I purchased THE LITTLE BOOK THAT BEATS THE MARKET (very interesting). I went to the website and figured out how to generate a list of the top 25, 50, 100 companies that fit the "magic formula".
However: I do not understand how to simply calculate the Return on Capital (which he describes as EBIT/(net working capital + net fixed assets) and Earnings Yield (which he describes as market value of equity + net interest bearing debt).
I want to calculate these numbers on stocks that I already own so that I can see how they stack up against other companies. Does anyone know how I do this? Do I have to do each of them by hand? If so, how do I do them?
Any help would be greatly appreciated.
However: I do not understand how to simply calculate the Return on Capital (which he describes as EBIT/(net working capital + net fixed assets) and Earnings Yield (which he describes as market value of equity + net interest bearing debt).
I want to calculate these numbers on stocks that I already own so that I can see how they stack up against other companies. Does anyone know how I do this? Do I have to do each of them by hand? If so, how do I do them?
Any help would be greatly appreciated.
