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AB Volvo (publ), (VOLV-B) Fair Value & Analysis

Industrials · SE · Market cap 685B SEK (≈ $71.5B) · ISIN SE0000115446

AV AB Volvo (publ), VOLV-B · ST
Pricekr 348.40
Fair Valuekr 288.08
Upside-17.3%
Quality58/100
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Strengths

Moderate debt · generates free cash flow

Risks

!Trades 21% ABOVE our fair value of kr 288.08
!Mixed Growth (revenue 5y +7.2 %/yr)
!Thin margins · 7.0% net margin
!Mixed vs. peers (7/15)
Mixed Growth (revenue 5y +7.2 %/yr)
Thin margins · 7.0% net margin
Moderate debt · generates free cash flow
3.73% dividend yield
Mixed vs. peers (7/15)
Moderate moat 61/100
Evidence: High Range kr 162.27 – kr 418.18 Share as image

Fair value as of: Aug 27, 2026

From 24 valuation models · updated 3 days ago

Share price −4.3% over the past month.

A solid business, but trading 21% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (kr 162.27 to kr 418.18) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

kr 371.50 kr 118.36 Fair Value kr 288.08 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range kr 118.36 – kr 371.50 · fair‑value band kr 162.27 – kr 418.18 · the kr 348.40 price screens above the kr 288.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

AB Volvo (publ), (VOLV-B) currently trades at kr 348.40, while our model-based Fair Value estimate is kr 288.08, implying the stock looks roughly 17.3% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, AB Volvo (publ), generated revenue of 468B SEK at a net margin of 7.0%. Revenue declined 9.1% year over year. It earns a return on equity of 17.0%. Net debt stands at 181B SEK. Fundamentals as of Aug 27, 2026

Our scenario range runs from kr 162.27 (bear case) to kr 418.18 (bull case); at kr 348.40, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 5% fair-value upside, at -17%, VOLV-B screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 2.11 SEK per share, which is 0.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
FCF DCF kr 129.18 kr 224.91 kr 378.35 77
Growth DCF kr 132.55 kr 217.94 kr 346.64 76
Owner Earnings kr 201.94 kr 341.04 kr 564.00 74
All 24 models by family
DCF Models
FCF DCF kr 129.18 kr 224.91 kr 378.35 77
Owner Earnings kr 201.94 kr 341.04 kr 564.00 74
5Y Revenue Exit kr 160.35 kr 287.19 kr 450.09 70
5Y EBITDA Exit kr 227.19 kr 412.33 kr 629.53 73
5Y P/E Exit kr 180.71 kr 325.30 kr 477.36 69
10Y Revenue Exit kr 141.18 kr 256.40 kr 412.80 64
10Y EBITDA Exit kr 191.71 kr 345.32 kr 553.04 66
10Y P/E Exit kr 161.39 kr 283.48 kr 434.11 62
Earnings-Based
Graham-Dodd kr 115.25 kr 359.27 kr 477.90 62
Lynch FV kr 78.18 kr 111.69 kr 145.20 58
PEG = 1.0 kr 78.18 kr 111.69 kr 145.20 55
EPV kr 144.78 kr 175.87 kr 203.51 72
Multiples
P/E Multiple kr 266.94 kr 355.92 kr 444.89 61
P/S Multiple kr 216.09 kr 288.12 kr 360.15 56
P/B Multiple kr 216.09 kr 288.12 kr 360.15 53
EV/EBIT kr 272.79 kr 374.19 kr 475.59 64
EV/EBITDA kr 313.85 kr 428.93 kr 544.02 66
EV/Revenue kr 185.70 kr 278.75 kr 371.80 52
Asset-Based
NCAV (Graham) kr 43.87 kr 58.79 kr 87.75 52
Growth DCF
Growth DCF kr 132.55 kr 217.94 kr 346.64 76
Rev-Margin DCF kr 160.35 kr 286.07 kr 430.11 70
Economic Profit
Residual Income kr 115.15 kr 152.05 kr 606.30 63
ROIC Compounder kr 156.64 kr 212.04 kr 280.91 70
Growth Earnings
Growth-Adj P/E kr 220.84 kr 315.48 kr 410.13 66

