> ## Documentation Index
> Fetch the complete documentation index at: https://docs.benzinga.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Consensus Ratings Explained

> Learn how Benzinga calculates consensus ratings from individual analyst recommendations

## Overview

Consensus ratings provide a consolidated view of analyst sentiment on a stock by aggregating individual analyst ratings into a single, easy-to-understand metric. This guide explains how we calculate consensus ratings to help you make informed investment decisions.

## How Consensus Ratings Are Calculated

### Step 1: Collecting Analyst Ratings

We gather all available analyst ratings for a given stock. Each rating includes:

* **Analyst Name** and **Firm Name**
* **Rating** (e.g., Strong Buy, Buy, Hold, Sell, Strong Sell)
* **Price Target** - The analyst's projected stock price
* **Date Updated** - When the rating was issued

### Step 2: Filtering for Unique Analysts

To ensure accuracy and avoid double-counting, we only include the **most recent rating** from each unique analyst-firm combination.

**Example:** If Morgan Stanley's analyst John Doe has rated a stock multiple times, only their latest rating is included in the calculation.

<Note>
  Ratings without a valid price target are excluded from the analysis.
</Note>

### Step 3: Categorizing Ratings

Analyst ratings are categorized into five standard categories:

| Category        | Numeric Value |
| --------------- | ------------- |
| **Strong Sell** | 1             |
| **Sell**        | 2             |
| **Hold**        | 3             |
| **Buy**         | 4             |
| **Strong Buy**  | 5             |

### Step 4: Aggregating Ratings

We count how many analysts fall into each category.

**Example Aggregate:**

* Strong Buy: 8 analysts
* Buy: 12 analysts
* Hold: 5 analysts
* Sell: 2 analysts
* Strong Sell: 1 analyst

**Total:** 28 unique analysts

### Step 5: Calculating the Consensus Rating Value

The consensus rating value is calculated as a weighted average:

```
Consensus Value = (Strong Buy × 5 + Buy × 4 + Hold × 3 + Sell × 2 + Strong Sell × 1) / Total Analysts
```

**Using the example above:**

```
Consensus Value = (8×5 + 12×4 + 5×3 + 2×2 + 1×1) / 28
Consensus Value = (40 + 48 + 15 + 4 + 1) / 28
Consensus Value = 108 / 28
Consensus Value = 3.86
```

### Step 6: Determining the Consensus Rating

The consensus value is rounded to the nearest whole number and mapped to a rating:

| Consensus Value | Standard Rating | Simplified Rating |
| --------------- | --------------- | ----------------- |
| **1**           | Strong Sell     | Sell              |
| **2**           | Sell            | Sell              |
| **3**           | Hold            | Hold              |
| **4**           | Buy             | Buy               |
| **5**           | Strong Buy      | Buy               |

**In our example:** 3.86 rounds to **4**, which translates to a **"Buy"** consensus rating.

***

## Display Options

### Standard vs. Simplified Ratings

We offer two display formats:

**Standard (5-category):**

* Strong Sell, Sell, Hold, Buy, Strong Buy

**Simplified (3-category):**

* Sell (combines Strong Sell + Sell)
* Hold
* Buy (combines Buy + Strong Buy)

### Count vs. Percentage Display

**Count Display:**
Shows the actual number of analysts in each category.

**Percentage Display:**
Shows the proportion of analysts in each category, rounded to whole percentages that sum to exactly 100%.

**Example:**

* Buy: 71% (20 analysts)
* Hold: 18% (5 analysts)
* Sell: 11% (3 analysts)

***

## Price Target Calculations

### Consensus Price Target

The average of all analyst price targets:

```
Consensus PT = Sum of all Price Targets / Number of Analysts
```

### Low and High Price Targets

* **Low Price Target:** The lowest price target among all analysts
* **High Price Target:** The highest price target among all analysts

These provide a range showing the spectrum of analyst expectations.

***

## Understanding the Metrics

### Total Analyst Count vs. Unique Analyst Count

* **Total Analyst Count:** All ratings collected (may include multiple ratings from the same analyst)
* **Unique Analyst Count:** The number of distinct analyst-firm combinations (used for calculations)

The unique count ensures each analyst's voice is counted only once, providing a more accurate consensus.

