Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-26), Allison Transmission Holdings's Beta is 0.6798.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
Allison Transmission Holdings Beta Related Terms
Allison Transmission Holdings Beta Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Allison Transmission Holdings's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allison Transmission Holdings Beta vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Beta distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Allison Transmission Holdings (FRA:1A7) has a Beta of 0.6798 as of Jun. 26, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Allison Transmission Holdings and its competitors.
Is Allison Transmission Holdings' Beta too high?
Allison Transmission Holdings' current Beta is 0.6798. Overall, Allison Transmission Holdings has a GF Score™ of 95/100, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' Beta compare to ALV and MBLY?
Allison Transmission Holdings' Beta of 0.6798 can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Vehicles & Parts company?
A good Beta depends on the Vehicles & Parts industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Allison Transmission Holdings and its competitors. Allison Transmission Holdings's current Beta is 0.6798. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Allison Transmission Holdings (FRA:1A7) has a current Beta of 0.6798. The stock's GF Value™ is €104.16, compared to a current price of €105.30 — trading 1.1% above its estimated fair value. The current Beta is 0.6798. Allison Transmission Holdings' overall GF Score™ is 95/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Allison Transmission Holdings (FRA:1A7), the current Beta is 0.6798 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allison Transmission Holdings (FRA:1A7) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be overvalued.
The current stock price of €105.30 is trading 1.1% above its estimated GF Value™ of €104.16.
Key valuation signals for FRA:1A7:
Beta: 0.6798
GF Value™: €104.16 vs. price of €105.30 (1.1% above fair value)
No single metric tells the full story. See the FRA:1A7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
95GF Score
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