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Glossary > Magic Formula Rank %

Magic Formula Percentile, Trailing 12m

What does Magic Formula Rank % mean?

This is a percentage measure of where the company ranks in the market according to Joel Greenblatt's Magic Formula (which sums its Earnings Yield and ROCE rankings). The best company would have a score of 100 (this corresponds to an absolute Magic Formula ranking of 1. For the purposes of this calculation, only companies above a market capitalisation of £10m are included.