Volvo (OM:VOLV B) Valuation in Focus Following Quarterly Earnings Decline

AB Volvo (OM:VOLV B) released earnings for the third quarter and the nine months ending September 30, 2025, with both sales and net income showing a year-on-year decline. This report is at the forefront of recent investor discussions.

See our latest analysis for AB Volvo.

Volvo’s latest earnings miss appears to have shaken investor confidence. The share price dropped 7.8% in a single day and slid 10% over the past month. Despite this short-term pullback, the stock’s five-year total shareholder return stands at an impressive 98%, reflecting strong longer-term performance even as near-term momentum has faded.

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With shares now trading at a notable discount to analyst targets and intrinsic estimates, the question for investors is whether Volvo is genuinely undervalued or if the market has already accounted for weaker growth ahead.

Most Popular Narrative: 8.4% Undervalued

According to Investingwilly, the narrative puts fair value at 270 SEK, meaning Volvo trades below where this approach values the company. With the stock at a 250 SEK last close, recent weakness has not erased its long-term investment thesis.

Volvo’s focus on improving its product offerings, including the push for electric vehicles and autonomous driving technology, ensures it remains competitive in an industry that is rapidly evolving. The company’s strategic investments into these areas are likely to result in both long-term growth and solid financial returns in the near future.

Read the complete narrative.

Curious how long-term trends and next-gen strategies could shape Volvo’s path? Find out which surprising assumptions are powering this fair value, and see why the case for 270 SEK has ignited debate among followers.

Result: Fair Value of $270 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain disruptions or a slower than expected EV rollout could challenge Volvo’s recovery and put ongoing pressure on its fair value case.

Find out about the key risks to this AB Volvo narrative.

Build Your Own AB Volvo Narrative

If you’d rather construct your own view or challenge these conclusions, you can shape your own narrative in just a few minutes, so why not Do it your way

A great starting point for your AB Volvo research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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