Peter Lynch GARP Classifier

## Peter Lynch GARP Classifier

**Stock**: {COMPANY} ({TICKER})

**Step 1 — Lynch Business Category**
Classify into one of Lynch's six categories:
- [ ] Slow Grower (large, mature company; revenue growth < 5%)
- [ ] Stalwart (steady grower 5–12%; large-cap defensive)
- [ ] Fast Grower (earnings growth 20–25%+; Lynch's favorite)
- [ ] Cyclical (profits tied to economic cycle)
- [ ] Asset Play (hidden assets not reflected in stock price)
- [ ] Turnaround (from near-bankruptcy back to growth)

Category: ___ | Why: ___

**Step 2 — PEG Ratio**
- P/E ratio (forward): ___
- Expected EPS growth rate (5-yr): ___%
- PEG = P/E ÷ EPS growth = ___
  - PEG < 0.5: Potentially undervalued (Lynch: bargain)
  - PEG 0.5–1.0: Fairly priced
  - PEG 1.0–1.5: Somewhat expensive
  - PEG > 1.5: Overpriced for growth rate

**Step 3 — Lynch's Favorite Traits (check all that apply)**
[ ] Company is in a boring or unglamorous industry (less analyst coverage)
[ ] It's a niche with little direct competition
[ ] Insiders are buying
[ ] Company is buying back stock
[ ] No institutional ownership or very low coverage
[ ] The growth story is simple enough to explain in 2 minutes (the cocktail story)

Traits matched: ___ / 6

**Step 4 — Red Flags (Lynch's danger signs)**
[ ] The company is diversifying into unrelated businesses (diworsification)
[ ] Management is spending on lavish HQ or jet fleet
[ ] It is dependent on one customer for >25% of revenue
[ ] Inventory growing faster than revenue

**Lynch Verdict**
- Category + PEG + Traits = Buy / Watch / Avoid
- Estimated upside to fair value (based on target PEG of 1.0): ___%