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Volvo ABFRA:VOL3 +0.33%85 Cyclically Adjusted PS Ratio is 1.41 as of Jul. 15, 2026, which is 37% above its 10-year median of 1.03. GuruFocus rates FRA:VOL3 with a GF Score™ of 85/100 and a GF Value™ of €22.11 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 60.36% on this metric.
The historical rank and industry rank for Volvo AB's Cyclically Adjusted PS Ratio or its related term are showing as below:
FRA:VOL3'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.61 Med: 1.03 Max: 1.48
Current: 1.41
During the past years, Volvo AB's highest Cyclically Adjusted PS Ratio was 1.48. The lowest was 0.61. And the median was 1.03.
FRA:VOL3's Cyclically Adjusted PS Ratio is ranked worse than 60.36% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.04
vs FRA:VOL3: 1.41
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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
Volvo AB's adjusted revenue per share data for the three months ended in Mar. 2026 was €5.058. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €21.54 for the trailing ten years ended in Mar. 2026.
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.
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.
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 PS Ratio for today is calculated as
* 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.
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.
What does a Cyclically Adjusted PS Ratio of 1.41 mean?
Volvo AB (FRA:VOL3) has a Cyclically Adjusted PS Ratio of 1.41 as of Jul. 15, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Volvo AB and its competitors. This is 37% above median its historical median of 1.03. Over the past decade, Volvo AB's Cyclically Adjusted PS Ratio has ranged from 0.61 to 1.48. According to the industry distribution chart, Volvo AB ranks #102 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 60.4%.
Is Volvo AB's Cyclically Adjusted PS Ratio too high?
Volvo AB's current Cyclically Adjusted PS Ratio of 1.41 is 37% above median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 1.48. The Farm & Heavy Construction Machinery industry median Cyclically Adjusted PS Ratio is 1.04. Volvo AB's value of 1.41 is 35.6% above this industry median. Based on the distribution chart, Volvo AB ranks #102 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Cyclically Adjusted PS Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #102 out of 169 companies for Cyclically Adjusted PS Ratio. This places Volvo AB in the lower half of its industry. The industry median Cyclically Adjusted PS Ratio is 1.04. Volvo AB's value of 1.41 is 35.6% above this benchmark. Historically, Volvo AB's own Cyclically Adjusted PS Ratio has ranged from 0.61 to 1.48 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.04, 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 Cyclically Adjusted PS Ratio for a Farm & Heavy Construction Machinery company?
The median Cyclically Adjusted PS Ratio among Farm & Heavy Construction Machinery companies is 1.04, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current Cyclically Adjusted PS Ratio of 1.41 is 35.6% 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 Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Cyclically Adjusted PS Ratio is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Cyclically Adjusted PS Ratio is 1.41, which is 37% above median its own 10-year median of 1.03. 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 (FRA:VOL3) is currently considered Significantly Overvalued. The stock's GF Value™ is €22.11, compared to a current price of €30.42 — trading 37.6% above its estimated fair value. The current Cyclically Adjusted PS Ratio is 1.41, which is 37% above median its 10-year median of 1.03 and 35.6% above the Farm & Heavy Construction Machinery industry median of 1.04. Volvo AB's overall GF Score™ is 85/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For Volvo AB (FRA:VOL3), the current Cyclically Adjusted PS Ratio is 1.41 as of Jul. 15, 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 (FRA:VOL3) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of €30.42 is trading 37.6% 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: 1.41 (37% above median its 10-year median of 1.03)
GF Value™: €22.11 vs. price of €30.42 (37.6% above fair value)
Industry Position: 35.6% above the Farm & Heavy Construction Machinery median (#102 of 169)
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.
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
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Cyclically Adjusted PS Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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