AB Volvo (publ)

OM:VOLV B Stock Report

Market Cap: SEK 549.4b

AB Volvo Valuation

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

Below Fair Value: VOLV B (SEK267.7) is trading below our estimate of fair value (SEK415.05)

Significantly Below Fair Value: VOLV 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 VOLV B?

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

The above table shows the Price to Earnings ratio for VOLV B. This is calculated by dividing VOLV B's market cap by their current earnings.
What is VOLV B's PE Ratio?
PE Ratio10.5x
EarningsSEK 51.70b
Market CapSEK 549.41b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VOLV B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.7x
EPI A Epiroc
27.4x11.5%SEK 228.7b
ENGCON B engcon
89.6x42.1%SEK 15.2b
ATCO A Atlas Copco
28.8x7.3%SEK 804.8b
VBG B VBG Group
12.9x2.3%SEK 7.7b
VOLV B AB Volvo
10.5x0.8%SEK 549.4b

Price-To-Earnings vs Peers: VOLV B is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (39.7x).

Price to Earnings Ratio vs Industry

How does VOLV B's PE Ratio compare vs other companies in the SE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
VOLV B 10.5xIndustry Avg. 26.0xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VOLV B is good value based on its Price-To-Earnings Ratio (10.5x) compared to the Swedish Machinery industry average (26x).

Price to Earnings Ratio vs Fair Ratio

What is VOLV 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.

VOLV B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: VOLV B is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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 VOLV B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 267.70
SEK 307.63
+14.9%
8.1%SEK 345.00SEK 271.00n/a19
Dec ’25SEK 271.60
SEK 310.47
+14.3%
9.5%SEK 380.00SEK 271.00n/a19
Nov ’25SEK 274.90
SEK 310.21
+12.8%
10.1%SEK 380.00SEK 271.00n/a19
Oct ’25SEK 265.90
SEK 307.95
+15.8%
11.2%SEK 380.00SEK 249.00n/a20
Sep ’25SEK 272.60
SEK 313.80
+15.1%
10.9%SEK 380.00SEK 255.00n/a20
Aug ’25SEK 266.30
SEK 316.85
+19.0%
11.5%SEK 382.00SEK 263.00n/a20
Jul ’25SEK 273.40
SEK 313.53
+14.7%
11.3%SEK 383.00SEK 251.00n/a19
Jun ’25SEK 282.00
SEK 313.53
+11.2%
11.1%SEK 383.00SEK 251.00n/a19
May ’25SEK 283.40
SEK 312.58
+10.3%
10.6%SEK 360.00SEK 251.00n/a19
Apr ’25SEK 290.10
SEK 298.53
+2.9%
12.6%SEK 359.00SEK 240.00n/a17
Mar ’25SEK 289.95
SEK 275.22
-5.1%
15.0%SEK 359.00SEK 201.00n/a18
Feb ’25SEK 253.25
SEK 270.11
+6.7%
13.8%SEK 341.00SEK 201.00n/a18
Jan ’25SEK 261.70
SEK 260.83
-0.3%
13.7%SEK 315.00SEK 201.00n/a18
Dec ’24SEK 245.05
SEK 259.28
+5.8%
14.2%SEK 315.00SEK 201.00SEK 271.6018
Nov ’24SEK 217.35
SEK 251.68
+15.8%
14.3%SEK 315.00SEK 201.00SEK 274.9019
Oct ’24SEK 225.60
SEK 246.74
+9.4%
13.1%SEK 295.00SEK 201.00SEK 265.9019
Sep ’24SEK 220.00
SEK 243.28
+10.6%
12.9%SEK 295.00SEK 201.00SEK 272.6018
Aug ’24SEK 230.55
SEK 239.11
+3.7%
13.0%SEK 290.00SEK 193.00SEK 266.3018
Jul ’24SEK 223.00
SEK 235.06
+5.4%
13.3%SEK 290.00SEK 193.00SEK 273.4018
Jun ’24SEK 202.85
SEK 233.33
+15.0%
14.2%SEK 290.00SEK 177.00SEK 282.0018
May ’24SEK 210.80
SEK 230.50
+9.3%
14.8%SEK 290.00SEK 177.00SEK 283.4018
Apr ’24SEK 213.85
SEK 216.84
+1.4%
11.6%SEK 270.00SEK 166.00SEK 290.1019
Mar ’24SEK 210.65
SEK 217.05
+3.0%
11.9%SEK 270.00SEK 166.00SEK 289.9519
Feb ’24SEK 208.00
SEK 216.84
+4.3%
11.8%SEK 272.00SEK 166.00SEK 253.2519
Jan ’24SEK 188.48
SEK 214.63
+13.9%
11.9%SEK 268.00SEK 162.00SEK 261.7019
Dec ’23SEK 193.04
SEK 212.16
+9.9%
12.6%SEK 268.00SEK 162.00SEK 245.0519

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 18:54
End of Day Share Price 2024/12/20 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

AB Volvo (publ) is covered by 51 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Olof CederholmABG Sundal Collier
Hans-Peter WodniokAlphaValue
David LeikerBaird