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

Industrials · SE · Market cap 685B SEK

AV AB Volvo (publ), VOLV-B · ST
Pricekr 340.20
Fair Valuekr 288.08
Upside-15.3%
Quality58/100
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Mixed Growth
Thin margins · 7.0% net margin
Moderate debt · generates free cash flow
2.54% 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 13, 2026

From 24 valuation models · updated yesterday

Share price +0.5% over the past month.

A solid business, but screening 15% overvalued on our models.

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 13, 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 340.20 price screens above the kr 288.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

AB Volvo (publ), (VOLV-B) currently trades at kr 340.20, while our model-based Fair Value estimate is kr 288.08, implying the stock looks roughly 15.3% 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 13, 2026

Our scenario range runs from kr 162.27 (bear case) to kr 418.18 (bull case); at kr 340.20, 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 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at -15%, VOLV-B screens richer than that median.

Fair Value models

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
Growth DCF kr 132.55 kr 217.94 kr 346.64 80
Residual Income kr 115.15 kr 152.05 kr 606.30 76
Rev-Margin DCF kr 160.35 kr 286.07 kr 430.11 74
All 24 models by family
DCF Models
FCF DCF kr 129.18 kr 224.91 kr 378.35 38
Owner Earnings kr 201.94 kr 341.04 kr 564.00 31
5Y Revenue Exit kr 160.35 kr 287.19 kr 450.09 39
5Y EBITDA Exit kr 227.19 kr 412.33 kr 629.53 41
5Y P/E Exit kr 180.71 kr 325.30 kr 477.36 38
10Y Revenue Exit kr 141.18 kr 256.40 kr 412.80 36
10Y EBITDA Exit kr 191.71 kr 345.32 kr 553.04 37
10Y P/E Exit kr 161.39 kr 283.48 kr 434.11 35
Earnings-Based
Graham-Dodd kr 115.25 kr 359.27 kr 477.90 54
Lynch FV kr 78.18 kr 111.69 kr 145.20 50
PEG = 1.0 kr 78.18 kr 111.69 kr 145.20 46
EPV kr 144.78 kr 175.87 kr 203.51 59
Multiples
P/E Multiple kr 266.94 kr 355.92 kr 444.89 63
P/S Multiple kr 216.09 kr 288.12 kr 360.15 58
P/B Multiple kr 216.09 kr 288.12 kr 360.15 55
EV/EBIT kr 272.79 kr 374.19 kr 475.59 53
EV/EBITDA kr 313.85 kr 428.93 kr 544.02 54
EV/Revenue kr 185.70 kr 278.75 kr 371.80 43
Asset-Based
NCAV (Graham) kr 43.87 kr 58.79 kr 87.75 50
Growth DCF
Growth DCF kr 132.55 kr 217.94 kr 346.64 80
Rev-Margin DCF kr 160.35 kr 286.07 kr 430.11 74
Economic Profit
Residual Income kr 115.15 kr 152.05 kr 606.30 76
ROIC Compounder kr 156.64 kr 212.04 kr 280.91 72
Growth Earnings
Growth-Adj P/E kr 220.84 kr 315.48 kr 410.13 68

Widest divergence: Growth Earnings (kr 315.48) versus Asset-Based (kr 58.79). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 468B SEK
Revenue growth (YoY) -9.1%
Net margin 7.0%
Return on equity 17.0%
Free cash flow 27.3B SEK FY2025
P/E ratio 19.9 as of Jun 8, 2026
More key figures
Operating margin 9.9%
EPS (TTM) kr 16.17
Dividend yield 2.6%
EPS growth (YoY) -15.8%
Net debt 181B SEK FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 54 · Market factors (momentum, volatility) 64

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 53
Price trend over the last 3–12 months (market factor)
52W Momentum 77
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.

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. 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. 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. 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%
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 pp

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

EBIT margin +8.6 pp
Tax rate +1.0 pp
Residual (interest, one-offs) +2.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

VOLV-B screens 15% 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

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Farm & Heavy Construction Machinery · 149 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 −15% · 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) 2.5% · Above median
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.

VALUE 13 · sector 21
FUTURE 0 · sector 30
PAST 68 · sector 34
HEALTH 62 · sector 93
DIVIDEND 51 · 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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Farm & Heavy Construction Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Caterpillar Inc CAT $855.60 $307.83 -64%
Deere & Company DE $619.77 $182.29 -71%
PACCAR Inc PCAR $131.06 $94.80 -28%
Epiroc AB EPIA kr 254.50 kr 144.14 -43%
Sany Heavy Industry Co 600031 ¥18.91 ¥20.84 +10%
XCMG Construction Machinery Co 000425 ¥8.25 ¥11.79 +43%
Sinotruk (Hong Kong) Limited 3808 HK$41.42 HK$53.57 +29%
Yutong Bus Co 600066 ¥29.82 ¥42.00 +41%
Ashok Leyland Limited ASHOKLEY ₹176.70 ₹118.01 -33%
Zoomlion Heavy Industry Science and Technology Co 1157 HK$6.96 HK$11.25 +62%

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Frequently asked questions

Is AB Volvo (publ), (VOLV-B) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of kr 288.08 versus a price of kr 340.20, about −15% (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 13, 2026), built from audited fundamentals. The current price is kr 340.20.
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 13, 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 2.61% relative to its recent price (as of Aug 13, 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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