***

## Important Considerations

### Rating Freshness

Consensus ratings reflect the most recent analyst opinions. The **Updated At** timestamp indicates when the consensus was last calculated.

### Coverage Depth

Consensus ratings are more reliable when based on a larger number of unique analysts. Stocks with limited analyst coverage (fewer than 3-5 analysts) may have less stable consensus ratings.

### Rating Distribution

Pay attention to the distribution of ratings, not just the consensus. A stock with 50% Buy and 50% Sell ratings will have a "Hold" consensus, but this masks significant disagreement among analysts.

***

## Example Calculation Walkthrough

Let's walk through a complete example for **XYZ Corporation**:

### Raw Data (10 analysts)

| Analyst   | Firm            | Rating     | Price Target |
| --------- | --------------- | ---------- | ------------ |
| Analyst A | Goldman Sachs   | Buy        | \$150        |
| Analyst B | JP Morgan       | Strong Buy | \$165        |
| Analyst C | Morgan Stanley  | Buy        | \$155        |
| Analyst D | Bank of America | Hold       | \$140        |
| Analyst E | Citigroup       | Strong Buy | \$170        |
| Analyst F | Wells Fargo     | Buy        | \$152        |
| Analyst G | Deutsche Bank   | Hold       | \$145        |
| Analyst H | Barclays        | Sell       | \$130        |
| Analyst I | UBS             | Buy        | \$158        |
| Analyst J | Credit Suisse   | Strong Buy | \$168        |

### Step-by-Step Calculation

**1. Filter for unique analysts:** All 10 ratings are unique (10 analysts used)

**2. Aggregate counts:**

* Strong Buy: 3
* Buy: 4
* Hold: 2
* Sell: 1
* Strong Sell: 0

**3. Calculate consensus value:**

```
(3×5 + 4×4 + 2×3 + 1×2 + 0×1) / 10 = (15 + 16 + 6 + 2 + 0) / 10 = 3.9
```

**4. Determine consensus:** 3.9 rounds to **4 = "Buy"**

**5. Price targets:**

* Consensus PT: (150+165+155+140+170+152+145+130+158+168) / 10 = **\$153.30**
* Low PT: **\$130**
* High PT: **\$170**

**6. Percentage breakdown:**

* Buy: 70% (Strong Buy 30% + Buy 40%)
* Hold: 20%
* Sell: 10%

### Final Consensus Rating Output

```json theme={null}
{
  "consensusRating": "BUY",
  "consensusRatingValue": 3.9,
  "consensusPriceTarget": 153.30,
  "priceTargetLow": 130,
  "priceTargetHigh": 170,
  "totalAnalysts": 10,
  "uniqueAnalysts": 10,
  "lastUpdated": "2026-01-16T10:30:00Z"
}
```

***

## Frequently Asked Questions

<AccordionGroup>
  <Accordion title="Why might the total and unique analyst counts differ?">
    If an analyst from the same firm updates their rating multiple times, the total count includes all instances, but only the most recent is used in calculations (reflected in the unique count).
  </Accordion>

  <Accordion title="How often are consensus ratings updated?">
    Consensus ratings are recalculated whenever new analyst ratings are published or existing ratings are updated.
  </Accordion>

  <Accordion title="What happens if there are no analyst ratings?">
    Without analyst coverage, a consensus rating cannot be calculated. The stock will show no consensus data.
  </Accordion>

  <Accordion title="Can the consensus rating change without new analyst ratings?">
    No. The consensus only changes when analysts issue new ratings or update existing ones.
  </Accordion>
</AccordionGroup>

***

## Related Endpoints

<CardGroup cols={2}>
  <Card title="Consensus Ratings API" icon="chart-bar" href="/api-reference/calendar_api/consensus_ratings/returns-analyst-ratings-consensus-data">
    Get consensus rating data for stocks
  </Card>

  <Card title="Analyst Ratings API" icon="users" href="/api-reference/calendar_api/ratings/returns-analyst-ratings-data">
    Get individual analyst ratings
  </Card>
</CardGroup>