Sentences with phrase «metric 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.
https://www.valuesignals.com/ Not exact matches
The Quality and Price strategy, like the Magic Formula, seeks to differentiate between stocks by equally weighting the quality and price metrics.
We want to know whether there are other, more predictive price and quality metrics than those used by Magic Formula and Quality and Price.
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.
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.
From 1974 to 2011, that metric outperforms the Magic Formula by 2.01 %.
Carlisle dissects Joel Greenblatt's magic formula explaining in detail why it works so well, but also why it is not a perfect valuation metric.
We want to know whether there are other, more predictive price and quality metrics than those used by Magic Formula and Quality and Price.