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Volvo ABVOLAF 86 3-Year FCF Growth Rate is 38.10% as of Jun. 2026, which is 395% above its 10-year median of 7.70. GuruFocus rates VOLAF with a GF Score™ of 86/100 and a GF Value™ of $25.82 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 115 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 73.04% on this metric.
During the past 12 months, Volvo AB's average Free Cash Flow per Share Growth Rate was 18.30% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 38.10% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 10.80% 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 average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Volvo AB was 97.70% per year. The lowest was -206.60% per year. And the median was 7.70% per year.
Volvo AB (OTCPK:VOLAF) 3-Year FCF Growth Rate Explanation
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Volvo AB 3-Year FCF Growth Rate Related Terms
VOLAF vs CAT, DE, PCAR: 3-Year FCF Growth Rate Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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 3-Year FCF Growth Rate vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Volvo AB's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
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 average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 38.10% mean?
Volvo AB (VOLAF) has a 3-Year FCF Growth Rate of 38.10% as of Jun. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Volvo AB and its competitors. This is 395% above median its historical median of 7.70. According to the industry distribution chart, Volvo AB ranks #31 out of 115 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 27%.
Is Volvo AB's 3-Year FCF Growth Rate too high?
Volvo AB's current 3-Year FCF Growth Rate of 38.10% is 395% above median its 10-year median of 7.70. The Farm & Heavy Construction Machinery industry median 3-Year FCF Growth Rate is 13.70. Volvo AB's value of 38.10% is 178.1% above this industry median. Based on the distribution chart, Volvo AB ranks #31 out of 115 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Volvo AB has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's 3-Year FCF Growth Rate compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #31 out of 115 companies for 3-Year FCF Growth Rate. This puts Volvo AB in the upper half of its industry. The industry median 3-Year FCF Growth Rate is 13.70. Volvo AB's value of 38.10% is 178.1% above this benchmark. While the company's 10-year median is 7.70 vs. the industry median of 13.70, Volvo AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Farm & Heavy Construction Machinery company?
The median 3-Year FCF Growth Rate among Farm & Heavy Construction Machinery companies is 13.70, based on 115 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current 3-Year FCF Growth Rate of 38.10% is 178.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median 3-Year FCF Growth Rate is 13.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current 3-Year FCF Growth Rate is 38.10%, which is 395% above median its own 10-year median of 7.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.82, compared to a current price of $35.94 — trading 39.2% above its estimated fair value. The current 3-Year FCF Growth Rate is 38.10%, which is 395% above median its 10-year median of 7.70 and 178.1% above the Farm & Heavy Construction Machinery industry median of 13.70. Volvo AB's overall GF Score™ is 86/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Volvo AB (VOLAF), the current 3-Year FCF Growth Rate is 38.10% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $35.94 is trading 39.2% above its estimated GF Value™ of $25.82.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
3-Year FCF Growth Rate: 38.10% (395% above median its 10-year median of 7.70)
GF Value™: $25.82 vs. price of $35.94 (39.2% above fair value)
Industry Position: 178.1% above the Farm & Heavy Construction Machinery median (#31 of 115)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
86GF Score
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3-Year FCF Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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