When looking at high P/E stocks it is useful to compare the P/E ratio to the quantum of earnings growth that the company is expected to generate.
One way of doing this is by calculating a PEG ratio in order to find growth at a reasonable price (GARP). Value and growth managers are often at loggerheads over differences in their investment methodologies. GARP managers occupy the middle ground between the two. It is sensible to look for growth without overpaying for it and PEG ratios can help in this regard.