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Magic formula rank: what it means and how to read it
Joel Greenblatt's ranking: companies scored on both earnings yield and return on capital. 1 is the best combination.
What is Magic formula rank?
Joel Greenblatt's ranking: companies scored on both earnings yield and return on capital. 1 is the best combination.
A worked example
A company ranked 20th on earnings yield and 35th on return on capital has a combined 55. The lowest combined score is rank 1: cheap and good together.
Why does Magic formula rank matter?
Finds good businesses at fair prices in one number.
How do you read Magic formula rank?
Lower ranks are better.
Lower is usually better.
What is a typical Magic formula rank in India today?
The median across the 3589 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 71 companies6
Mid Cap · 116 companies6
Small Cap · 3402 companies8
By industry
Median, largest industries first
Pharmaceuticals · 15910
Computers - Software & Consulting · 508
Refineries & Marketing · 85
Power Generation · 266
Heavy Electrical Equipment · 418
Auto Components & Equipments · 10912
Cement & Cement Products · 287
Civil Construction · 10512
Aerospace & Defense · 287
Iron & Steel · 126
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.