Fórmula Joel · educational backtest

Backtest the Magic Formula with historical Brazil and US data

A free, open tool to study a strategy inspired by Joel Greenblatt’s Magic Formula. Built on public filings (CVM and SEC) and historical prices from B3 and the US — compare against the index, with no buy recommendations.

Open simulator How the formula works

Free and open — no sign-up.

Methodology

Two indicators, one ranking

The idea (inspired by Greenblatt): combine cheap and good. Each stock gets an EY rank and a ROC rank; the sum builds the simulated portfolio ranking.

Earnings Yield

Price

EBIT / Enterprise Value

How much operating profit the company earns relative to the cost to buy it.

Return on Capital

Quality

EBIT / (Working Capital + Net Fixed Assets)

How well the company turns invested capital into operating profit.

Output

Rebalanced ranking

Top-ranked names form an equal-weight portfolio; you choose how many stocks, the period, and rebalance frequency.

Full article on the formula

Current ranking

Top 30 by Magic Formula ranking

Universe stocks ranked by Earnings Yield (EY = EBIT ÷ EV) and Return on Capital (ROC). Higher EY means cheaper operating earnings relative to enterprise value; ROC measures capital efficiency. Download the CSV and filter in your own workflow — this is for study, not a buy list.

Download full CSV

Prices as of 2026-10-30 · fundamentals 2025 · 295 eligible stocks

#	Ticker	Company	Sector	EY (EBIT/EV)	ROC	EY rank	ROC rank	Score
1	DOTZ3	Dotz S.A.	Communication Services	62.1%	28.5%	3	7	10
2	BOBR4	Bombril S.A.	Consumer Defensive	38.2%	33.0%	9	6	15
3	RSUL4	Metalúrgica Riosulense S.A.	Consumer Cyclical	44.4%	24.5%	5	12	17
4	SOND6	Sondotécnica Engenharia de Solos S.A.	Industrials	27.8%	51.8%	16	2	18
5	LREN3	Lojas Renner S.A.	Consumer Cyclical	44.4%	23.5%	6	13	19
6	QUAL3	Qualicorp Consultoria e Corretora de Seguros S.A.	Healthcare	51.0%	22.6%	4	16	20
7	MNPR3	Minupar Participações S.A.	Consumer Defensive	42.9%	20.0%	7	21	28
8	ASAI3	Sendas Distribuidora S.A.	Consumer Defensive	29.8%	21.2%	13	18	31
9	BALM4	Baumer S.A.	Healthcare	35.8%	17.4%	11	27	38
10	SEER3	Ser Educacional S.A.	Consumer Defensive	28.8%	17.0%	14	29	43
11	PETR4	Petróleo Brasileiro S.A. - Petrobras	Energy	23.8%	19.7%	24	22	46
12	WHRL4	Whirlpool S.A.	Consumer Cyclical	20.2%	24.6%	35	11	46
13	LEVE3	MAHLE Metal Leve S.A.	Consumer Cyclical	18.0%	34.5%	46	5	51
14	HOOT4	Hotéis Othon S.A.	Consumer Cyclical	78.7%	12.3%	2	49	51
15	OFSA3	Ouro Fino Saúde Animal Participações S.A.	Healthcare	18.8%	25.9%	43	10	53
16	VLID3	Valid Soluções S.A.	Industrials	27.5%	15.7%	17	36	53
17	POMO4	Marcopolo S.A.	Industrials	20.8%	18.4%	31	24	55
18	CAMB3	Cambuci S.A.	Consumer Cyclical	21.6%	16.8%	28	30	58
19	BEEF3	Minerva S.A.	Consumer Defensive	22.2%	16.6%	27	32	59
20	CSED3	Cruzeiro do Sul Educacional S.A.	Consumer Defensive	27.1%	14.9%	19	41	60
21	PGMN3	Empreendimentos Pague Menos S.A.	Healthcare	28.4%	12.8%	15	47	62
22	ANIM3	Ânima Holding S.A.	Consumer Defensive	24.4%	14.6%	23	43	66
23	TECN3	Technos S.A.	Consumer Cyclical	21.2%	15.6%	29	37	66
24	UGPA3	Ultrapar Participações S.A.	Energy	16.6%	21.5%	51	17	68
25	GOAU4	Metalurgica Gerdau S.A.	Basic Materials	36.6%	11.5%	10	60	70
26	VALE3	Vale S.A.	Basic Materials	19.6%	16.5%	39	33	72
27	TFCO4	Track & Field Co S.A.	Consumer Cyclical	13.9%	27.1%	65	8	73
28	TGMA3	Tegma Gestão Logística S.A.	Industrials	14.1%	27.0%	64	9	73
29	VIVA3	Vivara Participações S.A.	Consumer Cyclical	17.9%	17.3%	47	28	75
30	VAMO3	Vamos Locação de Caminhões, Máquinas e Equipamentos S.A.	Industrials	18.9%	15.7%	40	35	75

Scroll to see all 30 stocks

EY = EBIT/EV (inverse of EV/EBIT). Greenblatt-style ROC: EBIT ÷ (working capital + net fixed assets) — related to, but not identical to, common ROIC. Brazil live ranks may use Fundamentus ROIC as a proxy; the simulator uses the classic formula when the balance sheet is available.

Run a portfolio backtest

Data transparency

Real numbers, not marketing

We work with public market data and official financial statements — Brazil and the United States — so you can see where rankings and simulations come from.

Metric	Brasil	United States
Stocks in universe	969	505
Historical quotes	1,637,574	1,254,465
Fundamental records	3,928	5,499
Data updated through	2026-10-30	2026-10-30

What the simulator does — and doesn't

Does

Ranks stocks by Earnings Yield and Return on Capital (Magic Formula).
Uses prior fiscal-year statements and prices at rebalance date — no look-ahead.
Compares the simulated portfolio to Ibovespa (BOVA11) or S&P 500 (IVV).
Shows the current ranking of eligible stocks and lets you download the list as CSV.

Does not

Does not predict the future or recommend buying or selling any stock.
Does not include brokerage fees, taxes, dividends, or slippage.
Does not replace financial advice or individual company analysis.

Read the full methodology article

Educational tool

This is a study tool, not investment advice.

Fórmula Joel is independent and is not an official Joel Greenblatt or Magic Formula Investing product. It exists so you can learn and experiment with the Magic Formula methodology using historical data. Nothing here is financial advice, an offer, or a recommendation to buy or sell any asset. Past performance does not guarantee future results. Investment decisions are your own responsibility — consult a licensed professional.

Open the simulator and test on history

Pick period, contributions, and market (Brazil or US). See how an equal-weight formula portfolio behaved versus the index — free, no account.

Open simulator