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Tipping Point: What is the GARP approach to investing?

This approach is well-suited to current market conditions

Tipping Point: What is the GARP approach to investing?
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Business Standard
What is the GARP approach to investing?

GARP stands for growth at reasonable price. This approach is well-suited to current market conditions when a large number of stocks are trading at more than their five-year average P/Es (price-to-earnings ratio). If you adhere to a strict value approach, you would not be able to invest in any of these stocks. So, many investors rely on the PEG (P/E to growth) ratio.

How are stocks chosen here? 

To calculate the PEG ratio, a stock’s P/E ratio is divided by its EPS (earnings per share) growth rate. If the PEG ratio is less

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