As Japan is one of the few countries I am still finding a lot of good quality undervalued companies I thought it would be interesting to see what companies the Magic Formula comes up with.
Before I get to the specific company names first a bit of background on the Magic Formula.
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How the Magic Formula find investment ideas?
The Magic Formula helps you find good quality companies that are trading at an attractive price.
It does this by looking for companies with a high earnings yield (companies that are undervalued) and a high return on invested capital (ROIC) (quality companies).
It then ranks the companies on ROIC (where 1 is the company with the highest ROIC), and by earnings yield (where 1 is...
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