How EquityLens Calculates a 1–10 Risk Score

A transparent guide to the EquityLens Investment Risk Score — what the AI-generated 1–10 assessment represents, how the displayed risk bands work, and how investors can use it as research context.

Every EquityLens report includes a single 1–10 Investment Risk Score. It is designed to make a broad set of business and investment risks easier to interpret at a glance. This post explains what the score represents, how the displayed risk bands work, and how to use the number as a starting point for further research.

Why one number at all?

A risk score is a compression, and every compression loses information. We publish it anyway because most investors already carry an implicit score in their head — 'this one feels risky' — and an explicit, comparable number is strictly more useful than a vibe. The score is a starting point for a conversation, not the end of one.

What the score represents

The Investment Risk Score is an AI-generated assessment of a company's overall investment risk. It considers the research available in the report across areas such as financial strength, valuation, management quality, governance, competitive position, industry dynamics and business risks. The platform produces one consolidated integer from 1 to 10; it does not display fixed component weights or separate sub-scores.

• 1 represents the lowest investment risk on the displayed scale.
• 10 represents the highest investment risk on the displayed scale.
• The score should be read together with the report's business analysis, bull case, bear case and key risks.

How to read the number

• 1–2: Very Low Risk.
• 3–4: Low Risk.
• 5–6: Moderate Risk.
• 7–8: High Risk.
• 9–10: Very High Risk.

What the score is not

It is not a probability of default, a price target or an investment recommendation. Two companies with the same score can face different business and investment risks, so the number should never replace reading the underlying report. The bull case, bear case, key risks, valuation commentary and wider business context explain why a company's overall assessment requires further investigation.

See it in a live report

Run a supported listed Indian company through EquityLens to see its overall 1–10 Investment Risk Score, the corresponding risk band and the research context presented alongside it.

For an example of a single score alongside the business and risk analysis, see TCS research.

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