Volvo AB (FRA:VOL3) Cyclically Adjusted PS Ratio: (As of Jul. 18, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:VOL3 Volvo AB FRA:VOL3
85 GF Score
Price €31.08
GF Value €22.11
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Volvo AB Cyclically Adjusted PS Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Volvo AB  (FRA:VOL3) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Volvo AB Cyclically Adjusted PS Ratio Related Terms


Volvo AB Cyclically Adjusted PS Ratio Historical Data

* Premium members only.

The historical data trend for Volvo AB's Cyclically Adjusted PS 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.

Volvo AB Cyclically Adjusted PS Ratio Chart

Volvo AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.18 0.92 1.16 1.15 1.24

Volvo AB Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PS 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 1.12 1.14 1.24 1.28 0.00

FRA:VOL3 vs CAT, DE, PCAR: Cyclically Adjusted PS Ratio Comparison

For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio vs Farm & Heavy Construction Machinery Industry

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

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


FRA:VOL3
85GF Score
Volvo AB FRA:VOL3
Cyclically Adjusted PS Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Volvo AB Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Volvo AB's Cyclically Adjusted Revenue per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Volvo AB's adjusted Revenue per Share data for the three months ended in Jun. 2026 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=5.666/134.1100*134.1100
=5.666

Current CPI (Jun. 2026) = 134.1100.

Volvo AB Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201609 3.532 101.138 4.683
201612 4.181 102.022 5.496
201703 3.969 102.022 5.217
201706 4.432 102.752 5.785
201709 3.936 103.279 5.111
201712 4.534 103.793 5.858
201803 4.315 103.962 5.566
201806 4.957 104.875 6.339
201809 4.352 105.679 5.523
201812 5.065 105.912 6.414
201903 5.022 105.886 6.361
201906 5.584 106.742 7.016
201909 4.542 107.214 5.681
201912 4.945 107.766 6.154
202003 4.136 106.563 5.205
202006 3.435 107.498 4.285
202009 3.624 107.635 4.515
202012 4.686 108.296 5.803
202103 4.547 108.360 5.628
202106 4.403 108.928 5.421
202109 4.124 110.338 5.012
202112 4.903 112.486 5.846
202203 4.918 114.825 5.744
202206 5.515 118.384 6.248
202209 5.233 122.296 5.739
202212 6.009 126.365 6.377
202303 5.758 127.042 6.078
202306 5.931 129.407 6.147
202309 5.500 130.224 5.664
202312 6.507 131.912 6.615
202403 5.702 132.205 5.784
202406 6.111 132.716 6.175
202409 5.068 132.304 5.137
202412 5.919 132.987 5.969
202503 5.469 132.825 5.522
202506 5.489 133.699 5.506
202509 4.949 133.480 4.972
202512 5.596 133.390 5.626
202603 5.058 133.560 5.079
202606 5.666 134.110 5.666

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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.

Is Volvo AB (FRA:VOL3) Overvalued in 2026?

Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued. The current stock price of €31.08 is trading 40.6% above its estimated GF Value™ of €22.11. GuruFocus considers Volvo AB to be Significantly Overvalued.

Key valuation signals for FRA:VOL3:

  • Cyclically Adjusted PS Ratio:
  • GF Value™: €22.11 vs. price of €31.08 (40.6% above fair value)
  • GF Score™: 85/100 with 8 warning signs

No single metric tells the full story. See the FRA:VOL3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Volvo AB Business Description

Address Gropegardsgatan 2, Gothenburg, SWE, SE-417 15
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.
85GF Score

Get the complete analysis for FRA:VOL3

Cyclically Adjusted PS Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€31.08
Price
€22.11
GF Value