VLVCY (Volvo Car AB) EBIT: $139 Mil (TTM As of Mar. 2026)


VLVCY Volvo Car AB VLVCY
74 GF Score
Price $4.03
GF Value $5.30
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is Volvo Car AB EBIT?

Volvo Car AB VLVCY -2.98% 74 EBIT is $139 Mil as of Mar. 2026. GuruFocus rates VLVCY with a GF Score™ of 74/100 and a GF Value™ of $5.30 (Modestly Undervalued). The stock has 5 warning signs investors should review.

Volvo Car AB's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $237 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $139 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Volvo Car AB's annualized ROC % for the quarter that ended in Mar. 2026 was 0.72%. Volvo Car AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.71%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Volvo Car AB's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.92%.


Volvo Car AB  (OTCPK:VLVCY) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Volvo Car AB's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=620.788 * ( 1 - 61.56% )/( (32729.434 + 33754.454)/ 2 )
=238.6309072/33241.944
=0.72 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=40154.086 - 6720.181 - ( 6194.114 - max(0, 16275.246 - 16979.717+6194.114))
=32729.434

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=40703.108 - 6595.651 - ( 4997.531 - max(0, 16677.328 - 17030.331+4997.531))
=33754.454

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Volvo Car AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=949.64/( ( (10694.679 + max(-5229.031, 0)) + (11120.294 + max(-4534.409, 0)) )/ 2 )
=949.64/( ( 10694.679 + 11120.294 )/ 2 )
=949.64/10907.4865
=8.71 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2285.576 + 6351.106 + 2148.921) - (6720.181 + 0 + 9294.453)
=-5229.031

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2151.934 + 7628.257 + 2252.609) - (6595.651 + 0 + 9971.558)
=-4534.409

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Volvo Car AB's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=139.149/4761.004
=2.92 %

* 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 Car AB EBIT Related Terms


Volvo Car AB EBIT Historical Data

* Premium members only.

The historical data trend for Volvo Car AB's EBIT 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 Car AB EBIT Chart

Volvo Car AB Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial 2,197.57 2,108.98 2,142.80 2,246.70 161.62

Volvo Car AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 168.07 -1,024.59 709.08 217.25 237.41

VLVCY vs TSLA, GM, F: EBIT Comparison

For the Auto Manufacturers subindustry, Volvo Car AB's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Volvo Car AB's EV-to-EBIT falls into.


VLVCY
74GF Score
Volvo Car AB VLVCY
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Volvo Car AB EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $139 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $139 Mil mean?
Volvo Car AB (VLVCY) has a EBIT of $139 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Volvo Car AB.
Is Volvo Car AB's EBIT too high?
Volvo Car AB's current EBIT is $139 Mil. 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 EBIT compare to TSLA and GM?
Volvo Car AB's EBIT of $139 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Volvo Car AB. Volvo Car AB's current EBIT is $139 Mil. 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 $5.30, compared to a current price of $4.03 — trading 24% below its estimated fair value. The current EBIT is $139 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Volvo Car AB (VLVCY), the current EBIT is $139 Mil 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 $4.03 is trading 24% below its estimated GF Value™ of $5.30. GuruFocus considers Volvo Car AB to be Modestly Undervalued.

Key valuation signals for VLVCY:

  • EBIT: $139 Mil
  • GF Value™: $5.30 vs. price of $4.03 (24% below fair value)
  • GF Score™: 74/100 with 5 warning signs

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 Business Description

Address Gunnar Engellaus vag 8, Gothenburg, SWE, 418 78
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

Get the complete analysis for VLVCY

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

$4.03
Price
$5.30
GF Value