Magic Formula Investing

Magic Formula Investing

Last Updated: Wed, 20 Jun 2018 17:02:34

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
EITA* 1.3 169 13.08 8.86 72 11.5
SCIENTX 6.71 3274 10.01 13.68 73 10.2
BCMALL [NS] 0.16 67 9.35 14.97 74 5.4
ORNA 1.29 96 15.5 7.46 75 7.1
RGB [NS]* 0.25 336 10.44 13.19 76 7.7
RHONEMA [NS] 0.93 154 10.07 13.47 77 5.7
DKSH* 3.98 624 12.36 9.29 78 8.0
MASTEEL* 0.645 275 13.9 8.34 79 6.3
PPHB 0.6 112 19.27 6.93 80 10.4
ASIAFLE* 2.73 529 11.66 10.11 81 10.3
SHL* 2.48 600 13.43 8.35 82 8.9
CHINWEL* 1.57 469 12.82 8.68 83 7.3
CWG 0.48 60 15.66 7.18 84 7.4
MBWORLD* 1.83 287 8.72 17.7 85 7.9
REXIT [NS] 0.67 126 8.02 24.23 86 7.4
HARBOUR* 0.76 304 12.81 8.47 87 9.8
MITRA* 0.465 416 17.74 6.75 88 9.6
SIGN 0.55 132 11.39 9.96 89 6.9
FREIGHT* 1.1 204 14.13 7.65 90 9.6
MIECO* 0.405 212 14.04 7.58 92 6.5
MAHSING 1.1 2669 13.18 7.96 93 8.1
SOP 3.18 1812 15.68 6.98 94 9.2
MYCRON 0.365 103 42.93 5.65 95 7.1
PRTASCO* 0.495 245 33.07 5.8 96 4.1
ALCOM 0.73 97 14.22 7.27 97 6.3
FAVCO* 2.53 559 11.52 8.88 98 11.5
MIKROMB [NS]* 0.295 127 9.21 13.43 99 6.8
L&G [NS]* 0.185 542 15.2 6.87 100 9.1
FIMACOR* 1.98 485 17.14 6.41 101 7.1
PRLEXUS 0.765 137 17.5 6.25 102 7.2
FRONTKN* 0.45 473 10.22 10.4 103 8.4
INSAS [NS]* 0.885 613 14.06 7.14 104 11.4
SERBADK 3.17 4653 7.56 18.65 105 9.7
COMPLET 0.66 81 14.9 6.57 106 5.9
KERJAYA 1.55 1925 8.54 14.54 107 10.2
COMFORT* 0.855 479 8.36 14.63 108 6.1
GESHEN 0.83 66 17.86 5.96 109 5.2
MYEG 1.0 3606 6.67 34.7 110 9.3
SCICOM* 1.93 685 6.66 35.6 111 11.1
HOHUP 0.415 155 17.6 5.93 112 6.9
MBL 0.905 91 13.95 7.01 113 6.7
MPI 10.5 2194 9.95 10.37 114 10.3
WELLCAL* 1.31 651 6.62 30.78 115 8.4
MNRB [NS]* 2.42 771 12.46 7.46 116 7.1
SUPERLN* 1.57 251 7.79 15.11 117 13.1
CSCSTEL* 1.31 496 14.15 6.58 118 6.3
DEGEM 0.97 129 31.93 5.2 119 6.4
TAKAFUL 3.97 3271 6.84 24.52 120 10.0
ULICORP* 1.34 194 17.4 5.84 121 6.0
BAT [NS] 36.66 10448 6.06 61.68 122 9.7
CAB* 0.925 593 10.55 8.7 123 11.1
EMETALL 0.475 89 14.62 6.02 124 7.1
PANTECH* 0.585 436 12.49 7.16 125 7.9
UMSNGB 1.02 81 14.93 5.96 126 7.4
LATITUD* 3.51 340 21.05 5.25 127 9.6
MMODE [NS] 0.34 55 12.07 7.37 128 7.7
MAGNUM [NS] 2.25 3233 11.45 7.8 130 11.8
ADVCON* 0.445 178 13.59 6.42 131 3.3
HUPSENG* 1.08 862 6.35 26.92 132 6.1
MSNIAGA 1.18 70 8.75 11.54 133 9.0
TEXCYCL* 0.69 176 8.31 12.82 134 14.3
UOADEV 2.52 4369 9.02 10.57 135 9.4
VS 1.58 2659 8.99 10.5 136 7.8
ALAQAR* 1.25 910 9.35 9.36 137 5.2
JHM* 1.01 562 6.47 22.69 140 10.3
KUB* 0.325 177 9.08 9.74 141 4.9
UNISEM 2.57 1883 10.07 8.24 142 9.6
CABNET 0.605 78 8.81 10.22 143 5.2
DIGI 4.36 33899 5.61 51.39 144 6.4
PCHEM 8.39 67120 7.46 13.67 145 10.1