Magic Formula

June 23, 2008

I have posted before about Magic Formula investing, with the help of Digital Look I have prepared a table of magic formula type shares in the UK.

I ranked companies by their ROCE, then by P/E, then combined the ranks giving a high rank to those with both a high ROCE and a low P/E.

The top 19 companies are:

Company ROCE P/E
Sport Media Group 129.06% 2
New Star Asset Management Group 290.10% 2.8
Charlemagne Capital 122.89% 3.3
Creston 107.44% 3
Synarbor 84.54% 2.2
Jacques Vert 108.37% 3.4
RDF Group 81.49% 2.5
Garner 483.33% 4.4
Yell Group 70.85% 2.3
Belgravium Technologies 125.06% 3.9
Somero Enterprises (Reg S) 86.60% 3.5
OPD Group 118.41% 4.1
Lincat Group 82.95% 3.6
Litcomp 79.18% 3.6
Celtic 68.53% 3.2
Castle Support Services 86.39% 4.1
Topps Tiles 82.28% 4.6
Solid State 75.17% 4.4
Avingtrans 75.09% 4.4