How it works?

Price-to-Earnings (P/E) tells us how investors price 1$ of companies earnings. Usually it is compared against the market or sector's median in order to tell if our stock is overpriced or underpriced by investors.
Practically the earnings part of P/E is a function revenue and cost (revenue-cost=earnings!). Based on this we can do some modelling!

This tool tells if the price remains the same then how revenue and cost must change in order to P/E ratio of the stock to reach the market median.

By modelling different revenue growth levels we can estimate how the cost has to change in order to achieve that equilibrium.
THIS IS ONLY SIMULATION and its main aim is to get insight into how reliable is the current price.

After you see what it would take to drive your stock's P/E to the equilibrium (in terms of revenue growth or cost reduction) then you MUST ask yourself "Is this achievable?"

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