This is my target price and is a function of projected earnings per share and growth rate. I use the last 12-16 quarters of revenue and eps data to forecast future revenues and eps. I use a statistical algorithm that seasonally adjusts and predicts.
I only seriously consider companies who have predictable (not always apparently stable) revenues, reporting net profits. In statistical lingo, if the R^2 on the regression is less than 0.95, I stop looking and move on to the next opportunity.
This process removes a lot of the emotion and speculation that makes objective decisions difficult.