pe ratio and size of company

Those who read the UGL and MAH hreads will know elzephyrus and myself are using a list of 30 crtirea to search out the best 'buys' on the ASX. The best so far has been NMS which fulfills 29/30 criteria AND has the X factor. Others such as MAH are 27/30 etc.
Elzephyrus is far stricter than me re PE of company. He is very reluctant to buy unless the PE is 4 or below. However, his real strength is his attention to detail and his outstanding ability to dig out obscure bits of info buried in balance sheets. I am better at the macro/X factor side of things.
Today UGL jumped in price. the signs have been clear and readers will note i virtually begged holders not to sell yet. At 7.oo UGL had fwd PE of 7.15. Under his guidelines elzephyrus felt this was too high to warrant a purchase. I was less concerned as in Australia many of our superannuation/investment funds are forbidden to buy companies outside the ASX100. So comapered with some small-caps a PE of 7 seems high....... but UGL had (and still has) a far better PE (and div yield) than many in the ASX100.
please DYOR