4 Best GARP Picks for Your Portfolio Based on Discounted PEG

A Few More Words on GARP The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential. Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential. In the equity market, investments need to be prud ...