BCS World of Investments began calculating the BCS Index based on analysis of market data and algorithmic financial modeling methods. It allows you to evaluate the potential of a security and make an informed investment decision about buying or selling it.
The index is available to BCS World of Investments mobile application users and is displayed on the security card. It will appear in the BCS web account in the future.
The calculation of the BCS Index is based on a unique methodology – analysis of Russian stocks according to 4 groups of indicators: Business indicators of the company. The following are evaluated: profitability, debt burden, growth forecasts; Price potential. The benchmark indicates how undervalued or overvalued the company is; Trading history. Technical analysis and price dynamics will help you understand whether you should expect prices to rise or fall in the future; Analytical view of teams of leading Russian banks and brokers. Security experts’ prediction.
After data collection and processing, each stock receives an index from 1 to 10.
Weak securities have an index of 1-2, average ones have an index of 3 to 7, and strong ones have an index of 8 to 10. Highly indexed stocks can grow faster than others when the market grows and are therefore potentially interesting to buy. They tend to fall slower than others when the market falls, which can save investors money. Average ones usually rise and fall with the market, and stocks with a low index will be the best option for shorting.
“BCS Index” is a mathematically calculated indicator based on statistical data on various parameters, therefore it is an objective, multi-factor assessment when analyzing securities.
For an investor, this is an additional measure that will allow you not to waste time on a long study of the issuer’s financial indicators in order to choose the most suitable investment instrument. Additionally, the BCS Index can be a suitable filter for those who are simply building an investment portfolio or planning to rebalance based on market conditions and personal goals.