Volvo Car AB (publ.)

LSE:0AAK Stock Report

Market Cap: SEK 76.2b

Volvo Car AB (publ.) Valuation

Is 0AAK 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 0AAK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
SEK 73.05
Fair Value
64.9% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: 0AAK (SEK25.61) is trading below our estimate of fair value (SEK73.05)

Significantly Below Fair Value: 0AAK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0AAK?

Key metric: As 0AAK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0AAK. This is calculated by dividing 0AAK's market cap by their current earnings.
What is 0AAK's PE Ratio?
PE Ratio4.8x
EarningsSEK 16.01b
Market CapSEK 76.20b

Price to Earnings Ratio vs Peers

How does 0AAK's PE Ratio compare to its peers?

The above table shows the PE ratio for 0AAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.3x
7211 Mitsubishi Motors
5.8x0.4%JP¥747.9b
TIFS TI Fluid Systems
12.6x21.4%UK£953.8m
7261 Mazda Motor
4.9x8.4%JP¥690.9b
7202 Isuzu Motors
9.9x6.3%JP¥1.6t
0AAK Volvo Car AB (publ.)
4.8x12.8%SEK 76.2b

Price-To-Earnings vs Peers: 0AAK is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does 0AAK's PE Ratio compare vs other companies in the Global Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0AAK 4.8xIndustry Avg. 16.3xNo. of Companies16PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0AAK is good value based on its Price-To-Earnings Ratio (4.8x) compared to the Global Auto industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0AAK'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.

0AAK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio24.6x

Price-To-Earnings vs Fair Ratio: 0AAK is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.6x).

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 0AAK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 25.61
SEK 25.57
-0.2%
18.5%SEK 36.00SEK 20.00n/a11
Jan ’26SEK 24.11
SEK 25.50
+5.8%
19.5%SEK 36.00SEK 20.00n/a10
Dec ’25SEK 23.73
SEK 25.50
+7.4%
19.5%SEK 36.00SEK 20.00n/a10
Nov ’25SEK 22.82
SEK 27.30
+19.6%
24.5%SEK 37.00SEK 20.00n/a10
Oct ’25SEK 27.29
SEK 33.80
+23.9%
15.7%SEK 43.00SEK 26.00n/a10
Sep ’25SEK 29.31
SEK 35.60
+21.5%
12.4%SEK 43.00SEK 28.00n/a10
Aug ’25SEK 29.11
SEK 36.10
+24.0%
14.2%SEK 45.00SEK 28.00n/a10
Jul ’25SEK 33.53
SEK 38.30
+14.2%
13.1%SEK 48.00SEK 32.00n/a10
Jun ’25SEK 34.70
SEK 39.18
+12.9%
13.1%SEK 48.00SEK 32.00n/a11
May ’25SEK 34.93
SEK 39.18
+12.2%
13.1%SEK 48.00SEK 32.00n/a11
Apr ’25SEK 40.82
SEK 37.82
-7.4%
14.0%SEK 48.00SEK 29.00n/a11
Mar ’25SEK 38.49
SEK 38.00
-1.3%
14.5%SEK 45.00SEK 29.00n/a10
Feb ’25SEK 33.85
SEK 37.22
+10.0%
17.9%SEK 50.00SEK 29.00n/a9
Jan ’25SEK 32.62
SEK 41.44
+27.0%
21.0%SEK 57.00SEK 32.00SEK 24.119
Dec ’24SEK 33.94
SEK 43.11
+27.0%
20.4%SEK 57.00SEK 33.00SEK 23.739
Nov ’24SEK 37.39
SEK 44.89
+20.1%
19.2%SEK 57.00SEK 33.00SEK 22.829
Oct ’24SEK 44.53
SEK 46.44
+4.3%
16.6%SEK 57.00SEK 34.00SEK 27.299
Sep ’24SEK 40.50
SEK 47.89
+18.2%
17.6%SEK 63.00SEK 34.00SEK 29.319
Aug ’24SEK 51.23
SEK 47.44
-7.4%
18.2%SEK 63.00SEK 34.00SEK 29.119
Jul ’24SEK 42.84
SEK 41.67
-2.7%
15.3%SEK 50.00SEK 31.00SEK 33.539
Jun ’24SEK 37.67
SEK 41.67
+10.6%
15.3%SEK 50.00SEK 31.00SEK 34.709
May ’24SEK 41.94
SEK 43.22
+3.0%
15.6%SEK 52.00SEK 31.00SEK 34.939
Apr ’24SEK 45.20
SEK 48.44
+7.2%
15.3%SEK 60.00SEK 36.00SEK 40.829
Mar ’24SEK 48.47
SEK 49.11
+1.3%
14.8%SEK 60.00SEK 38.00SEK 38.499
Feb ’24SEK 53.69
SEK 49.72
-7.4%
14.9%SEK 60.00SEK 38.00SEK 33.859
Jan ’24SEK 47.38
SEK 49.67
+4.8%
17.3%SEK 60.00SEK 35.00SEK 32.629
Analyst Price Target
Consensus Narrative from 11 Analysts
SEK 25.56
Fair Value
0.2% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 12:45
End of Day Share Price 2025/01/08 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Volvo Car AB (publ.) is covered by 15 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stuart PearsonBNP Paribas Exane
Hanna Dorothee CresswellBNP Paribas Exane
Lena OsterbergCarnegie Investment Bank AB