Volvo ABVOLAF -1.64%91 EV-to-EBIT is 17.62 as of Jul. 09, 2026, which is 52% above its 10-year median of 11.60. GuruFocus rates VOLAF with a GF Score™ of 91/100 and a GF Value™ of $24.77 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 175 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 69.14% on this metric.
The historical rank and industry rank for Volvo AB's EV-to-EBIT or its related term are showing as below:
VOLAF'
s EV-to-EBIT Range Over the Past 10 Years
Min: 6.51 Med: 11.6 Max: 20.78
Current: 18.32
During the past 13 years, the highest EV-to-EBIT of Volvo AB was 20.78. The lowest was 6.51. And the median was 11.60.
VOLAF's EV-to-EBIT is ranked worse than 69.14% of 175
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 12.96
vs VOLAF: 18.32
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Volvo AB's Enterprise Value for the quarter that ended in Mar. 2026 was $93,283 Mil.
Volvo AB's 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 $5,028 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.
Volvo AB EV-to-EBIT Related Terms
Volvo AB EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Volvo AB's EV-to-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.
For the Farm & Heavy Construction Machinery subindustry, Volvo 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 AB EV-to-EBIT vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Volvo AB's EV-to-EBIT falls into.
Volvo AB's current Enterprise Value is $88,583 Mil.
Volvo AB's 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 $5,028 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.
Volvo AB (VOLAF) has a EV-to-EBIT of 17.62 as of Jul. 09, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Volvo AB and its competitors. This is 52% above median its historical median of 11.60. Over the past decade, Volvo AB's EV-to-EBIT has ranged from 6.51 to 20.78. According to the industry distribution chart, Volvo AB ranks #121 out of 175 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 69.1%.
Is Volvo AB's EV-to-EBIT too high?
Volvo AB's current EV-to-EBIT of 17.62 is 52% above median its 10-year median of 11.60. Over the past 10 years, this metric has ranged from a low of 6.51 to a high of 20.78. The Farm & Heavy Construction Machinery industry median EV-to-EBIT is 12.96. Volvo AB's value of 17.62 is 36% above this industry median. Based on the distribution chart, Volvo AB ranks #121 out of 175 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's EV-to-EBIT compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #121 out of 175 companies for EV-to-EBIT. This places Volvo AB in the lower half of its industry. The industry median EV-to-EBIT is 12.96. Volvo AB's value of 17.62 is 36% above this benchmark. Historically, Volvo AB's own EV-to-EBIT has ranged from 6.51 to 20.78 over the past decade. While the company's 10-year median is 11.60 vs. the industry median of 12.96, 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 EV-to-EBIT for a Farm & Heavy Construction Machinery company?
The median EV-to-EBIT among Farm & Heavy Construction Machinery companies is 12.96, based on 175 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current EV-to-EBIT of 17.62 is 36% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median EV-to-EBIT is 12.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current EV-to-EBIT is 17.62, which is 52% above median its own 10-year median of 11.60. 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 $24.77, compared to a current price of $34.15 — trading 37.9% above its estimated fair value. The current EV-to-EBIT is 17.62, which is 52% above median its 10-year median of 11.60 and 36% above the Farm & Heavy Construction Machinery industry median of 12.96. Volvo AB's overall GF Score™ is 91/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Volvo AB (VOLAF), the current EV-to-EBIT is 17.62 as of Jul. 09, 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 37.9% above its estimated GF Value™ of $24.77.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
EV-to-EBIT: 17.62 (52% above median its 10-year median of 11.60)
GF Value™: $24.77 vs. price of $34.15 (37.9% above fair value)
Industry Position: 36% above the Farm & Heavy Construction Machinery median (#121 of 175)
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.
91GF Score
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