Magic Formula Investing

Magic Formula Investing

Last Updated: Fri, 23 Feb 2018 17:16:08

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
DELEUM* 1.01 404 15.77 7.28 67 8.5
INNO* 1.0 479 11.59 9.56 68 6.9
SHL* 2.7 653 13.15 9.71 69 10.4
FLBHD [NS] 1.18 121 18.57 7.47 70 7.1
FIMACOR* 2.03 489 18.64 6.57 71 6.3
TOMYPAK [NS]* 0.98 138 13.77 8.62 72 7.5
UMSNGB 1.06 83 13.78 8.6 73 7.1
ASIAFLE* 2.66 517 11.72 10.36 74 9.9
IBHD* 0.525 556 15.63 6.51 75 6.7
MIKROMB* 0.4 132 9.02 16.51 76 6.7
SCC [NS] 0.565 79 9.46 15.8 77 10.5
LITRAK 5.85 3082 9.43 12.07 79 12.8
MMSV* 1.61 259 7.44 24.78 80 12.9
GKENT* 4.28 2406 7.87 27.97 81 14.8
ALLIANZ [NS] 12.9 2241 12.36 11.35 82 7.5
SCICOM* 1.95 692 7.32 39.46 83 13.0
SOP 3.7 2112 13.96 8.06 84 10.1
KGB 0.835 192 8.83 13.97 85 9.9
SLP* 1.45 270 19.2 6.79 86 6.2
CWG 0.505 63 13.86 10.96 87 8.2
CHOOBEE* 2.65 288 14.75 5.6 88 12.2
TAKAFUL 3.45 2839 7.63 24.81 89 5.5
BPLANT 1.69 2704 7.42 9.92 90 13.5
LIONIND* 1.35 919 16.5 6.19 91 8.9
HOHUP 0.55 205 16.98 19.88 92 6.6
SKPRES 1.87 2292 7.47 23.93 93 10.6
SERBADK 3.44 4588 7.92 19.92 94 10.1
FREIGHT* 1.23 229 12.76 6.92 95 10.2
ANNJOO 3.7 1883 10.94 16.23 96 11.6
DANCO [NS] 0.42 129 11.16 10.06 97 4.7
MICROLN 0.645 111 12.32 0.82 98 6.5
UOADEV 2.61 4522 9.85 11.62 99 13.1
CHINWEL* 1.69 505 10.98 9.89 100 7.3
OCNCASH 0.58 129 8.99 13.64 101 11.1
WILLOW* 1.18 286 8.65 14.23 102 10.3
MARCO [NS] 0.135 142 12.46 10.28 103 6.9
IQGROUP 1.73 150 9.89 19.11 104 9.8
AHEALTH* 4.99 584 8.68 11.65 105 9.6
FAREAST* 8.5 1201 10.69 9.42 106 10.3
GESHEN 1.16 89 13.43 14.1 107 4.6
LBS* 1.08 716 20.14 6.25 108 8.6
ORIENT [NS] 6.48 4020 16.12 4.79 109 8.4
SYF* 0.365 226 13.87 6.76 110 5.9
REXIT [NS] 0.765 136 6.91 21.79 111 8.8
UCREST 0.425 144 6.23 36.51 112 5.6
CSCENIC 1.59 191 8.54 13.73 113 3.5
HUPSENG* 1.1 881 6.39 25.67 114 4.8
CARLSBG [NS] 18.08 5526 6.07 71.26 115 12.9
ASTRO [NS] 2.51 13102 7.08 14.85 116 5.5
SCIENTX 8.67 4193 8.13 13.87 117 13.1
TAANN* 3.29 1463 12.32 7.38 118 7.7
COCOLND* 2.55 582 7.15 19.81 119 11.7
JFTECH* 0.915 115 6.63 21.1 120 8.3
PCHEM 8.11 62696 7.76 11.25 121 11.1
ATTA 0.98 149 9.89 12.95 122 9.7
SAMCHEM [NS]* 1.19 265 10.43 8.73 123 11.4
MAGNUM [NS] 1.9 2701 13.04 5.79 124 10.2
CAB* 0.96 586 10.56 13.43 125 13.5
RHONEMA [NS] 0.9 149 10.43 8.59 126 5.6
PANTECH* 0.615 454 12.29 5.3 127 8.0
HEIM [NS] 21.2 6403 5.85 71.72 128 15.2
UNISEM 2.78 2041 8.9 10.79 129 7.1
RGB [NS]* 0.285 381 8.63 11.58 130 8.7
COMFORT* 1.14 636 6.96 13.37 131 9.0
PARAMON* 1.9 806 11.65 4.84 132 13.6