Volvo Car AB (publ.)

OM:VOLCAR B Stock Report

Market Cap: SEK 69.8b

Volvo Car AB (publ.) Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 VOLCAR B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VOLCAR B (SEK23.48) is trading below our estimate of fair value (SEK112.65)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VOLCAR B. This is calculated by dividing VOLCAR B's market cap by their current earnings.
What is VOLCAR B's PE Ratio?
PE Ratio4.4x
EarningsSEK 16.01b
Market CapSEK 69.81b

Price to Earnings Ratio vs Peers

How does VOLCAR B's PE Ratio compare to its peers?

The above table shows the PE ratio for VOLCAR B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.6x
KABE B KABE Group AB (publ.)
14xn/aSEK 2.7b
7211 Mitsubishi Motors
5.2x2.0%JP¥653.3b
7202 Isuzu Motors
9.3x6.1%JP¥1.5t
7201 Nissan Motor
9.9x25.4%JP¥1.5t
VOLCAR B Volvo Car AB (publ.)
4.4x13.4%SEK 69.8b

Price-To-Earnings vs Peers: VOLCAR B is good value based on its Price-To-Earnings Ratio (4.4x) compared to the peer average (9.6x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VOLCAR B 4.4xIndustry Avg. 15.7xNo. of Companies15PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VOLCAR B is good value based on its Price-To-Earnings Ratio (4.4x) compared to the Global Auto industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is VOLCAR B'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.

VOLCAR B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VOLCAR B's Price-To-Earnings Fair Ratio for valuation analysis.

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 VOLCAR B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 23.48
SEK 25.50
+8.6%
19.5%SEK 36.00SEK 20.00n/a10
Nov ’25SEK 22.68
SEK 27.30
+20.4%
24.5%SEK 37.00SEK 20.00n/a10
Oct ’25SEK 26.97
SEK 33.80
+25.3%
15.7%SEK 43.00SEK 26.00n/a10
Sep ’25SEK 29.38
SEK 35.60
+21.2%
12.4%SEK 43.00SEK 28.00n/a10
Aug ’25SEK 28.53
SEK 36.10
+26.6%
14.2%SEK 45.00SEK 28.00n/a10
Jul ’25SEK 33.25
SEK 38.30
+15.2%
13.1%SEK 48.00SEK 32.00n/a10
Jun ’25SEK 35.13
SEK 39.18
+11.5%
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 40.58
SEK 37.82
-6.8%
14.0%SEK 48.00SEK 29.00n/a11
Mar ’25SEK 38.39
SEK 38.00
-1.0%
14.5%SEK 45.00SEK 29.00n/a10
Feb ’25SEK 34.54
SEK 37.22
+7.8%
17.9%SEK 50.00SEK 29.00n/a9
Jan ’25SEK 32.56
SEK 41.44
+27.3%
21.0%SEK 57.00SEK 32.00n/a9
Dec ’24SEK 34.13
SEK 43.11
+26.3%
20.4%SEK 57.00SEK 33.00n/a9
Nov ’24SEK 37.39
SEK 44.89
+20.1%
19.2%SEK 57.00SEK 33.00SEK 22.689
Oct ’24SEK 44.44
SEK 46.44
+4.5%
16.6%SEK 57.00SEK 34.00SEK 26.979
Sep ’24SEK 40.50
SEK 47.89
+18.2%
17.6%SEK 63.00SEK 34.00SEK 29.389
Aug ’24SEK 50.80
SEK 47.44
-6.6%
18.2%SEK 63.00SEK 34.00SEK 28.539
Jul ’24SEK 42.82
SEK 41.67
-2.7%
15.3%SEK 50.00SEK 31.00SEK 33.259
Jun ’24SEK 37.79
SEK 41.67
+10.3%
15.3%SEK 50.00SEK 31.00SEK 35.139
May ’24SEK 42.16
SEK 43.22
+2.5%
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 40.589
Mar ’24SEK 48.47
SEK 49.11
+1.3%
14.8%SEK 60.00SEK 38.00SEK 38.399
Feb ’24SEK 53.69
SEK 49.72
-7.4%
14.9%SEK 60.00SEK 38.00SEK 34.549
Jan ’24SEK 47.38
SEK 49.67
+4.8%
17.3%SEK 60.00SEK 35.00SEK 32.569
Dec ’23SEK 51.76
SEK 49.33
-4.7%
17.7%SEK 60.00SEK 35.00SEK 34.139
Nov ’23SEK 48.56
SEK 52.11
+7.3%
21.7%SEK 73.00SEK 35.00SEK 37.399

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

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