Growth at a Reasonable Price

About growth at a reasonable price stocks

Growth at a reasonable price, often shortened to GARP, is an approach for investors who want business expansion without paying any price for it. This collection looks for companies showing meaningful revenue and earnings growth while keeping valuation measures within a more disciplined range. The aim is to identify businesses where growth expectations and the current share price can be considered together, rather than treating growth or value as isolated styles.

What this GARP stock screener looks for

The screen starts with companies above a $500 million market-capitalisation threshold. It then applies a P/E range of 0 to 30, a PEG ratio between 0 and 1.5, average three-year revenue growth of at least 10%, average three-year EPS growth of at least 10%, and ROE of at least 15%. Stocks are sorted by PEG ratio, with lower readings appearing first. The combination is intended to balance evidence of growth with a valuation that is not unusually stretched according to the selected measures.

How to research the results

Use the growth at a reasonable price stock screener to find candidates for a structured review. Check whether historical revenue growth came from repeatable demand, pricing, acquisitions, or a temporary recovery. Then examine whether EPS growth is supported by operating improvement and cash generation rather than only share buybacks or accounting effects. P/E and PEG ratios are most useful when compared with direct competitors, the company’s own history, and the durability of its expected growth.

Why context matters

PEG ratios depend on the growth measure used and may rely on estimates that change quickly. Strong historical growth does not guarantee that a company can maintain the same pace as it becomes larger. ROE can also be influenced by leverage, so review debt, interest costs, and balance-sheet quality alongside profitability. The collection is a research filter, not a forecast of future returns. Results can change as market prices, earnings, and company data are updated, so revisit promising candidates and read their latest filings before drawing conclusions.

Comparing GARP candidates

When several companies qualify, compare the quality of their growth rather than choosing only the lowest PEG ratio. Consider recurring revenue, customer retention, operating leverage, reinvestment requirements, and the strength of the competitive advantage. A business with slower but more predictable growth may be more resilient than one with a higher historical rate and greater uncertainty. Review management guidance and industry conditions, then test whether the current valuation still appears reasonable under more conservative growth assumptions.