Magic Formula® · Criteria after Joel Greenblatt
Ranks the universe on EBIT/EV earnings yield and Greenblatt return on capital, then sums the two ranks. Financials, utilities and ADRs excluded; minimum market cap $200M.
Tenet's independent, mechanical implementation of criteria published in Joel Greenblatt, The Little Book That Beats the Market (2005).
Top 5 by combined rank · 25 more with Premium
What is the Tenet Score? →| 1 | PURR | Hyperliquid Strategies Inc. | 336.6%#18 of 1,219 | 59.5%#1 of 1,219 | 19 | 86 |
| 2 | NRP | Natural Resource Partners LP | 278.0%#26 of 1,219 | 25.2%#5 of 1,219 | 31 | 79 |
| 3 | HRB | H&R Block Inc. | 331.8%#19 of 1,219 | 16.3%#31 of 1,219 | 50 | 62 |
| 4 | PXED | Phoenix Education Partners Inc | 127.9%#81 of 1,219 | 19.7%#13 of 1,219 | 94 | 67 |
| 5 | ADT | ADT Inc | 743.7%#8 of 1,219 | 10.9%#111 of 1,219 | 119 | 56 |
Common questions
What is the Magic Formula?
Joel Greenblatt's ranking system from The Little Book That Beats the Market (2005): rank all stocks by earnings yield (EBIT ÷ enterprise value) and by return on capital (EBIT ÷ net working capital + net fixed assets), sum the two ranks, and the top-ranked names form the list.
Which stocks lead the Magic Formula ranking in 2026?
Tenet recomputes the ranking nightly across US stocks (excluding financials, utilities and ADRs, minimum $200M market cap). The current top-30 list, led by Hyperliquid Strategies Inc., publishes the top 5 of the ranking in the free view, each with its earnings yield, return on capital and both rank legs, and the rest with Premium.
How is Magic Formula earnings yield calculated?
EBIT ÷ enterprise value, not net income ÷ market cap, which many sites substitute. Enterprise value adds debt and subtracts cash, so the yield reflects what an acquirer of the whole business would earn. Tenet computes it from raw statements.
How does Tenet implement the Magic Formula criteria, and how is the list tracked?
Tenet ranks US stocks on two numbers, EBIT divided by enterprise value and return on capital, sums the two ranks and publishes the top names. The ranking recomputes nightly and every name shows its rank inputs.