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Magic formula uses two columns sorting method, ROIC and E/P columns, but how do you balance out the best 10 let's say?
Well, the book beat the market again does not tell you how.
Here's the one time sorting method:
ROIC × E/P sorting, the higher the better.
Or
PE/ROIC sorting, the lower the better.
Hope that helps.
Thanks for adding this, I appreciate it! It helps. :-)
Magic formula uses two columns sorting method, ROIC and E/P columns, but how do you balance out the best 10 let's say?
Well, the book beat the market again does not tell you how.
Here's the one time sorting method:
ROIC × E/P sorting, the higher the better.
Or
PE/ROIC sorting, the lower the better.
Hope that helps.
Thanks for adding this, I appreciate it! It helps. :-)