What does Magic Formula Rank mean?
This is the actual (as opposed to percentile) ranking of a stock according to Joel Greenblatt's Magic Formula. It sums its Earnings Yield and Return on Capital rankings, so a company that was 14th on an EY basis and 96th on an ROC basis would have a score of 110th. Theoretically, the best company would have a score of 2nd but that assumes that it is top of both lists, which is unlikely.
For the purposes of this calculation, only companies above a market capitalisation of £10m are included (Greenblatt uses a threshold of $50m).