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Dave Yahoo has a free stock screener on there somewhere I use MSN money deluxe it is free. I think rueters has one and there are probably others. For a fundamental researcher screeners are valuable tools. What a screener does is basicaly compare all stocks in its data base to see if they comply with your criteria and then display the top matches. Back to P/E when I search with the screener I set this indicator as follows (current P/E <= industry average P/E) so it will return a list of companies that have a P/E less than the industry average. I use other criteria to sort out other companies like Market cap, cash flow, and debt/equity among many others. I think investopedia has a few articles on stock screeners you should read them and let me know how you make out.
PEG is an indicator of value and growth relative to other companies. A company that has lower growth may have a low P/E but a higher PEG than one in the same sector that has a higher P/E but has higher growth so a lower PEG. The industry average PEG will also be a factor when comparing companies of different sectors or when the sector has a high average. A company that has a PEG 25% below the industry average vs a company that has a lower PEG but is 25% above it's industry average.
All I got for now Dave.
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Joe Styles
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