Magic Formula Investing

Magic Formula Investing

Last Updated: Tue, 21 Aug 2018 17:04:51

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
PETRONM 7.98 2154 27.96 29.28 1 9.7
HENGYUAN [NS] 7.2 2160 24.92 28.55 2 8.0
GKENT* 1.31 737 23.62 27.21 3 8.3
KUCHAI [NS] 2.12 260 38.34 18.17 4 9.5
HUAAN* 0.3 331 19.53 18.21 5 3.6
KEN 0.765 145 40.17 14.72 6 6.2
MATRIX* 2.1 1579 18.61 17.45 7 9.2
LIIHEN* 2.99 538 15.78 21.15 8 10.1
GADANG* 0.755 499 33.09 13.61 9 7.6
POHUAT* 1.45 337 15.28 21.09 10 8.0
SUCCESS* 0.88 217 21.98 14.78 11 7.0
MAGNI* 4.78 774 15.4 19.66 12 10.8
TAMBUN* 0.99 428 25.3 13.1 13 8.8
IDEAL 1.32 145 51.55 12.48 14 9.1
LEONFB [NS]* 0.685 210 16.74 15.2 15 9.9
AIRASIA [NS] 3.49 11660 13.53 23.98 16 10.7
PRESTAR* 0.86 174 14.69 15.85 17 5.4
SEG [NS]* 0.655 821 11.85 24.22 18 8.3
AWC* 0.805 218 16.52 12.04 19 9.6
PRLEXUS 0.73 131 20.8 10.51 20 8.4
MBWORLD* 1.73 271 11.4 23.2 21 7.9
KGB 0.825 207 13.39 15.03 22 8.1
ARANK 0.735 88 17.44 10.78 23 5.4
IWCITY* 0.79 661 18.47 10.48 24 7.6
OIB* 2.05 315 17.22 10.85 25 4.2
OKA* 1.38 224 13.47 14.28 26 9.1
LITRAK 4.87 2566 11.86 16.98 27 10.0
SUNSURIA* 0.93 742 20.65 9.92 28 6.7
DBHD 0.385 120 21.38 9.44 29 5.0
SKPRES 1.33 1662 10.41 24.89 30 5.8
ORNA 1.31 98 16.2 10.3 31 8.2
FAJAR* 0.51 188 46.84 8.66 32 6.4
FPI [NS]* 1.45 358 12.72 13.19 33 9.9
KIMLUN* 1.43 473 16.72 10.01 34 5.1
TONGHER* 3.63 569 12.68 13.3 35 9.5
SCC [NS] 0.495 68 11.66 15.39 36 6.0
GBGAQRS* 1.23 607 13.39 12.27 37 6.7
CHOOBEE* 1.9 248 20.52 9.02 38 6.2
BJTOTO [NS] 2.26 3053 11.3 15.08 39 4.1
OPENSYS 0.31 90 13.63 11.08 40 9.6
DELEUM* 0.94 375 15.86 9.58 41 4.6
ECS* 1.02 183 17.8 9.06 42 3.9
HOMERIZ* 0.755 226 10.97 15.51 43 8.6
ALLIANZ [NS] 13.1 2305 14.55 10.29 44 13.0
SOP 3.11 1772 16.02 9.42 45 6.7
WONG 0.91 82 14.14 10.37 46 8.7
RHONEMA [NS] 0.835 137 11.69 13.34 47 5.3
LYSAGHT [NS] 2.95 120 14.96 9.93 48 5.1
ECONBHD* 0.88 1170 9.27 24.34 49 9.3
MMSV* 1.62 262 8.47 37.63 50 10.4
YOCB 1.24 198 12.02 11.78 51 11.1
KARYON 0.205 97 12.16 11.16 52 7.6
DANCO 0.44 129 12.3 11.08 53 9.5
MSNIAGA 1.13 67 12.01 11.38 54 4.2
SAMCHEM [NS]* 0.975 265 9.55 17.4 55 6.6
SDRED [NS]* 0.81 345 26.8 7.4 56 7.2
EDGENTA 2.37 1969 7.89 29.32 57 10.1
ASTRO [NS] 1.85 9644 9.02 19.42 58 8.6
HARBOUR* 0.705 279 15.76 8.36 59 4.0
LIONIND* 1.06 760 21.22 7.39 60 7.0
ASTINO* 0.895 243 16.92 7.74 61 8.5
DUFU* 2.04 357 8.48 21.21 62 12.2
PPHB 0.585 109 19.35 7.48 64 6.3
ANNJOO 1.95 1088 13.69 9.13 65 4.7
MFCB* 3.56 1463 13.86 8.7 67 9.1
TGUAN* 3.05 414 13.58 9.06 68 8.8
INNO* 0.805 382 11.81 10.36 69 7.9
KMLOONG [NS]* 1.34 1252 11.46 10.94 70 10.6
3A* 0.89 436 11.56 10.67 71 4.9
FAVCO* 2.66 587 13.57 8.95 72 10.0