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Joel Greenblatt's MAGIC FORMULA Screen for Indian Stocks with Additional filtering for Quality.

#Thread

5th Upd -08Nov2020

Added HOW TO USE Magic Formula & some more updates, so do read till end.

#MagicFormula #Stocks #Indianstocks #JoelGreenblatt

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đź“ŚMagic formula =Good Stocks At Attractive Prices

Higher Earnings Yield = Undervalued Stock

Higher ROIC/ROCE= Better Quality

Rank stocks on ROIC/ROCE (1 for Highest ROIC/ROCE)

Rank on Earning Yields (1 for Highest EY)

SUM the Ranks

RE-RANK on Combined score(1 for Lowest)

2
Additonal Filtering -

Good ROCE/ROIC over a period of time. Min 22%.

Attractive Earnings Yield > 10YrGSec(5.88%).

Good Operating Cash Flow over a period of time.

Good Asset turnover ratio/Management Efficiency.

Stable Promoter holding.

3
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