Joel Greenblatt's Magic Formula buys good companies at bargain prices: a high return on capital shows a good business and a high earnings yield shows a cheap price. This is an approximation of his ranking method. This screen lists stocks on the London Stock Exchange with an enterprise value below 10 times EBIT (an earnings yield above 10%) and a return on invested capital above 20%, cheapest first. LSE prices are quoted in pence, and the list skips thinly traded shares.
