what is undercast 
undercast is a type of forecasting error that occurs when estimates turn out to be below realized values these estimates could apply to sales an expense line item net income cash flow or any other financial account understanding undercastcompanies try to predict their financial performance for the upcoming year they typically use forecasting models based on a variety of inputs including the economic environment past performance and any changes in legislation that could impact the business forecasts and budgets help a company determine how to best allocate resources confirm areas in the company that are working efficiently and highlight areas that need correction in the business process when a company in the private sector government agency or nonprofit organization prepares its budget for the upcoming year it relies on its best and most up to date information to estimate what the operational numbers will look like for the next 12 months typically the two main areas that a business aims to estimate are its revenues and its expenses this will indicate what it expects its profits to be for the upcoming year managers of businesses pull together all relevant information and make assumptions sometimes these assumptions are subject to greater degrees of uncertainty which may ultimately cause an undercast or overcast 