AB Volvo (publ) (VOLV-A) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of AB Volvo (publ) SEK 284, price SEK 315, upside -9.8%, quality 58 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania.
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AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company operates through Industrial Operations - Trucks, Industrial Operations - Construction Equipment, Industrial Operations - Buses, Industrial Operations - Volvo Penta, Industrial Operations - Group Functions & Other, and Financial Services segments. The company offers heavy-duty trucks for long-haulage and construction work, and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It also provides haulers, wheel loaders, excavators, road construction machines, and compact equipment under the Volvo, SDLG, and Rokbak brands. In addition, the company offers engines and power solutions for industrial off-highway applications and power generation, as well as for leisure boats, yachts, and commercial vessels under the Volvo Penta brand. Further, it provides customer support agreements, machine control systems, attachments, financing, and leasing; and insurance, rentals, spare parts, repairs, preventive maintenance, uptime and service agreements, and assistance services. It serves customers primarily in the transportation, infrastructure, construction, marine, industrial, and public transportation industries. The company offers its products and services through a network of dealers. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
Stock analysis
AB Volvo (publ) (VOLV-A) currently trades at kr 315.20, while our model-based Fair Value estimate is kr 284.18, so the stock looks roughly fairly valued today (gap 10.9%).
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Valuation
Bull case: the Growth Earnings group reads highest at a median of kr 315.48 per share, and 9 of the 24 models we run sit above the kr 315.20 price.
Bear case: the Asset-Based group reads lowest at kr 58.79, and 15 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: kr 159.92 (bear) to kr 410.13 (bull), the price of kr 315.20 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
AB Volvo (publ) reported revenue of 479B SEK in FY2025 versus 372B SEK in FY2021, a compound +6.5%/yr. Reported net income was 34.5B SEK in FY2025, compounding +1.2%/yr from FY2021.
Key figures
Market cap 641B SEK (≈ $63.8B) · P/E ratio 20.9 · P/S ratio 1.50 · EPS (TTM) kr 16.16 · Dividend yield 4.1% · Net margin 7.2% · Return on equity 20.9% · Return on assets (EBIT) 8.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 62 out of 100 (medium confidence).
What moves the price
The share trades about 15% below its 52-week high and 32% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at −10%, VOLV-A screens richer than that median.
Fair Value models
Bear kr 159.92Fair Value kr 284.18Bull kr 410.13
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (kr 2.39 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−9.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.2%
Start year 2020 (pandemic). Over 10 years: +4.4% a year
Revenue growth 38 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+5.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.0%
Dividend (yield on the price)4.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1.0% vs 10.1%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 10%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (Sweden: IMF forecast 2.0% a year to 2030, 2.9% from 2016 to 2025) that is about +12.6% a year for the price and +3.9% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Farm & Heavy Construction Machinery · 147 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−9.8% · Below median
Profitability
Return on equity (TTM)20.9% · Top 25%
Return on assets4.5% · Above median
Net margin (TTM)7.6% · Above median
Operating margin (TTM)10.6% · Above median
Growth and dividend
Revenue growth2.7% · Below median
Dividend yield (TTM)4.1% · Top 25%
Balance sheet
Debt / equity0.77× · Highest 25%
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
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Is AB Volvo (publ) (VOLV-A) overvalued or undervalued?
As of Sep 30, 2026, our model estimates a fair value of kr 284.18 versus a price of kr 315.20, about −10% upside (fairly valued).
What is the fair value of VOLV-A?
Our model-based fair value for AB Volvo (publ) is kr 284.18 (as of Sep 30, 2026), built from audited fundamentals. The current price: kr 315.20.
What is the quality score of VOLV-A?
AB Volvo (publ) has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for AB Volvo (publ) (VOLV-A)?
Our model-based price target is the fair value of kr 284.18 (as of Sep 30, 2026) from 24 valuation models. Cautious scenario kr 159.92, optimistic scenario kr 410.13. It is a calculation from audited fundamentals, not an analyst target.
What is the AB Volvo (publ) stock forecast for 2026?
Our models put fair value at kr 284.18, about −10% upside versus a price of kr 315.20 (fairly valued). Cautious scenario kr 159.92, optimistic scenario kr 410.13. The calculation is refreshed regularly with new filings.
What is the revenue of AB Volvo (publ) (VOLV-A)?
AB Volvo (publ) reported trailing-twelve-month revenue of about 472B SEK (latest available figure, as of Sep 30, 2026).
Does AB Volvo (publ) pay a dividend?
AB Volvo (publ) currently shows a dividend yield of about 4.12% relative to its recent price (as of Sep 30, 2026).
What growth is priced into AB Volvo (publ) (VOLV-A)?
For today's price to be fair in a discounted-cash-flow model, AB Volvo (publ) would have to grow free cash flow by +14.8 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.2 % per year. As of Sep 30, 2026.
What discount rate (WACC) does the fair value of VOLV-A use?
