Volatility is a statistical measure of the dispersion of returns for a given security or market index, it shows how the price swings around its mean. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year. In most cases, the higher the volatility, the riskier the security.
As of today (2026-06-25), Eaton's Volatility is 34.53%.
Eaton (FRA:3EC) Volatility Explanation
Volatility is a statistical measure of the dispersion of returns for a given security or market index. It’s often measured as standard deviation or variance of historical returns over a certain period. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year.
Volatility reflects the uncertainty or risk of a security’s value. Generally speaking, a higher volatility suggests a higher risk, because it implies a wider fluctuation around average price. This means the price of the security can change dramatically in either direction within a short period. Conversely, a lower volatility means that the security's price is more steady, which suggests a lower risk.
Another measurement of relative volatility is Beta. Beta is a measure of systematic risk of a security or a portfolio in comparison to the market as a whole. Beta is usually compared to 1. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Eaton Volatility Related Terms
FRA:3EC vs PH, CMI, EMR: Volatility Comparison
For the Specialty Industrial Machinery subindustry, Eaton's Volatility, along with its competitors' market caps and Volatility 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.
Eaton Volatility vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's Volatility distribution charts can be found below:
* The bar in red indicates where Eaton's Volatility falls into.
The annualized volatility is calculated as following:
σA
=
σM
*
√12
=
√ 1/(n-1) ∑(Ri - R')^2
*
√12
Where: σM is the monthly volatility, n is the number of months in the period, Ri is the security's historical monthly returns and R' is the arithmetic mean of monthly returns.
* 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.
Eaton (FRA:3EC) has a Volatility of 34.53% as of Jun. 25, 2026. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Eaton and its competitors.
Is Eaton's Volatility too high?
Eaton's current Volatility is 34.53%. Overall, Eaton has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eaton's Volatility compare to PH and CMI?
Eaton's Volatility of 34.53% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Volatility for an Industrial Products company?
A good Volatility depends on the Industrial Products industry context. However, Volatility 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 Volatility mean?
A high Volatility can signal that a stock is expensive relative to its fundamentals. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Eaton and its competitors. Eaton's current Volatility is 34.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Based on GuruFocus' analysis, Eaton (FRA:3EC) is currently considered Fairly Valued. The stock's GF Value™ is €343.36, compared to a current price of €359.10 — trading 4.6% above its estimated fair value. The current Volatility is 34.53%. Eaton's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Volatility calculated?
Volatility is calculated from a company's financial statements. For Eaton (FRA:3EC), the current Volatility is 34.53% as of Jun. 25, 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 Eaton (FRA:3EC) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton stock appears to be overvalued.
The current stock price of €359.10 is trading 4.6% above its estimated GF Value™ of €343.36.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for FRA:3EC:
Volatility: 34.53%
GF Value™: €343.36 vs. price of €359.10 (4.6% above fair value)
No single metric tells the full story. See the FRA:3EC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
89GF Score
Get the complete analysis for FRA:3EC
Volatility is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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