The BCS Index: How it Works for Investors
BCS World of Investments began calculating the BCS Index by applying market data analysis and algorithmic financial modeling. The goal is to help investors assess the potential of a security and make informed decisions about buying or selling it based on objective signals from the index.
The index is available to users of the BCS World of Investments mobile app and is shown on the security card. It is planned to appear in the web account in the near future.
The BCS Index relies on a distinctive methodology that evaluates Russian stocks through four groups of indicators. The first group covers Business Indicators, focusing on the company’s profitability, debt levels, and growth forecasts; the second group measures Price Potential to show how undervalued or overvalued a stock may be; the third group analyzes Trading History through technical patterns and price trends to gauge future moves; the fourth group presents an Analytical View formed from assessments by teams at leading Russian banks and brokerage firms. This component reflects security experts’ forecasts and market insights.
After data is collected and processed, each stock is assigned a score on a 1 to 10 scale.
Stocks with a low score fall into the 1–2 range, mid-range assets cluster from 3 to 7, and stronger candidates reach 8 to 10. Stocks with higher indices tend to participate more in market rallies and may offer faster growth when the market rises, making them appealing for purchase. They also tend to decline more slowly during downturns, potentially preserving capital. Mid-range stocks typically mirror overall market movements, while those with low scores may be more suitable for conservative strategies, including cautious shorts when conditions favor it.
BCS Index is a mathematically calculated indicator grounded in statistical data across multiple parameters. It provides an objective, multi-factor assessment that complements traditional security analysis.
From an investor’s viewpoint, the BCS Index serves as an additional tool to save time that would otherwise be spent on in-depth examination of a security’s financial indicators. It can also function as a helpful filter for those building a portfolio, rebalancing in response to changing market conditions, or pursuing alignment with personal investment goals. The index offers a practical way to compare opportunities and refine decision making without sacrificing thoroughness.
In practice, the BCS Index supports decisions by spotlighting securities with stronger potential while offering a framework for risk-aware strategies. It is designed to be used alongside other research methods, enabling investors to interpret market signals with greater clarity. (Source: BCS internal methodology and market experience)