So one should be easily be able to identify about 10 DOW stocks (out of 50) that need to drop by approx 60% to reach fair value ?

Here is the data for DOW 30 and PE

PE if you exclude AA is 16.8 * AA has a very high PE so skewing the data
PE for 30 companies is 20.8
PE if you exclue AA, T and VZ is 14.5

I cannot find any company that need to fall by 60% to reach fair value. Needless to say, no one will call IBM way overvalued given that WEB was a buyer at $170+.

Note: We are trying to find companies that are highly highly overvalued (not slightly overvalued) - something that should jump out

Stock PE
-------------
AA 132
AXP 13.65
BA 12.21
BAC 12.12
CAT 9.48
CSCO 12.62
CVX 8.74
DD 13.37
DIS 17.03
GE 19.62
HD 21.91
HPQ NA
IBM 15.11
INTC 9.3
JNJ 21.73
JPM 9.19
KO 10.25
MCD 17.3
MMM 15.36
MRK 21.08
MSFT 14.64
PFE 18.97
PG 18.79
T 49
TRV 12.47
UNH 11.64
UTX 16.21
VZ 45.7
WMT 15.63
XOM 9.71