Multi-Factor · Use Case

GARP setup alerts (growth at a reasonable price)

GARP is one of the classic multi-factor strategies: revenue growth above 20%, P/E below 25, and positive earnings momentum. Get alerts when all three conditions align.

What is GARP?

GARP stands for Growth At a Reasonable Price. It's the middle ground between pure growth (buying expensive high-flyers) and pure value (buying cheap stagnant stocks).

GARP looks for companies with strong growth metrics trading at reasonable valuations — often the sweet spot for long-term compounding. The strategy combines revenue growth, valuation discipline, and earnings momentum.

Example
Stocks with revenue growth above 20% YoY, P/E below 25, and EPS estimates revised up in the last 30 days
NVDA revenue +24% YoY, P/E 22.3, EPS estimates ↑12%. All 3 conditions met.

Variations on GARP

The classic GARP formula can be adjusted for different market environments. In high-rate regimes, tighten the P/E threshold to 20. In growth markets, raise the revenue threshold to 25-30%. Tickerbot lets you customize every parameter to match your investment style and the current market regime.

Strict GARP example

Apply more stringent filters to find the highest-quality GARP setups. Add margin expansion or free cash flow positivity to filter for companies that are not just growing, but doing so profitably and efficiently.

Example
Revenue growth above 25%, P/E below 20, profit margin above 15%
MSFT revenue +18% YoY, P/E 19.8, margin 22%. Quality GARP.

Common variations you can build

  • PEG ratio below 1.5 (growth / P/E < 1.5)
  • Revenue growth above 20%, P/E below 30, free cash flow positive
  • GARP + technical: revenue growth 20%+, P/E < 25, golden cross
  • Small-cap GARP: market cap under $5B, growth 30%+, P/E < 20

Related alerts

Other multi-factor and fundamental alerts

Set up your first GARP alert