Volvo AB
STO:VOLV B

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Volvo AB
STO:VOLV B
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Price: 319.1 SEK 0.28% Market Closed
Market Cap: kr648.9B

EV/GP

6.1
Current
42%
More Expensive
vs 3-y average of 4.3

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.

EV/GP
6.1
=
Enterprise Value
kr774.8B
/
Gross Profit
kr116.9B

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.

EV/GP
6.1
=
Enterprise Value
kr774.8B
/
Gross Profit
kr116.9B

Valuation Scenarios

Volvo AB is trading above its 3-year average

If EV/GP returns to its 3-Year Average (4.3), the stock would be worth kr224.92 (30% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-31%
Maximum Upside
+30%
Average Downside
9%
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

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in Sweden
Percentile
53rd
Based on 1 210 companies
53rd percentile
6.1
Low
0.1 — 3.3
Typical Range
3.3 — 9.2
High
9.2 —
Distribution Statistics
Sweden
Min 0.1
30th Percentile 3.3
Median 5.6
70th Percentile 9.2
Max 18 023.5

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.

VOLV B Intrinsic Value
353.12 SEK
Undervaluation 10%
Intrinsic Value
Price kr319.1
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