Sentences with phrase «magic formula return»

Not exact matches

I have had the same underperformance in the Euro - Zone over the last 1.5 years (a short period, I know), while those offering the European «Magic» - Formula - Screen claim to have made clear double digit returns....

3) You can follow the magic formula, and buy stocks that have high returns on equity and low P / E ratios.

His Magic Formula Investing filters on high earnings yields and also high return on capital.

I tested the «magic formula» from Joel Greenblatt for european companies (MSCI Europe as sample)- the result was: no significant return difference between the magic formula und a simple value strategy.

In short, Magic Formula has slightly better performance with defensive metrics like volatility and drawdawn, but the superior returns that the Acquirer's Multiple provides proves to be worth it, as encapsulated in metrics like Sharpe Ratio and Calmar Ratio.

I have argued in Deep Value and Quantitative Value that the acquirer's multiple (enterprise value / operating earnings) tends to outperform the better known Magic Formula although it is only one - half of the Magic Formula, which also includes return on invested capital.

The book focuses on a magic formula which is based on two financial ratios - Return on capital and Earnings Yield.

He also shows how buying the top 10 % of stocks in the market as ranked by the magic formula have outperformed the rest of the market and the returns of each successive group outpeform the lower groups.

Joel Greenblatt has researched on the top stock picks using this magic formula and found consistent good returns over long term.

Joel Greenblatt develops a «magic formula» that uses return on capital (ROC)(namely, EBIT / Tangible Capital) as a key metric to select quality value stocks.

Joel Greenblatt, another well - regarded value investor, returned an annualized 40 % between 1985 and 2006 using his «magic formula».

According to Gray and Carlisle, a portfolio of stocks sorted only on the cheapness metric achieves an astounding return of 15.95 % a year and outperforms the two - metric magic formula by more than 2 % per year.

Examination of Gummy's Magic Sum formula shows that stock returns and Safe Withdrawal Rates are intimately connected.

John Mihaljevic presents 9 distinct types of value investment ideas, and how to screen for them: 1) deep value, 2) sum - of - the - parts value, 3) Joel Greenblatt's Magic Formula, 4) jockey stocks, 5) follow the leaders, 6) small stocks, big returns, 7) special situations, 8) equity stubs, and 9) international value investments.

By eliminating companies that earn ordinary or poor returns on capital, the magic formula starts with a group of companies that have a high return on capital.

With high returns on assets and a low P / E it is not surprising that Garmin shows up on Joel Greenblatt's magic formula investing site for the top 30 companies with a market cap over a billion.

Secondly, the back - tested returns to the strategy appear to be considerably higher than those for the Magic Formula.

A while back, I posted a couple articles on return on invested capital (ROIC) along with some comments on Joel Greenblatt's Magic Formula.

The point I was trying to make in the paragraph was that, while Profit and Value's return seems to be higher than the Magic Formula's, that's only half the story.

You write: «Secondly, the back - tested returns to the strategy appear to be considerably higher than those for the Magic Formula.»

The problem with magic formula companies is that too many of the stocks in the top 50 are value traps whose business models aren't sustainable, and are on the list when the past 12 months is a poor predictor of future returns.

As a big fan of the Magic Formula, I have to say I'm secretly hoping that it does have a statistically significant higher average yearly return than the S&P 500...

It's been a while since I first read Joel Greenblatt's The Little Book That Beats the Market, and was bowled over by his Magic Formula «s historical returns versus the S&P 500...

The Joel Greenblatt's Magic Formula makes several adjust when determining return on capital (ROC).

The Magic Formula uses Greenblatt's version of return on invested capital (ROIC) as a proxy for a stock's quality.

What drives the returns of the magic formula?

Joel Greenblatt's Magic Formula takes a similar ranking approach — ranking stocks on EBIT / Enterprise Value and on return on capital.

I'd played Finest Hour on PS2 but Modern Warfare sucked me into the series like no shooter has before or since, particularly in terms of the online multiplayer; it's just a shame that the diminishing returns of the later entries in the franchise and the concerted shift from the formula of the modern day shooter grounded in realism to the hyper - kinetic, futuristic Michael Bay-esque blockbuster failed, in my personal opinion, to effectively recapture the magic of the first Modern Warfare title.