Volvo Car AB (publ.) (VOLCAR-B.ST) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+225.8%

SEK 38.27

vs SEK 11.75 price

Levered DCF

SEK 44.35

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

0.9

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	523.89×	4.64×	7.43×	9.06×	16.32×	25.17×	20.37×	23.8×
P/B	0.62×	0.52×	0.77×	1.24×	2.2×	3.3×	3.63×	3.08×
P/S	0.26×	0.18×	0.24×	0.43×	0.7×	0.74×	0.71×	0.65×
EV / EBITDA	2.99×	1.1×	2.19×	2.96×	4.83×	6.88×	5.95×	5.33×
Gross margin	14.6%	19.8%	19.4%	19.9%	21.4%	17.5%	19.0%	19.5%
Operating margin	0.1%	5.6%	5.0%	6.8%	7.2%	3.2%	5.2%	5.6%
Net margin	0.0%	3.8%	3.3%	4.7%	4.4%	3.0%	3.5%	2.7%
Current ratio	1.04×	0.94×	0.97×	1.07×	1.13×	1.1×	1.01×	0.98×
Debt / equity	0.26×	0.27×	0.29×	0.31×	0.36×	0.68×	0.68×	0.45×
Interest coverage	0.37×	17.73×	23.46×	21.92×	13.3×	6.43×	10.09×	10.1×
Dividend yield	0.0%	0.0%	0.0%	0.6%	5.3%	0.0%	0.8%	0.0%
Payout ratio	0.0%	0.0%	0.0%	5.4%	83.4%	0.1%	15.7%	1.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	0.1%	11.2%	10.3%	13.7%	13.9%	13.1%	17.8%	12.9%
Return on invested capital	0.2%	6.9%	6.2%	9.8%	9.3%	4.8%	8.4%	10.2%
Return on assets	0.0%	4.0%	3.5%	4.7%	4.4%	3.0%	3.9%	3.2%
Free cash flow yield	12.9%	3.3%	3.8%	1.1%	3.3%	7.9%	5.8%	3.6%
Earnings yield	0.2%	21.6%	13.5%	11.0%	6.3%	4.0%	4.9%	4.2%
Enterprise value	SEK 71.3B	SEK 52.1B	SEK 85.4B	SEK 112.6B	SEK 168.8B	SEK 174.5B	SEK 180.2B	SEK 146.3B
Net debt / EBITDA	-0.83×	-0.41×	-0.3×	-0.75×	-0.85×	-0.84×	-0.52×	-0.61×
Cash conversion cycle (days)	25	28	21	-2	5	14	8	16