Volvo AB
OTC:VOLVF
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (6.8), the stock would be worth $25.46 (30% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 9.7 | $36.15 |
0%
|
| 3-Year Average | 6.8 | $25.46 |
-30%
|
| 5-Year Average | 6.5 | $24.35 |
-33%
|
| Industry Average | 15.4 | $57.19 |
+58%
|
| Country Average | 14.9 | $55.3 |
+53%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
$774.8B
|
/ |
Jan 2026
kr73B
|
= |
|
|
$774.8B
|
/ |
Dec 2026
kr77.7B
|
= |
|
|
$774.8B
|
/ |
Dec 2027
kr87.2B
|
= |
|
|
$774.8B
|
/ |
Dec 2028
kr94.1B
|
= |
|
Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| SE |
|
Volvo AB
OTC:VOLVF
|
645B USD | 9.7 | 18.7 | |
| US |
|
Caterpillar Inc
NYSE:CAT
|
378.5B USD | 28.2 | 44.2 | |
| US |
|
Cummins Inc
NYSE:CMI
|
88.3B USD | 18.5 | 32 | |
| US |
|
Paccar Inc
NASDAQ:PCAR
|
65.8B USD | 16 | 28.1 | |
| KR |
|
Hyundai Heavy Industries Co Ltd
KRX:329180
|
67.3T KRW | 27.1 | 45.8 | |
| US |
|
Westinghouse Air Brake Technologies Corp
NYSE:WAB
|
44.6B USD | 20.2 | 39 | |
| CN |
|
China CSSC Holdings Ltd
SSE:600150
|
274.5B CNY | 27.1 | 38.2 | |
| DE |
|
Daimler Truck Holding AG
XETRA:DTG
|
33.6B EUR | 10.7 | 17 | |
| JP |
|
Komatsu Ltd
TSE:6301
|
6.3T JPY | 9.3 | 15.7 | |
| JP |
|
Toyota Industries Corp
TSE:6201
|
6.2T JPY | 14.4 | 30.6 | |
| CN |
|
Weichai Power Co Ltd
SZSE:000338
|
243.8B CNY | 15.9 | 24.7 |
Market Distribution
| Min | 0.2 |
| 30th Percentile | 9.4 |
| Median | 14.9 |
| 70th Percentile | 19.4 |
| Max | 4 325.3 |
Other Multiples
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.