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GARP Investing Simplified (With Example) !

Garp

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Muhammad Iqbal
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111 views9 pages

GARP Investing Simplified (With Example) !

Garp

Uploaded by

Muhammad Iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MANASWI DIWAN

GARP
Investing
(Growth At a Reasonable Price)

simplified
with
examples
MANASWI DIWAN

GARP stands for Growth At a Reasonable


Price.

In simple words, it means you’re looking


for companies that are:

1. Growing steadily
2. Still reasonably priced (not overpriced)

It’s like finding that perfect sweet spot


companies that have room to grow but aren't so
expensive that you feel like you’re overpaying.
MANASWI DIWAN

Think about buying something you need, like


a phone.

You don’t want to go for the cheapest one


because it won’t last, but you also don’t
need the fanciest one with features you’ll
never use.

GARP investing is similar—you’re looking for


stocks that offer good growth without
being overpriced.

You’re aiming for value for money.


MANASWI DIWAN

Why do people
love GARP?
Because it’s a balanced approach.

You’re not chasing high-risk stocks or only


buying super safe ones. You’re picking
companies with solid growth that aren’t too
expensive.

This gives you better potential returns with


less risk compared to only growth or only value
stocks.
MANASWI DIWAN

How to Spot a GARP


Stock?
MANASWI DIWAN

Here’s what to look for:

PEG Ratio - If the PEG ratio (Price/Earnings


Growth) is around 1 or below, it means the
stock is reasonably priced for its growth
potential.

Earnings Growth - Look for companies that


have a track record of consistent earnings
growth. They’re not just a one-hit wonder;
they’ve shown they can keep growing over
time.
MANASWI DIWAN

Indian Market Examples


HDFC Bank - Steady
growth over the years
and still fairly priced.

Marico - This FMCG stock


has shown consistent
growth without being
overpriced. A perfect
balance of reliability and
growth potential.
MANASWI DIWAN

Not every stock stays a GARP stock


forever.

Just like how the price of a product can go


up once it becomes popular, the stock
price can become too high or the growth
may slow down.

Make sure you regularly re-evaluate your


GARP stocks to ensure they’re still
offering that balance of growth and
value.
Manaswi Diwan

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