Volvo Car AB (publ.)

DB:8JO1 Stock Report

Market Cap: €6.2b

Volvo Car AB (publ.) Valuation

Is 8JO1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 8JO1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8JO1 (€2.13) is trading below our estimate of fair value (€10.04)

Significantly Below Fair Value: 8JO1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8JO1?

Key metric: As 8JO1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8JO1. This is calculated by dividing 8JO1's market cap by their current earnings.
What is 8JO1's PE Ratio?
PE Ratio4.5x
EarningsSEK 16.01b
Market CapSEK 71.77b

Price to Earnings Ratio vs Peers

How does 8JO1's PE Ratio compare to its peers?

The above table shows the PE ratio for 8JO1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.3x
PAH3 Porsche Automobil Holding
2.8x18.5%€10.6b
BMW Bayerische Motoren Werke
5.3x5.6%€43.2b
VOW3 Volkswagen
3.4x9.6%€42.1b
P911 Dr. Ing. h.c. F. Porsche
13.6x11.3%€54.0b
8JO1 Volvo Car AB (publ.)
4.5x13.4%€71.8b

Price-To-Earnings vs Peers: 8JO1 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (6.3x).

Price to Earnings Ratio vs Industry

How does 8JO1's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
8JO1 4.5xIndustry Avg. 15.6xNo. of Companies14PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8JO1 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the Global Auto industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is 8JO1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8JO1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ratio8.9x

Price-To-Earnings vs Fair Ratio: 8JO1 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 8JO1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.13
€2.22
+4.3%
19.5%€3.13€1.74n/a10
Nov ’25€1.90
€2.37
+24.9%
24.5%€3.21€1.74n/a10
Oct ’25€2.42
€2.96
+22.0%
15.7%€3.76€2.27n/a10
Sep ’25€2.57
€3.12
+21.7%
12.4%€3.77€2.46n/a10
Aug ’25€2.52
€3.07
+21.8%
14.2%€3.83€2.38n/a10
Jul ’25€2.92
€3.42
+16.8%
13.1%€4.28€2.85n/a10
Jun ’25€3.05
€3.35
+10.1%
13.1%€4.11€2.74n/a11
May ’25€3.01
€3.35
+11.5%
13.1%€4.11€2.74n/a11
Apr ’25n/a
€3.30
0%
14.0%€4.19€2.53n/a11
Mar ’25n/a
€3.37
0%
14.5%€3.99€2.57n/a10
Feb ’25n/a
€3.29
0%
17.9%€4.42€2.56n/a9
Jan ’25n/a
€3.69
0%
21.0%€5.08€2.85n/a9
Dec ’24n/a
€3.74
0%
20.4%€4.95€2.87n/a9
Nov ’24n/a
€3.81
0%
19.2%€4.83€2.80€1.909
Oct ’24n/a
€3.90
0%
16.6%€4.78€2.85€2.429
Sep ’24n/a
€4.07
0%
17.6%€5.36€2.89€2.579
Aug ’24n/a
€4.14
0%
18.2%€5.49€2.96€2.529
Jul ’24n/a
€3.66
0%
15.3%€4.39€2.72€2.929
Jun ’24n/a
€3.66
0%
15.3%€4.39€2.72€3.059
May ’24n/a
€3.82
0%
15.6%€4.60€2.74€3.019
Apr ’24n/a
€4.30
0%
15.3%€5.32€3.19n/a9
Mar ’24n/a
€4.44
0%
14.8%€5.43€3.44n/a9
Feb ’24n/a
€4.38
0%
14.9%€5.29€3.35n/a9
Jan ’24n/a
€4.48
0%
17.3%€5.42€3.16n/a9
Dec ’23n/a
€4.55
0%
17.7%€5.53€3.23n/a9
Nov ’23n/a
€4.78
0%
21.7%€6.69€3.21n/a9

Analyst Forecast: Target price is less than 20% higher than the current share price.

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