Hello T Muscat,
There are a number of interconnected answers to your question. The earnings per share (EPS) estimate is notoriously unreliable. It should never be trusted, because it's too easy to manipulate by companies. So that makes a EPS times current PE ratio very difficult to use.
We use three different valuation approaches to determine the correct value of a company. Within those valuation approaches is hundreds of equations that try to compute the correct value of a company. Even if we are off in any of those approaches, we make the analysis completely transparent so you can see the analysis. If you want to make changes, we have an experimental mode where you can change the information and compute a different conclusion.
The future estimates come from past results and analyst revenue opinions going forward.
We hope this helps,
WikiWealth
