Magic Formula Investing

Magic Formula Investing

Last Updated: Fri, 22 Jun 2018 17:02:46

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] 6.43 1929 34.82 29.87 1 4.4
IDEAL 0.915 100 45.13 23.24 2 10.7
PETRONM 7.45 2011 31.78 24.39 3 7.4
GKENT* 1.32 743 22.25 26.79 4 9.1
KUCHAI [NS] 2.18 268 35.97 18.27 5 7.1
HUAAN* 0.32 359 21.41 23.96 6 5.9
LIIHEN* 2.4 432 23.18 20.63 7 9.5
KEN 0.83 158 34.4 14.81 8 6.6
GADANG* 0.725 479 34.14 14.57 9 8.2
HOMERIZ* 0.62 186 18.29 17.99 10 6.2
MAGNI* 5.1 826 15.49 24.08 11 10.4
POHUAT* 1.3 302 21.43 15.43 12 8.4
DUFU* 1.04 182 15.89 17.98 13 6.3
MATRIX* 2.02 1519 17.12 16.07 14 9.7
LEONFB [NS]* 0.655 202 16.28 15.21 15 6.3
TAMBUN* 0.8 346 32.09 12.13 16 6.8
JAYCORP 0.885 121 24.42 12.14 17 6.7
SUNSURIA* 0.99 790 19.64 13.09 18 6.8
SEG [NS]* 0.65 821 11.76 46.57 19 5.9
OKA* 1.28 208 15.04 14.0 20 7.0
AWC* 0.685 186 18.38 12.38 21 8.0
IWCITY* 0.53 443 24.34 10.48 22 4.4
WONG 0.94 85 13.3 17.61 23 7.4
ARANK 0.745 89 17.44 11.17 24 6.3
KIMLUN* 1.36 435 19.17 10.44 25 6.2
ECONBHD* 0.73 976 11.35 25.25 26 8.9
VIS 0.5 84 12.07 18.43 27 10.9
DBHD 0.445 141 14.32 12.94 28 5.1
FAJAR* 0.4 149 77.87 8.54 29 4.7
LITRAK 4.43 2334 12.35 16.97 30 9.5
LYSAGHT [NS] 3.26 133 15.14 11.82 31 7.5
KGB 0.81 198 11.68 17.97 32 10.5
CCK* 0.94 592 13.57 13.24 33 12.0
ECS* 1.06 190 18.81 9.48 34 4.7
OIB* 2.1 323 19.3 9.21 35 5.6
OPENSYS 0.27 80 13.16 13.64 36 6.8
IBHD* 0.49 493 19.36 9.1 37 6.2
INTA 0.325 173 11.22 17.44 38 7.9
GBGAQRS* 1.14 541 16.09 9.28 39 5.8
TONGHER* 3.34 524 13.7 11.4 40 5.8
CHOOBEE* 2.29 249 20.85 8.38 41 4.6
KMLOONG [NS]* 1.3 1215 11.97 13.96 42 10.3
ARREIT [NS]* 0.85 487 13.54 11.09 44 5.7
ASTINO* 0.795 217 18.46 8.46 45 6.6
FPI [NS]* 1.4 345 11.76 13.89 46 9.1
INNO* 0.8 382 14.55 9.76 47 5.7
BJTOTO [NS] 2.47 3336 10.66 17.66 48 6.0
LIONIND* 0.925 663 27.81 7.59 49 6.6
MMSV* 1.44 234 9.02 36.06 50 9.1
PRESTAR* 0.865 176 19.26 8.14 51 6.5
DELEUM* 1.02 408 14.58 9.22 52 7.0
TGUAN* 2.55 346 16.06 8.57 53 6.7
3A* 0.95 466 12.42 12.14 54 7.1
ASTRO [NS] 1.6 8340 9.83 19.39 55 6.3
DANCO 0.37 109 13.35 10.39 56 5.5
HEVEA* 0.79 442 14.59 8.87 57 5.9
SCC [NS] 0.51 71 11.17 14.45 58 7.4
KAB 0.27 86 10.23 16.89 59 6.2
EDGENTA 2.04 1695 8.95 29.32 60 5.4
YOCB 1.21 193 12.21 11.78 61 9.2
MFCB* 3.63 1488 14.16 9.09 62 11.2
LUXCHEM* 0.62 531 10.66 14.12 63 6.4
SSTEEL [NS]* 1.67 723 12.72 10.43 64 5.7
SKPRES 1.42 1775 8.93 24.07 65 6.7
ANNJOO 2.11 1177 13.02 9.33 66 4.6
ALLIANZ [NS] 12.66 2215 12.88 9.66 67 9.3
SUCCESS* 0.84 208 22.71 7.03 68 7.2
AIRASIA [NS] 3.1 10456 9.61 15.71 69 9.2
KARYON 0.17 80 11.41 11.56 70 4.9
SDRED [NS]* 0.75 319 27.77 6.6 71 5.1