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Volvo AB (Volvo AB) Shiller PE Ratio : 19.51 (As of Apr. 25, 2024)


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What is Volvo AB Shiller PE Ratio?

As of today (2024-04-25), Volvo AB's current share price is $26.15. Volvo AB's E10 for the quarter that ended in Mar. 2024 was $1.34. Volvo AB's Shiller PE Ratio for today is 19.51.

The historical rank and industry rank for Volvo AB's Shiller PE Ratio or its related term are showing as below:

VOLVF' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.62   Med: 20.28   Max: 37.73
Current: 19.81

During the past years, Volvo AB's highest Shiller PE Ratio was 37.73. The lowest was 12.62. And the median was 20.28.

VOLVF's Shiller PE Ratio is ranked better than
55.8% of 138 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 22.09 vs VOLVF: 19.81

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.

Volvo AB's adjusted earnings per share data for the three months ended in Mar. 2024 was $0.665. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.34 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Volvo AB Shiller PE Ratio Historical Data

The historical data trend for Volvo AB's Shiller PE Ratio 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 Shiller PE Ratio Chart

Volvo AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.74 23.23 22.61 17.15 18.78

Volvo AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE Ratio 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 18.18 17.80 16.74 18.78 19.86

Competitive Comparison of Volvo AB's Shiller PE Ratio

For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Farm & Heavy Construction Machinery Industry

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

* The bar in red indicates where Volvo AB's Shiller PE Ratio falls into.



Volvo AB Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Volvo AB's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=26.15/1.34
=19.51

* 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.

Volvo AB's E10 for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.665/130.9575*130.9575
=0.665

Current CPI (Mar. 2024) = 130.9575.

Volvo AB Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.182 100.432 0.237
201409 0.104 100.161 0.136
201412 -0.191 100.225 -0.250
201503 0.245 99.950 0.321
201506 0.307 99.995 0.402
201509 0.180 100.228 0.235
201512 0.150 100.276 0.196
201603 0.222 100.751 0.289
201606 0.117 101.019 0.152
201609 0.149 101.138 0.193
201612 0.257 102.022 0.330
201703 0.252 102.022 0.323
201706 0.330 102.752 0.421
201709 0.332 103.279 0.421
201712 0.274 103.793 0.346
201803 0.337 103.962 0.425
201806 0.515 104.875 0.643
201809 0.411 105.679 0.509
201812 0.140 105.912 0.173
201903 0.562 105.886 0.695
201906 0.581 106.742 0.713
201909 0.378 107.214 0.462
201912 0.348 107.766 0.423
202003 0.234 106.563 0.288
202006 -0.015 107.498 -0.018
202009 0.317 107.635 0.386
202012 0.542 108.296 0.655
202103 0.509 108.360 0.615
202106 0.522 108.928 0.628
202109 0.401 110.338 0.476
202112 0.432 112.486 0.503
202203 0.362 114.825 0.413
202206 0.512 118.384 0.566
202209 0.389 122.296 0.417
202212 0.313 126.365 0.324
202303 0.606 127.042 0.625
202306 0.492 129.407 0.498
202309 0.625 130.224 0.629
202312 0.577 130.958 0.577
202403 0.665 130.958 0.665

Add all the adjusted EPS together and divide 10 will get our E10.

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.


Volvo AB  (OTCPK:VOLVF) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Volvo AB Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Volvo AB's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Volvo AB (Volvo AB) 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.