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LongFundamentalneutralEvidence B · Practitioner overlay

Magic Formula

What it finds: Greenblatt-style 'Magic Formula' — high ROE compounders trading at a cheap earnings multiple, with manageable leverage and a real trend pulse. • Best market conditions: Mid-cycle and early-recovery tapes where value re-rates. • Typical trigger: ROE ≥ 20%, PE ≤ 15, D/E ≤ 1, price above SMA-200.

Joel Greenblatt 'The Little Book That Beats the Market' — combined earnings-yield × ROIC ranking; we approximate with PE + ROE thresholds.

Filter breakdown

  • Price ≥ $10
  • Avg dollar-volume ≥ $5M
  • Above 200-SMA
  • P/E ≤ 15
  • ROE ≥ 0.2%
  • Debt / Equity ≤ 1

How to use this screen

Click Apply this screen to open the Screener pre-loaded with these filters. Re-rank the results by your preferred metric (Stockscore, Master Rank, RS Rank), then open any ticker for the full chart, factor breakdown, options-sentiment overlay and insider-buying history.

Screens are deterministic snapshots — they recompute every market day against the latest factor table. Save a copy in the Screener to tune thresholds for your own playbook.

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