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Tests the validity and reliability of peer evaluations of student performance among 75 third‐year university students on a management course. Each student predicted the future performance of the other members of his/her seminar group in the final exam for the course on two separate occasions. Validates the extent to which these predictions matched the actual performances of the ratees in the final exam. The students also rated their similarity to each of the ratees on three aspects relevant to the course. The test‐retest reliability and validity coefficients of the peer evaluations were both significant. The validity of evaluations for others perceived to be similar was significantly higher than for those perceived to be dissimilar. Develops implications of these results for assessment and evaluation in higher education.

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