Quality value
Good businesses at low prices, in the spirit of the Magic Formula.
2023-04-03 to 2026-11-06, 100,000 EUR to 108,668 EUR, after 969 EUR in trading costs. On average 10.0 stocks held; the portfolio is turned over 2.7 times a year.
This strategy uses annual report figures, which our data has from 2023, so its results start then rather than ten years back.
How it works
Every quarter, keep liquid companies with a return on equity of at least 15% and net debt under two times EBITDA, and buy the ten with the lowest EV/EBITDA.
The idea
Joel Greenblatt's Magic Formula buys high-return companies at low valuations. Requiring quality filters out many of the value traps that pure low-P/E strategies end up in.
Equity (EUR)
Year by year
| Year | Quality value | Benchmark | Difference |
|---|---|---|---|
| 2026 (part of year) | +1.7% | −0.9% | +2.6% |
| 2025 | +10.3% | +21.1% | −10.8% |
| 2024 | −3.8% | −0.7% | −3.0% |
| 2023 (part of year) | +0.7% | −0.0% | +0.7% |
Backtests are simulations on historical data, not investment advice. Past results don't guarantee future returns.