Sometimes, I think that the PE ratio is not that important, as long as it's not insane (like a PE of 50 or 100, for instance).
And the ROE isn't everything. Oh no. The market is full of high ROE stocks that go nowhere. It's just that, as a group, these stocks have more chances to go up, because they generate more cash than the others.
I now appreciate as much a good track record than a high ROE. For instance, I believe that if a stock had a great EPS growth over the last 5 or 10 years and the free cash flows are growing in a steady way too, that's a great indicator of a stock to own. Plus, if the current PE is about the same or lower than the average PE of the last 5 years, it shows that it may be a good moment to buy.
You may say: "Yeah, but if the current PE is lower than the average, it's probably for a good reason. Nothing is on sale for no reason". That's right. You have to be humble face to the market. You're not a fucking prospector barefoot in the Klondike in the 1800's. You live in an Internet world where everybody knows everything about everything.
So, here's a list of stocks that have growing free cash flows, that have achieved a great EPS growth over the last 5 years and that are selling at a PE ratio equivalent or lower than the 5 last years average (it doesn't mean at all that the current PE is low, it's just that it's lower or equivalent to the average):
MTY Food Group
Fortune Brands Home & Security
Credit Acceptance Corp
Robert Half International
Not any bad name on that list in my opinion.
They all fucking compound.