Anchored Assumption
A model input set to match a familiar reference point -- often the current price, sell-side consensus, or management guide -- rather than to characterize the underlying business. Anchoring is the most common mechanism by which defending models drift from exploring ones: an analyst types in \"3.5% terminal growth because the answer was too low at 2.5%\" without independent evidence that 3.5% is the right number. The corrective is to document the SOURCE of each input before opening the spreadsheet, and to refuse to update an input without new evidence.
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Related terms
Ambiguity Aversion · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta · Build-Up Method
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