GARP Investing

Growth at a Reasonable Price (GARP) is an investment strategy that blends the best of growth and value investing. It seeks companies with strong earnings growth potential, but whose shares are not overvalued relative to that growth.

Originally popularised by investor Peter Lynch, GARP aims to find “growth stories without the high price tag.” These companies typically show:

• Growth – steady increases in sales and earnings
• Value – share prices that remain reasonable relative to fundamentals (like P/E ratios)
• Quality – strong balance sheets and efficient use of capital (high ROE, low debt)

By combining these factors, GARP investing offers a balanced, disciplined approach that avoids paying too much for hype while still capturing long-term growth potential.