FRRVF - Greenblatt's Formula For Spanish IBEX35
The Magic Formula and its methodology
Mr. Greenblatt has become known among other things by his magic formula, in principle a useful tool to easily set up an investment portfolio in a consistent and recurring way.
It is a fairly simple system based on a double ranking made from two ratios. The rank of each company under both ratios is added to determine the formula value for that company.
The logic behind it, is that the highest position in the combined ranking (the lowest value of the formula) is given for cheaper companies that