AB Volvo (VOLV-A.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

-35.3%

SEK 198.37

vs SEK 306.40 price

Levered DCF

SEK 136.83

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.72

Distress zone

Rating

B+

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	17.49×	10.9×	10.89×	12.31×	13.19×	20.57×	8.97×	9.46×
P/B	3.38×	2.83×	3.05×	2.48×	3.07×	2.73×	2.32×	1.91×
P/S	1.26×	1.04×	0.98×	0.85×	1.16×	1.17×	0.74×	0.6×
EV / EBITDA	10.69×	8.15×	7.84×	8.07×	8.45×	9.82×	6.13×	6.33×
Gross margin	24.4%	27.3%	27.1%	23.6%	24.1%	23.4%	24.6%	22.4%
Operating margin	10.1%	12.6%	12.2%	9.7%	11.6%	8.1%	11.5%	8.8%
Net margin	7.2%	9.6%	9.0%	6.9%	8.8%	5.7%	8.3%	6.4%
Current ratio	1.15×	1.28×	1.24×	1.28×	1.26×	1.38×	1.37×	1.21×
Debt / equity	1.39×	1.33×	1.31×	1.26×	1.07×	1.09×	1.18×	1.09×
Interest coverage	26.67×	41.84×	39.96×	37.94×	36.91×	20.37×	29.59×	20.79×
Dividend yield	6.2%	6.7%	5.2%	6.6%	11.5%	2.8%	6.3%	3.7%
Payout ratio	109.2%	72.6%	57.1%	80.8%	152.0%	57.9%	56.7%	34.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.3%	26.0%	28.0%	20.1%	23.2%	13.3%	25.9%	20.2%
Return on invested capital	7.2%	9.4%	10.3%	7.5%	9.1%	5.8%	10.3%	8.3%
Return on assets	5.3%	7.1%	7.4%	5.2%	6.4%	3.8%	6.8%	5.2%
Free cash flow yield	4.5%	5.1%	1.5%	1.8%	2.7%	3.3%	5.3%	4.4%
Earnings yield	5.7%	9.2%	9.2%	8.1%	7.6%	4.9%	11.1%	10.6%
Enterprise value	SEK 777.3B	SEK 735B	SEK 702.8B	SEK 540.8B	SEK 533.1B	SEK 470B	SEK 423.3B	SEK 330.8B
Net debt / EBITDA	2.4×	2.06×	1.78×	2.06×	1.6×	1.52×	1.47×	1.82×
Cash conversion cycle (days)	121	132	111	110	109	105	99	-9