You can enter your guesses as to future P / E10 levels, such as 14 to
represent typical valuations, 8 for bargain valuations and 18 for higher than normal valuations.
Not exact matches
In fact, one can show that
valuations tend to be best correlated with subsequent market returns over periods
representing roughly 0.5, 1.5 or 2.5
typical market cycles (see my 2014 Wine Country Conference presentation, A Very Mean Reversion, for details).
The following chart
represents the earnings per share forecast used in the discounted earnings
valuation from above and the
typical P / E ranges that shares of Hershey have traded for.