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
PESONA* 0.405 269 8.58 13.41 133 8.8
WELLCAL* 1.56 778 5.88 34.86 134 11.0
AIRASIA [NS] 4.43 14825 7.9 13.69 135 16.3
YSPSAH* 2.53 345 9.27 9.41 136 8.4
PADINI 5.15 3384 5.85 30.35 137 10.0
MAHSING 1.27 3818 9.66 6.65 138 6.5
ORNA 1.31 97 13.09 5.53 140 6.7
MKH* 1.66 878 14.92 5.69 141 6.5
SAB* 4.14 566 11.17 7.24 142 7.5
SSTEEL [NS]* 2.26 977 9.21 8.98 143 10.4
DLADY 66.48 4255 5.38 92.39 144 10.9
PWROOT* 1.7 550 6.98 17.77 145 6.1
AYS 0.42 159 13.06 12.17 146 7.7
DEGEM 0.985 128 34.53 3.64 147 9.1
FRONTKN* 0.48 501 8.52 7.35 148 7.9
ULICORP* 2.9 420 9.68 8.43 149 6.0
XINGHE 0.06 141 23.19 4.53 150 7.0