Volvo AB
STO:VOLV B
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EV/GP
Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.
Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.
Valuation Scenarios
If EV/GP returns to its 3-Year Average (4.3), the stock would be worth kr224.92 (30% downside from current price).
| Scenario | EV/GP Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 6.1 | kr319.1 |
0%
|
| 3-Year Average | 4.3 | kr224.92 |
-30%
|
| 5-Year Average | 4.2 | kr220.84 |
-31%
|
| Industry Average | 7.9 | kr415.61 |
+30%
|
| Country Average | 5.6 | kr294.05 |
-8%
|
Forward EV/GP
Today’s price vs future gross profit
Peer Comparison
| Market Cap | EV/GP | P/E | ||||
|---|---|---|---|---|---|---|
| SE |
|
Volvo AB
STO:VOLV B
|
648.9B SEK | 6.1 | 18.8 | |
| JP |
M
|
Mitsubishi Logisnext Co Ltd
TSE:7105
|
106.9T JPY | 2.1 | -790 | |
| US |
|
Caterpillar Inc
NYSE:CAT
|
414B USD | 19 | 46.6 | |
| US |
|
Cummins Inc
NYSE:CMI
|
90.8B USD | 10.9 | 31.9 | |
| US |
|
Paccar Inc
NASDAQ:PCAR
|
61.1B USD | 9.5 | 24.7 | |
| KR |
|
Hyundai Heavy Industries Co Ltd
KRX:329180
|
71.9T KRW | 23.2 | 49 | |
| CN |
|
China CSSC Holdings Ltd
SSE:600150
|
314.3B CNY | 8.3 | 27.2 | |
| US |
|
Westinghouse Air Brake Technologies Corp
NYSE:WAB
|
45B USD | 12.4 | 37.2 | |
| CN |
|
Weichai Power Co Ltd
SZSE:000338
|
271.9B CNY | 5.4 | 26.2 | |
| DE |
|
Daimler Truck Holding AG
XETRA:DTG
|
32.9B EUR | 4.7 | 16.7 | |
| JP |
|
Toyota Industries Corp
TSE:6201
|
6.1T JPY | 6.9 | 27.4 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 3.3 |
| Median | 5.6 |
| 70th Percentile | 9.2 |
| Max | 18 023.5 |
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.