What is 'Undercast'

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

Explaining 'Undercast'

There are a number of factors that may lead to undercasting values. The primary reason for undercasting involves using the wrong inputs. For example, when estimating the net income of a company for next year, you may undercast the amount if you overestimate costs or underestimate sales. You may have expected sales to be $5 million and costs to be $3 million. This forecasts a net income of $2 million. If actual net income was $2.5 million, you would have undercast the income by $500,000.

Further Reading

Measuring Abnormal Performance in Event Studies: An Application with Bonus Issue Announcements in Colombo Stock Exchange (CSE)
papers.ssrn.com [PDF]
… to the middle way was, for Keynes, the break with laissez-faire economics, which he … Keynes envisioned that the role of the economist was to solve the economic problem: the … The postwar international economic order was, as Ruggie argued, designed around the principle of …

THE IMPACT OF THE USE OF COMPUTERISED ACCOUNTING SYSTEMS IN FINANCIAL REPORTING
ir.csuc.edu.gh [PDF]
… to the middle way was, for Keynes, the break with laissez-faire economics, which he … Keynes envisioned that the role of the economist was to solve the economic problem: the … The postwar international economic order was, as Ruggie argued, designed around the principle of …

Socio-economic restructuring and urban poverty under different welfare regimes
books.google.com [PDF]
… to the middle way was, for Keynes, the break with laissez-faire economics, which he … Keynes envisioned that the role of the economist was to solve the economic problem: the … The postwar international economic order was, as Ruggie argued, designed around the principle of …

West Africa's CO 2 emissions: investigating the economic indicators, forecasting, and proposing pathways to reduce carbon emission levels
link.springer.com [PDF]
… to the middle way was, for Keynes, the break with laissez-faire economics, which he … Keynes envisioned that the role of the economist was to solve the economic problem: the … The postwar international economic order was, as Ruggie argued, designed around the principle of …