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.
China Merchants Bank Co (FRA:M4B) 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.
China Merchants Bank Co Volatility Related Terms
China Merchants Bank Co Volatility Competitor Comparison
For the Banks - Regional subindustry, China Merchants Bank 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.
China Merchants Bank Co Volatility vs Banks Industry
For the Banks industry and Financial Services sector, China Merchants Bank Co's Volatility distribution charts can be found below:
* The bar in red indicates where China Merchants Bank Co's Volatility falls into.
China Merchants Bank Co (FRA:M4B) 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.
China Merchants Bank Co (FRA:M4B) has a Volatility of 19.12% 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 China Merchants Bank Co and its competitors.
Is China Merchants Bank Co's Volatility too high?
China Merchants Bank Co's current Volatility is 19.12%. Overall, China Merchants Bank Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Volatility compare to competitors?
China Merchants Bank Co's Volatility of 19.12% can be compared against companies in the Banks 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 Banks company?
A good Volatility depends on the Banks 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 China Merchants Bank Co and its competitors. China Merchants Bank Co's current Volatility is 19.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (FRA:M4B) is currently considered Fairly Valued. The stock's GF Value™ is €5.44, compared to a current price of €5.09 — trading 6.5% below its estimated fair value. The current Volatility is 19.12%. China Merchants Bank Co's overall GF Score™ is 63/100 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 China Merchants Bank Co (FRA:M4B), the current Volatility is 19.12% 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 China Merchants Bank Co (FRA:M4B) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued.
The current stock price of €5.09 is trading 6.5% below its estimated GF Value™ of €5.44.
GuruFocus considers China Merchants Bank Co to be Fairly Valued.
Key valuation signals for FRA:M4B:
Volatility: 19.12%
GF Value™: €5.44 vs. price of €5.09 (6.5% below fair value)
No single metric tells the full story. See the FRA:M4B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
63GF Score
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