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Jaded investors may scoff at the idea of pursuing an already large company as a growth investment, but today we aim to show you that there are a number of opportunities in this space. Today, we screened for large cap companies that are expected to continue their steady growth into the foreseeable future, and as an added bonus, appear to be currently priced under their true value when examined by their price-multiples. If these kinds of companies appeal to you as an investor, then we'd come up with a compelling list of companies for you to research more.

The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses forecasted numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number the more a firm is financing its assets internally through stockholder equity. The higher this metric the more the firm is relying on debt to finance its assets.

The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. A lower ratio is 'better' (cheaper) and a higher ratio is 'worse' (expensive) - a PEG ratio of 1 means the company is fairly priced.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for large cap stocks. We then looked for companies with a low price-multiple premium (forward P/E < 10) (PEG < 1). We then screened for businesses that are considered high-growth, with 1-year projected EPS growth above 25%. We did not screen out any sectors.

Do you think these large-cap stocks deserve to grow higher? Use this list as a starting point for your own analysis.

1) Rio Tinto plc (NYSE:RIO)

Sector:Basic Materials
Industry:Industrial Metals & Minerals
Market Cap:$85.43B
Beta:1.66

Rio Tinto has a Forward Price/Earnings Ratio of 6.04, a Price/Earnings to Growth Ratio of 0.94, and a 1-Year Projected Earnings Per Share Growth Rate of 26.82%. The short interest was 0.68% as of 07/18/2012. Rio Tinto engages in finding, mining, and processing mineral resources worldwide. Its businesses include operating open pit and underground mines, mills, refineries, and smelters, as well as various research and service facilities. The company is involved in the mining and production of aluminum products, including bauxite, alumina, and aluminum; copper, gold, molybdenum, silver, and nickel; diamonds; minerals, such as borates, titanium dioxide feedstocks, high purity iron, metal powders, zircon, and rutile; thermal and coking coal, and uranium; and iron ore and salt.

2) Gerdau S.A. (NYSE:GGB)

Sector:Basic Materials
Industry:Steel & Iron
Market Cap:$14.67B
Beta:1.98

Gerdau has a Forward Price/Earnings Ratio of 5.58, a Price/Earnings to Growth Ratio of 0.88, and a 1-Year Projected Earnings Per Share Growth Rate of 64.50%. The short interest was 1.31% as of 07/18/2012. Gerdau engages in the production and sale of steel products in Brazil and internationally. The company offers crude steel products, which include billets that are used to manufacture wire rods, rebars, and merchant bars; blooms for use in the manufacture of springs, forged parts, heavy structural shapes, and seamless tubes; and slabs, which are used in the steel industry for the rolling of various flat rolled products, as well as to produce hot and cold rolled coils, heavy slabs, and profiles. Its long rolled products include rebars, merchant bars, and profiles, which are used in construction and manufacturing industries; and drawn products comprise barbed and barbless fence wire, galvanized wire, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural sectors.

3) Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)

Sector:Financial
Industry:Foreign Regional Banks
Market Cap:$32.99B
Beta:1.85

Banco Bilbao Vizcaya Argentaria has a Forward Price/Earnings Ratio of 5.73, a Price/Earnings to Growth Ratio of 0.58, and a 1-Year Projected Earnings Per Share Growth Rate of 81.36%. The short interest was 0.11% as of 07/18/2012. The company engages in retail banking, asset management, private banking, and wholesale banking businesses. It accepts various customer deposits, such as demand, savings, and time deposits; and offers commercial and industrial, construction real estate, mortgage, and individual loans. The company provides corporate, business, and investment banking services; and insurance products, as well as manages mutual and pension funds; and engages in treasury and distribution activities.

4) Ensco plc (NYSE:ESV)

Sector:Basic Materials
Industry:Oil & Gas Drilling & Exploration
Market Cap:$11.40B
Beta:1.30

Ensco has a Forward Price/Earnings Ratio of 7.10, a Price/Earnings to Growth Ratio of 0.80, and a 1-Year Projected Earnings Per Share Growth Rate of 31.94%. The short interest was 1.15% as of 07/18/2012. Ensco provides offshore contract drilling services to the oil and gas industry worldwide. It owns and operates an offshore drilling rig fleet of approximately 77 rigs, including 7 drill ships, 13 dynamically positioned semisubmersible rigs, 7 moored semisubmersible rigs, 49 jack up rigs, and 1 barge rig used to drill and complete oil and natural gas wells. The company's drilling rigs are located in Brazil, Europe and Mediterranean region, the Middle East and Africa region, and the Asia Pacific rim region.

5) Mitsui & Company, Ltd. (OTCPK:MITSY)

Sector:Conglomerates
Industry:Conglomerates
Market Cap:$27.12B
Beta:1.18

Mitsui has a Forward Price/Earnings Ratio of 4.23, a Price/Earnings to Growth Ratio of 0.14, and a 1-Year Projected Earnings Per Share Growth Rate of 34.61%. The short interest was 0.02% as of 07/18/2012. Mitsui operates as a general trading company in Japan and internationally. The company involves in arranging financing for customers and suppliers in connection with its trading activities, organizing and coordinating industrial projects, participating in financing and investing arrangements, assisting in the procurement of raw materials and equipment, providing new technologies and processes for manufacturing, and coordinating transportation and marketing of finished goods. Its trading activities include the sale, distribution, purchase, marketing, and supply of various products, including iron and steel, nonferrous metals, machinery, electronics, chemicals, energy-related commodities and products, food products, textiles, and general merchandise.

*Company profiles were sourced from Yahoo Finance. Financial data was sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 High-Growth Large Caps Trading Below Fair Value