The equation is correct but engines may not behave the way you may think they do.
Engines produce only torque and speed, horsepower is a calculated value showing how much energy they are producing per unit of time. Engine torque is multiplied with gears to create a lateral force on the contact patch of the tire where it meets the road. More torque means more force and more acceleration.
Horsepower is a measure of "how quickly" the engine can produce that torque (note to LucyR, please give me some latitude here). Producing a very high torque at a low speed, like a truck engine, is fine for applications where ultimate acceleration isn't needed because the total POWER, torque multiplied by RPM, doesn't have to be too high. But if you want plenty of acceleration for a sustained period of time, like a dragster, go for horsepower and the proper gearing.
The horsepower curve usually peaks a bit after the torque curve because it benefits from both torque and speed. Once the engine's friction (which increases as a quadratic function of engine speed, with constant, linear and squared terms) becomes too great, and induction and cylinder filling losses increase at higher speeds, the torque drops with increasing speed faster than the speed itself increases. This causes the horsepower to drop with increasing RPM after the peak: torque is going down too fast.
So, engines ONLY produce torque and speed. Horsepower is proportional to their product. Does this help?