Magic Formula Investing

Magic Formula Investing

Last Updated: Fri, 19 Oct 2018 17:03:25

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.

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Stock Last Price Market Cap EY ROIC Magic Rank Total Score
HENGYUAN [NS] 6.13 1839 29.47 35.39 1 4.2
GKENT* 1.14 641 29.9 28.31 2 7.5
PETRONM 7.55 2038 29.09 23.38 3 8.4
IDEAL 1.13 124 80.14 18.89 4 8.2
HUAAN* 0.27 302 25.67 24.5 5 6.1
KEN 0.775 148 50.34 17.23 6 7.5
AIRASIA [NS] 2.56 8552 16.79 26.36 9 7.8
GDB 0.3 187 15.21 65.23 10 5.7
MATRIX* 1.91 1436 19.16 17.83 11 6.9
GADANG* 0.675 446 39.42 11.48 12 6.1
MAGNI* 4.5 729 16.5 19.27 13 10.4
SEG [NS]* 0.65 821 12.79 46.09 14 7.8
TAMBUN* 0.795 344 27.72 11.05 15 7.0
POHUAT* 1.41 328 17.23 14.82 16 9.3
ARREIT [NS]* 0.83 475 17.78 14.05 17 6.6
SUNSURIA* 0.87 694 22.95 11.6 18 7.1
LIIHEN* 2.96 532 14.64 19.24 19 9.7
INTA 0.325 173 14.49 18.41 20 4.6
HOMERIZ* 0.7 210 12.81 24.81 21 7.4
ARANK 0.79 94 18.12 11.62 22 9.7
GBGAQRS* 0.99 489 21.6 10.53 23 7.0
MBWORLD* 1.58 248 12.85 23.2 24 6.7
UCREST 0.275 127 11.72 45.22 25 5.9
WONG 0.86 78 14.47 15.44 26 6.0
IWCITY* 0.55 460 24.9 9.76 27 4.0
LITRAK 4.01 2113 13.51 16.52 28 8.8
AWC* 0.87 236 16.75 11.25 29 8.5
OKA* 1.05 171 15.97 12.47 30 6.7
OPENSYS 0.325 96 12.92 17.67 31 7.8
LEONFB [NS]* 0.565 174 17.64 10.66 32 4.6
DBHD 0.31 98 24.66 9.44 33 3.6
KUCHAI [NS] 1.91 234 23.56 9.46 34 5.8
YOCB 1.07 171 15.35 11.89 35 9.1
ECS* 0.98 176 17.92 9.94 36 4.3
ECONBHD* 0.665 889 11.17 24.91 37 6.9
CHOOBEE* 1.57 205 26.09 8.96 38 5.7
LIONIND* 0.775 555 35.03 8.55 39 4.2
GCB [NS]* 2.38 1142 11.98 18.66 40 10.9
EITA* 1.24 161 13.82 12.65 41 7.4
BJTOTO [NS] 2.09 2823 11.89 15.91 42 4.3
KIMLUN* 1.15 380 18.36 9.04 43 4.6
KARYON 0.175 83 14.16 10.88 44 6.3
SSTEEL [NS]* 1.2 519 14.42 10.82 45 6.7
ALLIANZ [NS] 12.54 2207 14.85 10.29 46 10.0
KERJAYA 1.17 1451 12.13 13.94 47 10.5
SCC [NS] 0.485 68 11.1 16.8 48 7.1
MMSV* 1.4 228 9.82 26.44 49 8.6
TA [NS]* 0.63 1077 35.6 7.3 50 5.7
HARBOUR* 0.705 282 17.52 8.88 51 5.9
FAVCO* 2.33 514 14.14 10.16 52 6.1
HOHUP 0.385 143 16.13 9.17 53 5.0
RHONEMA [NS] 0.805 133 12.17 12.37 54 5.0
MSNIAGA 0.95 57 14.12 9.94 55 3.9
SKPRES 1.32 1650 10.16 21.45 56 6.3
TAGB [NS]* 0.27 1436 21.15 7.8 57 4.1
FPI [NS]* 1.59 392 11.03 15.37 58 10.3
DANCO 0.465 138 12.6 11.08 59 8.1
COMPLET 0.68 83 20.81 7.54 60 8.4
PPHB 0.54 101 21.27 7.44 61 6.7
DKSH* 3.15 494 14.62 9.22 62 4.9
DOMINAN* 1.29 212 12.37 10.64 63 8.5
LYSAGHT [NS] 2.5 102 13.42 9.8 64 5.6
KGB 1.16 296 10.34 16.29 65 9.7
LUXCHEM* 0.615 529 10.83 13.97 66 7.4
REXIT [NS] 0.64 120 9.12 23.2 67 6.3
RGB [NS]* 0.205 315 10.93 13.45 68 6.2
BAUTO 1.92 2231 7.98 32.41 69 5.0
SDRED [NS]* 0.67 285 20.93 7.01 70 5.3
ANNJOO 1.56 872 15.0 8.75 71 4.6
3A* 0.805 396 11.72 10.5 72 5.9