Volvo AB
F:VOL1

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Volvo AB
F:VOL1
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Price: 29.61 EUR 0.24% Market Closed
Market Cap: €60.2B

P/FCFE

21.1
Current
47%
More Expensive
vs 3-y average of 14.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
21.1
=
Market Cap
€711.1B
/
Free Cash Flow to Equity
kr30.7B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
21.1
=
Market Cap
€711.1B
/
Free Cash Flow to Equity
kr30.7B

Valuation Scenarios

Volvo AB is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (14.4), the stock would be worth €20.21 (32% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-32%
Maximum Upside
+36%
Average Downside
7%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 21.1 €29.61
0%
3-Year Average 14.4 €20.21
-32%
5-Year Average 14.3 €20.11
-32%
Industry Average 28.8 €40.41
+36%
Country Average 21.3 €29.89
+1%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
SE
Volvo AB
F:VOL1
648.9B EUR 21.1 18.8
JP
Mitsubishi Logisnext Co Ltd
TSE:7105
106.9T JPY -27.6 -790
US
Caterpillar Inc
NYSE:CAT
416.3B USD 35.9 46.9
US
Cummins Inc
NYSE:CMI
90.8B USD 34.8 31.9
US
Paccar Inc
NASDAQ:PCAR
61.1B USD 30.5 24.7
KR
Hyundai Heavy Industries Co Ltd
KRX:329180
71.9T KRW 27.4 49
CN
China CSSC Holdings Ltd
SSE:600150
314.3B CNY -36.6 43.7
US
Westinghouse Air Brake Technologies Corp
NYSE:WAB
45B USD 11.3 37.2
CN
Weichai Power Co Ltd
SZSE:000338
271.9B CNY 20.3 26.2
DE
Daimler Truck Holding AG
XETRA:DTG
32.9B EUR 5.9 16.7
JP
Toyota Industries Corp
TSE:6201
6.1T JPY 45.9 27.4

Market Distribution

Lower than 99% of companies in Sweden
Percentile
1st
Based on 1 043 companies
1st percentile
2
Low
0.6 — 12.2
Typical Range
12.2 — 31.9
High
31.9 —
Distribution Statistics
Sweden
Min 0.6
30th Percentile 12.2
Median 21.3
70th Percentile 31.9
Max 19 008.8

Volvo AB
Glance View

Volvo AB, a venerable name in the heavy-duty vehicle industry, was born in the heart of Sweden, a country known for engineering prowess and innovation. Established in 1927, Volvo's journey has been forged on a steadfast commitment to quality, safety, and the environment. As a titan in the automotive sector, the company's core operations revolve around manufacturing trucks, buses, construction equipment, and marine and industrial engines. Volvo's truck segment, one of its most significant revenue streams, includes renowned brands like Volvo Trucks, Mack, and Renault Trucks, all operating in the global market with a reputation for durability and technological innovation. By focusing on the intersection between robust engineering and sustainability, Volvo emerges as a leader in introducing advanced driver-assistance systems and fuel-efficient, often hybrid technologies, thus marrying traditional manufacturing with modern ecological sensibilities. The company navigates the ever-evolving landscape of the automotive industry through a diversified portfolio. Besides its stronghold in trucks and busses, Volvo has made strategic investments in construction equipment and the development of power solutions, a move that aligns with the rising demand for infrastructure development and sustainable energy sources. Volvo Construction Equipment provides machinery that caters to varied industrial needs, while its engine operations support a plethora of applications, from boats to industrial power generation. The financial arm of the company, Volvo Financial Services, further complements its product range by offering tailored financial solutions to its clients, thereby enhancing both the appeal and accessibility of its products. As Volvo continues its transformative journey towards sustainable transport solutions, its steady growth and adaptability exemplify its role as a cornerstone of the global industrial renaissance.

VOL1 Intrinsic Value
27.14 EUR
Overvaluation 8%
Intrinsic Value
Price €29.61
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