growth at a reasonable price

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Growth at a Reasonable Price

An equity investment strategy, popularized by Peter Lynch, that seeks to find a balance between the growth strategy and the valuation strategy. The strategy aims at investing in stocks with sustainable growth in a relatively low (compared to growth investing) price range. GARP investors tend to favor older companies with solid growth rates, such as General Electric.

growth at a reasonable price (GARP)

The strategy of investing in stocks with growth potential but only when the stocks are reasonably priced relative to the overall market. GARP investors generally search for a favorable combination of earnings growth (higher is better) and price-earnings ratio (lower is better).