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A Stock Screening Philosophy Based on Cash Flow, Growth, Margins, and Returns [4 Big Filters]

Investors seeking a robust stock screening philosophy can turn to a comprehensive approach based on cash flow, growth, margin, and return. This strategy emphasizes the importance of positive cash flow from operations, high sales growth, strong gross margin, and superior return on equity (ROE). By evaluating stocks against these parameters, investors can identify companies with…

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The Magic Formula of Stock Screening by Joel Greenblatt

The purpose of this blog is to highlight the use of the Magic Formula. Joel Greenblatt published the concept in his book called “The Little Book That Beats The Market” in 2006. The author shared a straightforward methodology to screen stocks of profitable companies available at a comparatively undervalued price. Undervaluation is measured using earning…