EV/EBITDA

9.7
Current
42%
More Expensive
vs 3-y average of 6.8

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.

EV/EBITDA
9.7
=
Enterprise Value
$774.8B
/
EBITDA
kr73B

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.

EV/EBITDA
9.7
=
Enterprise Value
$774.8B
/
EBITDA
kr73B

Valuation Scenarios

Volvo AB is trading above its 3-year average

If EV/EBITDA returns to its 3-Year Average (6.8), the stock would be worth $25.46 (30% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-33%
Maximum Upside
+58%
Average Upside
12%
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
=
9.7
Current
$774.8B
/
Dec 2026
kr77.7B
=
10
Forward
$774.8B
/
Dec 2027
kr87.2B
=
8.9
Forward
$774.8B
/
Dec 2028
kr94.1B
=
8.2
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
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

Lower than 97% of companies in Sweden
Percentile
3nd
Based on 1 230 companies
3nd percentile
1.1
Low
0.2 — 9.4
Typical Range
9.4 — 19.4
High
19.4 —
Distribution Statistics
Sweden
Min 0.2
30th Percentile 9.4
Median 14.9
70th Percentile 19.4
Max 4 325.3

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.

VOLVF Intrinsic Value
31.8 USD
Overvaluation 12%
Intrinsic Value
Price $36.15
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