Overcast

AAA

DEFINITION of 'Overcast'

A forecasting error that occurs when estimating volumes of items such as future cash flows, performance levels or production. Overcasting produces an estimation that is above the realized value.

INVESTOPEDIA EXPLAINS 'Overcast'

Overcasting is caused by a variety of forecasting factors. The main factor that results in overcasting is using the wrong inputs. For example, when estimating the net income of a company for next year, you may overcast the amount if you underestimate costs or overestimate sales.

RELATED TERMS
  1. Accounting

    The systematic and comprehensive recording of financial transactions ...
  2. Forecasting

    The use of historic data to determine the direction of future ...
  3. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Undercast

    A forecasting error that occurs when estimating items such as ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Great Expectations: Forecasting Sales ...
    Fundamental Analysis

    Great Expectations: Forecasting Sales ...

  2. Analyst Forecasts Spell Disaster For ...
    Investing

    Analyst Forecasts Spell Disaster For ...

  3. Forecasting Market Direction With Put/Call ...
    Options & Futures

    Forecasting Market Direction With Put/Call ...

  4. Style Matters In Financial Modeling
    Professionals

    Style Matters In Financial Modeling

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center