Our models discount AB Volvo (publ) at 8.9 %: a base by market capitalisation (large), damped by beta 0.97, country premium for Sweden. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For AB Volvo (publ) that is +14.8 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has AB Volvo (publ) (VOLV-A) delivered so far?
Over the past 5 years revenue at AB Volvo (publ) grew +7.2 % a year. The price currently implies +14.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of AB Volvo (publ) (VOLV-A) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into AB Volvo (publ) (+14.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of AB Volvo (publ) (VOLV-A)?
The free-cash-flow yield on the price is 4.25 %: that much free cash flow AB Volvo (publ) produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of AB Volvo (publ) (VOLV-A)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For AB Volvo (publ) it is kr 284.18 per share (as of Sep 30, 2026), against a price of kr 315.20. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is AB Volvo (publ) stock overvalued or undervalued in 2026?
As of Sep 30, 2026, VOLV-A trades above its calculated fair value: price kr 315.20, fair value kr 284.18, a gap of about −10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of VOLV-A?
No. The price is what the market pays today (kr 315.20); the fair value is what the company's own numbers justify (kr 284.18). For AB Volvo (publ) the two are kr 31.02 per share apart. That gap is exactly why we show both numbers side by side.
How much is AB Volvo (publ) worth?
The market values AB Volvo (publ) at about 641B SEK (market capitalisation, as of Sep 30, 2026). Per share that is kr 315.20; our models calculate a fair value of kr 284.18 per share.
What do the bullish and bearish scenarios say about VOLV-A?
Our models span a range for AB Volvo (publ): cautious scenario kr 159.92, base kr 284.18, optimistic kr 410.13 per share (as of Sep 30, 2026, price kr 315.20). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of VOLV-A?
AB Volvo (publ) trades at a price-to-earnings ratio of 20.9 (as of Sep 30, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of kr 284.18 is built from several models across several years. Other multiples: PEG 1.4, P/B 3.6, P/S 1.4, EV/EBITDA 12.6.
What is the PEG ratio of VOLV-A?
The PEG ratio of AB Volvo (publ) is 1.39 (P/E divided by earnings growth, as of Sep 30, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of AB Volvo (publ) (VOLV-A)?
Balance-sheet figures for AB Volvo (publ) (as of Sep 30, 2026): return on equity 20.9%, debt of 0.77 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is VOLV-A from its 52-week high?
AB Volvo (publ) trades at kr 315.20, about 15% below its 52-week high of kr 371.20 and 32% above the low of kr 238.68 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of kr 284.18 is for.
Which stocks are comparable to AB Volvo (publ)?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, PACCAR Inc, Daimler Truck Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is AB Volvo (publ) stock attractive at the current price?
The data as of Sep 30, 2026: price kr 315.20, calculated fair value kr 284.18 (−10%), Quality Score 58/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of VOLV-A calculated?
We run AB Volvo (publ) through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of kr 284.18, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. AB Volvo (publ) itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of AB Volvo (publ) (VOLV-A)?
The closing price on Oct 2, 2026 was kr 315.20. Our model-based fair value is kr 284.18, about −10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with AB Volvo (publ) right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (kr 159.92 to kr 410.13) leaves room in how you read the outcome.
Where does the earnings growth of AB Volvo (publ) (VOLV-A) come from?
Earnings per share at AB Volvo (publ) grew +18.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.3 %, EBIT margin +8.6 %, tax rate +1.0 %, residual (interest, one-offs) +1.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of AB Volvo (publ)
How large is the market capitalisation of AB Volvo (publ) (VOLV-A)?
The market capitalisation of AB Volvo (publ) is 641B SEK (≈ $63.8B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of AB Volvo (publ) (VOLV-A)?
The price-to-sales ratio of AB Volvo (publ) is 1.50 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of AB Volvo (publ) (VOLV-A)?
Earnings per share at AB Volvo (publ) are kr 16.16 (price ÷ EPS = P/E 20.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of AB Volvo (publ) (VOLV-A)?
The dividend yield of AB Volvo (publ) is 4.1% (payout 80.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of AB Volvo (publ) (VOLV-A)?
The net margin of AB Volvo (publ) is 7.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of AB Volvo (publ) (VOLV-A)?
The return on equity (ROE) of AB Volvo (publ) is 20.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of AB Volvo (publ) (VOLV-A)?
On an EBIT basis the return on assets of AB Volvo (publ) is 8.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of AB Volvo (publ) (VOLV-A)?
The operating margin of AB Volvo (publ) is 10.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at AB Volvo (publ) (VOLV-A)?
Revenue at AB Volvo (publ) is growing +2.7% versus a year earlier (3y avg +0.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at AB Volvo (publ) (VOLV-A)?
Earnings per share at AB Volvo (publ) are growing +40.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does AB Volvo (publ) (VOLV-A) carry?
The net debt of AB Volvo (publ) is 181B SEK (fiscal year 2025, ≈ 6.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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