AB Volvo (publ)

DB:VOL1 Stock Report

Market Cap: €47.6b

AB Volvo Valuation

Is VOL1 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 VOL1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VOL1 (€23.5) is trading below our estimate of fair value (€36.92)

Significantly Below Fair Value: VOL1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VOL1?

Key metric: As VOL1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VOL1. This is calculated by dividing VOL1's market cap by their current earnings.
What is VOL1's PE Ratio?
PE Ratio10.6x
EarningsSEK 51.70b
Market CapSEK 548.64b

Price to Earnings Ratio vs Peers

How does VOL1's PE Ratio compare to its peers?

The above table shows the PE ratio for VOL1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.5x
DTG Daimler Truck Holding
8x11.6%€28.6b
8TRA Traton
5.3x8.4%€14.4b
KBX Knorr-Bremse
19.3x10.8%€11.8b
KGX KION GROUP
13.1x17.2%€4.4b
VOL1 AB Volvo
10.6x1.0%€548.6b

Price-To-Earnings vs Peers: VOL1 is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does VOL1's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
VOL1 10.6xIndustry Avg. 14.8xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VOL1 is good value based on its Price-To-Earnings Ratio (10.6x) compared to the German Machinery industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is VOL1'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.

VOL1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: VOL1 is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

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 VOL1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.50
€26.82
+14.1%
9.6%€33.04€23.57n/a19
Nov ’25€23.76
€27.05
+13.8%
10.1%€33.13€23.63n/a19
Oct ’25€23.43
€27.25
+16.3%
11.2%€33.62€22.03n/a20
Sep ’25€23.87
€27.65
+15.8%
10.9%€33.49€22.47n/a20
Aug ’25€23.47
€27.27
+16.2%
11.5%€32.87€22.63n/a20
Jul ’25€24.12
€27.79
+15.2%
11.3%€33.95€22.25n/a19
Jun ’25€24.60
€27.21
+10.6%
11.1%€33.23€21.78n/a19
May ’25€24.12
€26.84
+11.3%
10.6%€30.91€21.55n/a19
Apr ’25€25.00
€25.73
+2.9%
12.6%€30.94€20.68n/a17
Mar ’25€26.12
€24.57
-5.9%
15.0%€32.04€17.94n/a18
Feb ’25€22.21
€23.87
+7.5%
13.8%€30.14€17.76n/a18
Jan ’25€23.57
€23.39
-0.8%
13.7%€28.25€18.02n/a18
Dec ’24€21.59
€22.81
+5.7%
14.2%€27.71€17.68n/a18
Nov ’24€18.50
€21.70
+17.3%
14.3%€27.16€17.33€23.7619
Oct ’24€19.91
€20.69
+3.9%
13.1%€24.74€16.86€23.4319
Sep ’24€18.66
€20.39
+9.3%
12.9%€24.73€16.85€23.8718
Aug ’24€19.79
€20.75
+4.8%
13.0%€25.16€16.75€23.4718
Jul ’24€18.60
€20.16
+8.4%
13.3%€24.87€16.55€24.1218
Jun ’24€17.32
€20.87
+20.5%
14.2%€25.94€15.83€24.6018
May ’24€18.43
€20.36
+10.5%
14.8%€25.62€15.64€24.1218
Apr ’24€18.68
€19.18
+2.7%
11.6%€23.89€14.69€25.0019
Mar ’24€18.93
€19.63
+3.7%
11.9%€24.41€15.01€26.1219
Feb ’24€18.34
€19.22
+4.8%
11.8%€24.10€14.71€22.2119
Jan ’24€16.94
€19.30
+14.0%
11.9%€24.10€14.57€23.5719
Dec ’23€17.73
€19.40
+9.4%
12.6%€24.50€14.81€21.5919
Nov ’23€16.84
€19.48
+15.6%
14.3%€24.99€14.67€18.5020

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

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