Widest divergence: Growth Earnings (kr 315.48) versus Asset-Based (kr 58.79). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 19.9 as of Jun 8, 2026
P/S ratio 1.43 P/E × margin
EPS (TTM) kr 16.17 price ÷ EPS = P/E 19.9
Dividend yield 3.7% payout 80.4%
Net margin 7.2% FY2025
Return on equity 17.0% TTM
More key figures
Profitability
Return on assets (EBIT) 8.5% avg 5y
Operating margin 9.9% TTM
Growth
Revenue (TTM) 468B SEK TTM
Revenue growth (YoY) -9.1% 3y avg +0.4%
EPS growth (YoY) -15.8%
Balance sheet & cash flow
Free cash flow 27.3B SEK FY2025
Net debt 181B SEK FY2025 · ≈ 6.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 54 · Market factors (momentum, volatility) 66

Profitability 47
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AB Volvo (publ), reported revenue of kr 479B in FY2025 versus kr 372B in FY2021, a compound +6.5%/yr. Reported net income was kr 34.5B in FY2025, compounding +1.2%/yr from FY2021.

Growth Quality 68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
479B SEK
Latest YoY
−9.0%
Avg. revenue growth/yr (3Y) 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.
+0.4%
Avg. revenue growth/yr (5Y) 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.
+7.2%
Avg. revenue growth/yr (38Y) 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.
+4.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.7% (1.0 + 3.7)
Revenue +6.5%/yr
FY21 kr 372B
FY22 kr 473B
FY23 kr 553B
FY24 kr 527B
FY25 kr 479B
Net income +1.2%/yr
FY21 kr 32.8B
FY22 kr 32.7B
FY23 kr 49.8B
FY24 kr 50.4B
FY25 kr 34.5B
Character of growth · EPS growth decomposed (2014-2025) +18.0 % p.a.
Revenue per share +6.3 %

of which total revenue +6.3 % · buybacks/dilution +0.0 %

EBIT margin +8.6 %
Tax rate +1.0 %
Residual (interest, one-offs) +1.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

VOLV-B screens 21% overvalued. Compare with Caterpillar Inc →

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Cite: Fair Value Calculator (2026). "AB Volvo (publ), Fair Value". https://www.fairvalue-calculator.com/stock/VOLV-B

Peer Group

Farm & Heavy Construction Machinery · 151 stocks

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.

Quality Score 58 · Above median
Fair Value upside −17% · Below median
Return on equity (TTM) 17% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth -9% · Bottom 25%
Dividend yield (TTM) 3.7% · Top 25%
Debt / equity 0.77× · Higher than 75% of peers

Valuation Multiples vs Farm & Heavy Construction Machinery median · lower = cheaper

P/E (TTM) 19.9× · Pricier than median
P/B 3.84× · Pricier than 75% of peers
P/S (TTM) 1.46× · Pricier than median
P/FCF 2.6× · Cheaper than median
EV/EBITDA 14.0× · Pricier than median
PEG 1.38× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE10 · sector 16
FUTURE0 · sector 30
PAST68 · sector 32
HEALTH62 · sector 93
DIVIDEND75 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Farm & Heavy Construction Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Caterpillar Inc CAT $800.25 $307.83 -62%
Deere & Company DE $622.66 $182.29 -71%
PACCAR Inc PCAR $129.23 $94.80 -27%
Daimler Truck Holding DTG €45.53 €47.70 +5%
Epiroc AB EPIA kr 272.80 kr 144.14 -47%
Exor N.V EXO €72.10 €123.44 +71%
Sany Heavy Industry Co 600031 ¥19.06 ¥20.84 +9%
Traton SE 8TRA €37.78 €52.60 +39%
Metso Oyj METSO €16.75 €10.73 -36%
XCMG Construction Machinery Co 000425 ¥8.11 ¥11.79 +45%

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Frequently asked questions

Is AB Volvo (publ), (VOLV-B) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of kr 288.08 versus a price of kr 348.40, about −17% (overvalued).
What is the fair value of VOLV-B?
Our model-based fair value for AB Volvo (publ), is kr 288.08 (as of Aug 27, 2026), built from audited fundamentals. The current price: kr 348.40.
What is the quality score of VOLV-B?
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 revenue of AB Volvo (publ), (VOLV-B)?
AB Volvo (publ), reported trailing-twelve-month revenue of about 468B SEK (latest available figure, as of Aug 27, 2026).
What is the net profit margin of VOLV-B?
The net profit margin of AB Volvo (publ), is about 7.0%, meaning it keeps roughly 7.0% of revenue as net income. Based on the latest reported figures.
Does AB Volvo (publ), pay a dividend?
AB Volvo (publ), currently shows a dividend yield of about 3.73% relative to its recent price (as of Aug 27, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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