Peter Lynch's Investing Strategy

The framework, in plain English

• PEG ratio ≤ 1.0 - price-to-earnings divided by growth rate.
• EPS CAGR ≥ 15% over 5 years.
• Revenue growth ≥ 10% annually.
• Positive net margin (the business actually makes money).
• Manageable debt - D/E < 1.
• Free cash flow positive (cash earnings, not just accounting earnings).

From One Up On Wall Street (Lynch, 1989) and Beating the Street.

Top 10 stocks scoring high on Peter Lynch

1. #1CALM85/100 · A

   Strong GARP candidate — growth at a reasonable price.

2. #2ESE85/100 · A

   Strong GARP candidate — growth at a reasonable price.

3. #3FLNG85/100 · A

   Strong GARP candidate — growth at a reasonable price.