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.
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BREAKING DOWN '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.
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