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Volvo AB (OSTO:VOLV B) Cyclically Adjusted Book per Share : kr71.53 (As of Mar. 2024)


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What is Volvo AB Cyclically Adjusted Book per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Volvo AB's adjusted book value per share for the three months ended in Mar. 2024 was kr79.054. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is kr71.53 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Volvo AB's average Cyclically Adjusted Book Growth Rate was 9.30% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 12.20% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 10.50% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 6.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Volvo AB was 14.30% per year. The lowest was -1.50% per year. And the median was 3.20% per year.

As of today (2024-05-18), Volvo AB's current stock price is kr284.20. Volvo AB's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was kr71.53. Volvo AB's Cyclically Adjusted PB Ratio of today is 3.97.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Volvo AB was 4.67. The lowest was 1.84. And the median was 3.14.


Volvo AB Cyclically Adjusted Book per Share Historical Data

The historical data trend for Volvo AB's Cyclically Adjusted Book per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Volvo AB Cyclically Adjusted Book per Share Chart

Volvo AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.98 50.39 54.57 62.01 70.38

Volvo AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Book per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 63.78 66.60 69.40 70.38 71.53

Competitive Comparison of Volvo AB's Cyclically Adjusted Book per Share

For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Volvo AB's Cyclically Adjusted PB Ratio Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Volvo AB's Cyclically Adjusted PB Ratio falls into.



Volvo AB Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Volvo AB's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book= Book Value per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=79.054/132.2054*132.2054
=79.054

Current CPI (Mar. 2024) = 132.2054.

Volvo AB Quarterly Data

Book Value per Share CPI Adj_Book
201406 37.658 100.432 49.572
201409 39.171 100.161 51.703
201412 38.596 100.225 50.912
201503 39.643 99.950 52.436
201506 39.161 99.995 51.776
201509 39.535 100.228 52.149
201512 41.271 100.276 54.412
201603 42.669 100.751 55.990
201606 41.360 101.019 54.128
201609 42.778 101.138 55.919
201612 47.287 102.022 61.277
201703 49.900 102.022 64.663
201706 48.456 102.752 62.346
201709 49.708 103.279 63.630
201712 51.918 103.793 66.130
201803 56.286 103.962 71.577
201806 57.241 104.875 72.158
201809 59.901 105.679 74.937
201812 60.690 105.912 75.757
201903 67.181 105.886 83.880
201906 62.299 106.742 77.161
201909 66.336 107.214 81.799
201912 68.157 107.766 83.614
202003 72.099 106.563 89.448
202006 67.790 107.498 83.371
202009 69.656 107.635 85.557
202012 71.452 108.296 87.227
202103 79.539 108.360 97.043
202106 59.392 108.928 72.084
202109 63.666 110.338 76.284
202112 69.362 112.486 81.522
202203 75.985 114.825 87.486
202206 74.813 118.384 83.548
202209 81.136 122.296 87.710
202212 80.020 126.365 83.718
202303 86.126 127.042 89.627
202306 79.781 129.407 81.507
202309 85.533 130.224 86.835
202312 87.433 131.912 87.628
202403 79.054 132.205 79.054

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


Volvo AB  (OSTO:VOLV B) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Volvo AB's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=284.20/71.53
=3.97

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Volvo AB was 4.67. The lowest was 1.84. And the median was 3.14.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Volvo AB Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Volvo AB's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Volvo AB (OSTO:VOLV B) Business Description

Address
Gropegardsgatan 2, Gothenburg, SWE, 417 15
Volvo AB drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase the customers' uptime and productivity.

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