Forbes' 200 Best Small Companies Through the Magic Formula Screen [View article]
Sure. The earnings yield is meant to be compared against other investment vehicles like bonds. Anything over 10% is cheap, and anything over 17% or so is very cheap.
For MFI return on capital, anything over 100% I would consider very high, 60-100% quite high.
For large-cap, blue chip stocks like KO or PG, you usually see an earnings yield around 6-7% and ROIC in the 30-40% range.
On Dec 02 10:59 AM TATyszka wrote:
> Not everyone is hip to this Magic Formula. You think you could give > us a little perspective? What's a good score? As low as possible? > As high as possible? A particular range?
Graco -- A Little Known Superstar (GGG) [View article]
Graco is a good company - dominates it's market niche, well run, financially healthy, sells replacement products (a repeat business). They also have a good international exposure for growth. Ranked highly on the Magic Formula screen. More analysis:
Forbes' 200 Best Small Companies Through the Magic Formula Screen [View article]
For MFI return on capital, anything over 100% I would consider very high, 60-100% quite high.
For large-cap, blue chip stocks like KO or PG, you usually see an earnings yield around 6-7% and ROIC in the 30-40% range.
On Dec 02 10:59 AM TATyszka wrote:
> Not everyone is hip to this Magic Formula. You think you could give
> us a little perspective? What's a good score? As low as possible?
> As high as possible? A particular range?
Graco -- A Little Known Superstar (GGG) [View article]
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