Volvo ABVOLAF -1.64%92 Debt-to-EBITDA is 3.78 as of Mar. 2026, which is 35% above its 10-year median of 2.80. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $24.14 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 173 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 72.83% 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 AB's Debt-to-EBITDA or its related term are showing as below:
VOLAF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.26 Med: 2.8 Max: 3.72
Current: 3.64
During the past 13 years, the highest Debt-to-EBITDA Ratio of Volvo AB was 3.72. The lowest was 2.26. And the median was 2.80.
VOLAF's Debt-to-EBITDA is ranked worse than 72.83% of 173
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.68
vs VOLAF: 3.64
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 AB Debt-to-EBITDA Related Terms
Volvo AB Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Volvo 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 Farm & Heavy Construction Machinery subindustry, Volvo 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 AB Debt-to-EBITDA vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Volvo 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 AB (VOLAF) has a Debt-to-EBITDA of 3.78 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 AB. This is 35% above median its historical median of 2.80. Over the past decade, Volvo AB's Debt-to-EBITDA has ranged from 2.26 to 3.72. According to the industry distribution chart, Volvo AB ranks #126 out of 173 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 72.8%.
Is Volvo AB's Debt-to-EBITDA too high?
Volvo AB's current Debt-to-EBITDA of 3.78 is 35% above median its 10-year median of 2.80. Over the past 10 years, this metric has ranged from a low of 2.26 to a high of 3.72. The Farm & Heavy Construction Machinery industry median Debt-to-EBITDA is 1.68. Volvo AB's value of 3.78 is 125% above this industry median. Based on the distribution chart, Volvo AB ranks #126 out of 173 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Debt-to-EBITDA compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #126 out of 173 companies for Debt-to-EBITDA. This places Volvo AB in the lower half of its industry. The industry median Debt-to-EBITDA is 1.68. Volvo AB's value of 3.78 is 125% above this benchmark. Historically, Volvo AB's own Debt-to-EBITDA has ranged from 2.26 to 3.72 over the past decade. While the company's 10-year median is 2.80 vs. the industry median of 1.68, 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 Debt-to-EBITDA for a Farm & Heavy Construction Machinery company?
The median Debt-to-EBITDA among Farm & Heavy Construction Machinery companies is 1.68, based on 173 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 AB's current Debt-to-EBITDA of 3.78 is 125% 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 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 AB. For the Farm & Heavy Construction Machinery industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Debt-to-EBITDA is 3.78, which is 35% above median its own 10-year median of 2.80. 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 $24.14, compared to a current price of $34.15 — trading 41.5% above its estimated fair value. The current Debt-to-EBITDA is 3.78, which is 35% above median its 10-year median of 2.80 and 125% above the Farm & Heavy Construction Machinery industry median of 1.68. Volvo AB's overall GF Score™ is 92/100 with 9 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 AB (VOLAF), the current Debt-to-EBITDA is 3.78 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 AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 41.5% above its estimated GF Value™ of $24.14.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
Debt-to-EBITDA: 3.78 (35% above median its 10-year median of 2.80)
GF Value™: $24.14 vs. price of $34.15 (41.5% above fair value)
Industry Position: 125% above the Farm & Heavy Construction Machinery median (#126 of 173)
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.
92GF 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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