Vijay
There is nothing in this method that should be looked seriously into. This is what we all do. We take last 5-10 years EPS data and find out CAGR. Then project the same EPS growth rate in future (if there is no drastic change like IT companies where past EPS growth rate will not be the right measure for future EPS).
Once you project EPS for next few years, you can discount at the rate of return that you want. It could be 15% in case of Buffet. You can discount at 20% for Indian market.
Where does brokerage estimates come into picture though. Why would you even bother about what brokers estimate. Most of the brokers go by technical analysis. In that case, EPS etc hardly makes any sense.