Investing & funds
What is GARP (Growth at a reasonable price)?
Hinglish mein padhein: GARP investing kya hai?
GARP investing looks for companies with steady earnings growth whose shares are not too expensive, blending growth and value styles.
Investors often use a P/E below 20–25 alongside healthy growth and ROE, or a PEG ratio near 1.
It aims to avoid both overpriced high-flyers and cheap businesses that are shrinking.
Related terms
- P/E ratioThe price-to-earnings ratio divides the share price by earnings per share. It shows how many rupees investors pay for each rupee of annual profit.
- PEG ratioThe PEG ratio divides the P/E by the expected earnings growth rate, to judge whether a high P/E is justified by growth.
- ROE (Return on equity)ROE is net profit divided by shareholders' equity. It shows how much profit the company makes on the money shareholders have invested.