GARP

For a GARP (Growth At a Reasonable Price) classification, the idea is to combine growth metrics with valuation discipline.
In other words: a company that grows faster than the market but is not overpriced.

💡PE-Ratio (PE ensures the company is not priced like a pure growth stock.)

PE-Ratio	Interpretation
<10	Value
10-20	Value/GARP
20-30	GARP
>40	Groth speculation

Core factors that define the GARP logic

PEG / PEGY (PEG = PE / EPS Growth=> Ideal range: 0.5 – 1.5 (PEG ≈ 1 means price matches growth).
Neo provides "YES" for PEG Trap Flag and "NO"

EPS Growth (3–5y CAGR)

Revenue Growth (Rule: PE < 2 × EPS growth/ Example:Growth = 15%, PE should be < 30)

PE Relative to Growth

Profitability (ROE-Ratio)

Debt Control (D/E- Ratio)

Earnings Stability (EPS - score /Check:positive EPS growth last 3 years)

Growth At a Reasonable Price=> GARP model score system

GARP Score = Growth + Valuation + Quality + Risk filters

1 — PEG / PEGY

PEGY-Ratio	Score
<0.7	100
0.7 - 1.0	80
1.0 - 1.2	60
1.2 - 1.5	30
>1.5	0

Weight = 30%

2 — EPS Growth (3–5y CAGR)

EPS Growth	Score
>25%	100
20 - 25%	80
15 - 20%	70
10 - 15%	60
5 - 10%	30
< 5	0

Weight = 20%

3 — Revenue Growth

Revenue CAGR	Score
>20%	100
15 - 20%	80
10 - 15%	70
5 - 10%	30
< 5	0

Weight = 15%

4 — PE Relative to Growth

Condition	Score
PE < Growth	100
PE < 1.5xGrowth	80
PE < 2xGrowth	60
PE > 2xGrowth	0

Weight = 15%

5 — Profitability (ROE)

ROE	Score
> 25%	100
20 - 25%	80
15 - 20%	60
10 - 15%	40
< 10	0

Weight = 10%

6 — Debt Control

Debt / Equity	Score
< 0.3	100
0.3 - 0.6	80
0.6 - 1.0	60
1.2	30
>2	0

Weight = 5%

7 — Earnings Stability

Condition	Score
all positive	100
1 negative	40
multiple negative	0

Weight = 5%

Scanner Classification

Score	Classification
> 80	Elite GARP
70 - 80	Strong GARP
60 - 70	Acceptable
< 60	Reject