Magic Formula Investing

Magic Formula Investing

Last Updated: Wed, 23 May 2018 16:32:12

Magic formula investing is a term referring to an investment technique outlined by Joel Greenblatt that uses the principles of value investing.

Greenblatt suggests purchasing 30 'good companies': cheap stocks with a high earnings yield and a high return on capital.

He touts the success of his magic formula in his book 'The Little Book that Beats the Market', Joel Greenblatt, citing that it does in fact beat the S&P 500 96% of the time, and has averaged a 17-year annual return of 30.8%.

Contributor: Maher Alias.

Stock Last Price Market Cap EY ROIC Magic Rank Total Score
HENGYUAN [NS] 7.16 2148 33.72 29.87 2 8.0
PETRONM 8.52 2300 29.4 26.8 3 10.7
GKENT* 1.5 844 20.58 26.15 4 9.8
LIIHEN* 2.69 484 19.95 25.47 5 11.9
KUCHAI [NS] 2.23 274 33.31 16.92 6 5.4
MAGNI* 4.65 753 18.06 24.08 7 8.6
KEN 0.8 152 35.5 14.81 8 11.2
GADANG* 0.76 502 33.09 14.57 9 9.1
HUAAN* 0.42 471 16.23 22.16 10 4.2
TAMBUN* 0.81 350 30.3 14.3 11 9.6
FAJAR* 0.41 152 77.87 13.66 12 9.8
HOMERIZ* 0.635 190 17.81 17.99 13 9.4
MWE* 1.67 385 18.54 17.56 14 12.6
POHUAT* 1.35 314 20.24 15.43 15 11.4
MATRIX* 1.92 1443 18.08 15.7 16 5.7
IDEAL 0.65 71 63.31 13.0 17 7.3
DUFU* 1.12 196 14.76 17.98 18 9.8
LEONFB [NS]* 0.72 223 15.64 15.66 19 7.7
JAYCORP 0.895 122 23.61 12.14 20 6.9
OKA* 1.28 208 15.04 15.28 21 8.1
SEG [NS]* 0.64 808 11.93 46.57 22 7.3
ECONBHD* 0.665 889 12.52 24.79 23 8.4
SDRED [NS]* 0.775 330 28.35 11.0 24 8.8
LITRAK 3.99 2102 13.63 16.73 25 9.2
VIS 0.395 66 12.62 18.43 26 5.6
WONG 0.945 85 12.69 17.61 27 5.4
AWC* 0.765 208 15.7 12.38 28 9.3
SUNSURIA* 1.12 893 17.3 11.66 29 11.4
KGB 0.775 189 12.18 17.97 30 8.5
ARANK 0.755 90 16.58 11.17 31 9.9
LYSAGHT [NS] 3.5 143 14.61 11.82 32 12.3
OPENSYS 0.275 81 13.0 13.64 33 4.4
SUCCESS* 1.01 252 20.04 9.28 34 10.5
GBGAQRS* 0.935 444 18.71 9.28 35 6.4
OIB* 2.2 338 19.3 9.21 36 6.8
CCK* 1.72 541 14.95 10.4 37 13.3
CHOOBEE* 2.33 253 20.36 8.62 38 9.5
KIMLUN* 1.85 592 14.47 10.87 39 8.0
DBHD 0.455 144 12.97 12.94 40 1.9
HEVEA* 0.965 539 11.95 13.79 41 9.4
ECS* 1.16 208 16.46 9.48 42 5.2
TGUAN* 2.6 353 15.57 9.55 43 10.7
ALCOM 0.755 101 13.88 10.69 44 6.3
INTA 0.335 179 11.22 16.16 45 4.8
MMSV* 1.38 224 9.13 36.26 46 11.6
PRESTAR* 0.89 181 18.71 8.58 47 8.1
BJTOTO [NS] 2.46 3323 10.76 17.66 48 8.3
KAB 0.255 81 10.83 16.89 49 4.9
IBHD* 0.485 488 18.95 8.44 50 7.1
KMLOONG [NS]* 1.33 1243 11.79 13.96 51 8.9
ASTINO* 0.795 217 18.46 8.46 52 12.3
TONGHER* 3.62 568 12.59 12.01 53 10.9
SCC [NS] 0.51 71 11.33 14.71 54 9.8
ASTRO [NS] 1.57 8184 10.1 19.94 56 5.9
MFCB* 3.56 1459 14.61 9.49 57 11.0
EDGENTA 2.01 1670 9.27 26.1 58 6.2
3A* 0.95 467 12.21 12.14 59 8.8
SKPRES 1.53 1912 9.1 24.92 60 9.7
YOCB 1.11 176 12.56 11.07 61 11.7
PPHB 0.6 112 18.29 7.61 62 11.4
FPI [NS]* 1.48 365 10.55 14.7 63 10.5
INNO* 0.82 391 13.24 9.76 64 7.9
PRTASCO* 0.605 299 27.72 7.08 65 4.1
RHONEMA [NS] 0.87 144 11.04 13.47 66 7.3
SOP 3.44 1960 14.69 8.48 67 10.4
DELEUM* 1.1 440 13.46 9.22 68 8.1
LIONIND* 0.885 634 27.03 6.98 69 7.8
UMSNGB 1.02 81 14.93 8.04 70 8.2
DANCO [NS] 0.4 119 12.56 10.39 71 5.5
LUXCHEM* 0.65 555 10.35 14.12 72 8.8