should consider multiple sources of information when making investment decisions