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 list shows NYSE and Nasdaq stocks with an enterprise value below 10 times EBIT (an earnings yield above 10%) and a return on invested capital above 20%, cheapest first. Penny stocks and illiquid names are excluded.
