Volvo Car ABVLVCY 74 Debt-to-EBITDA is 1.05 as of Mar. 2026, which is 15% above its 10-year median of 0.91. GuruFocus rates VLVCY with a GF Score™ of 74/100 and a GF Value™ of $5.42 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,094 Vehicles & Parts companies, Volvo Car AB ranks better than 65.72% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Volvo Car AB's Debt-to-EBITDA or its related term are showing as below:
VLVCY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.79 Med: 0.91 Max: 1.59
Current: 1.37
During the past 8 years, the highest Debt-to-EBITDA Ratio of Volvo Car AB was 1.59. The lowest was 0.79. And the median was 0.91.
VLVCY's Debt-to-EBITDA is ranked better than 65.72% of 1094
companies
in the Vehicles & Parts industry
Industry Median: 2.25
vs VLVCY: 1.37
Volvo Car AB (OTCPK:VLVCY) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Volvo Car AB Debt-to-EBITDA Related Terms
Volvo Car AB Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Volvo Car AB's Debt-to-EBITDA 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.
For the Auto Manufacturers subindustry, Volvo Car AB's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Car AB Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Volvo Car AB (VLVCY) has a Debt-to-EBITDA of 1.05 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Volvo Car AB. This is 15% above median its historical median of 0.91. Over the past decade, Volvo Car AB's Debt-to-EBITDA has ranged from 0.79 to 1.59. According to the industry distribution chart, Volvo Car AB ranks #375 out of 1094 companies in the Vehicles & Parts industry, placing it in the top 34.3%.
Is Volvo Car AB's Debt-to-EBITDA too high?
Volvo Car AB's current Debt-to-EBITDA of 1.05 is 15% above median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 1.59. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. Volvo Car AB's value of 1.05 is 53.3% below this industry median. Based on the distribution chart, Volvo Car AB ranks #375 out of 1094 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Volvo Car AB has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's Debt-to-EBITDA compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #375 out of 1094 companies for Debt-to-EBITDA. This puts Volvo Car AB in the upper half of its industry. The industry median Debt-to-EBITDA is 2.25. Volvo Car AB's value of 1.05 is 53.3% below this benchmark. Historically, Volvo Car AB's own Debt-to-EBITDA has ranged from 0.79 to 1.59 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 2.25, Volvo Car AB has consistently been below 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 Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,094 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo Car AB's current Debt-to-EBITDA of 1.05 is 53.3% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Volvo Car AB. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo Car AB's current Debt-to-EBITDA is 1.05, which is 15% above median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo Car AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo Car AB (VLVCY) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.42, compared to a current price of $4.35 — trading 19.7% below its estimated fair value. The current Debt-to-EBITDA is 1.05, which is 15% above median its 10-year median of 0.91 and 53.3% below the Vehicles & Parts industry median of 2.25. Volvo Car AB's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Volvo Car AB (VLVCY), the current Debt-to-EBITDA is 1.05 as of Mar. 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 Car AB (VLVCY) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of $4.35 is trading 19.7% below its estimated GF Value™ of $5.42.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for VLVCY:
Debt-to-EBITDA: 1.05 (15% above median its 10-year median of 0.91)
GF Value™: $5.42 vs. price of $4.35 (19.7% below fair value)
Industry Position: 53.3% below the Vehicles & Parts median (#375 of 1094)
No single metric tells the full story. See the VLVCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it has a presence in China, the USA; Sweden; Germany; the United Kingdom; Japan, and South Korea. The company generates maximum revenue from the sale of new cars.
74GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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