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.
Hitachi Construction Machinery Co (FRA:HCM) 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.
Hitachi Construction Machinery Co Volatility Related Terms
FRA:HCM vs CAT, DE, PCAR: Volatility Comparison
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery Co'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.
Hitachi Construction Machinery Co Volatility vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Volatility distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co's Volatility falls into.
Hitachi Construction Machinery Co (FRA:HCM) Volatility Calculation
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.
Hitachi Construction Machinery Co (FRA:HCM) has a Volatility of 48.31% 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 Hitachi Construction Machinery Co and its competitors.
Is Hitachi Construction Machinery Co's Volatility too high?
Hitachi Construction Machinery Co's current Volatility is 48.31%. Overall, Hitachi Construction Machinery Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Hitachi Construction Machinery Co's Volatility compare to CAT and DE?
Hitachi Construction Machinery Co's Volatility of 48.31% can be compared against companies in the Farm & Heavy Construction Machinery 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 a Farm & Heavy Construction Machinery company?
A good Volatility depends on the Farm & Heavy Construction Machinery 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 Hitachi Construction Machinery Co and its competitors. Hitachi Construction Machinery Co's current Volatility is 48.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitachi Construction Machinery Co stock overvalued right now?
Hitachi Construction Machinery Co (FRA:HCM) has a current Volatility of 48.31%. The stock's GF Value™ is €23.89, compared to a current price of €28.38 — trading 18.8% above its estimated fair value. The current Volatility is 48.31%. Hitachi Construction Machinery Co's overall GF Score™ is 86/100 with 2 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 Hitachi Construction Machinery Co (FRA:HCM), the current Volatility is 48.31% 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 Hitachi Construction Machinery Co (FRA:HCM) Overvalued in 2026?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co stock appears to be overvalued.
The current stock price of €28.38 is trading 18.8% above its estimated GF Value™ of €23.89.
Key valuation signals for FRA:HCM:
Volatility: 48.31%
GF Value™: €23.89 vs. price of €28.38 (18.8% above fair value)
No single metric tells the full story. See the FRA:HCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitachi Construction Machinery Co Business Description
Hitachi Construction Machinery manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining and construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.42% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo.
86GF Score
Get the complete analysis for FRA:HCM
Volatility is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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