Volvo ABFRA:VOL4 +1.34%85 EV-to-FCF is 36.33 as of Jul. 12, 2026, which is 0% above its 10-year median of 36.26. GuruFocus rates FRA:VOL4 with a GF Score™ of 85/100 and a GF Value™ of €21.72 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 133 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 81.95% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Volvo AB's Enterprise Value is €78,105 Mil.
Volvo AB's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €2,150 Mil. Therefore, Volvo AB's EV-to-FCF for today is 36.33.
The historical rank and industry rank for Volvo AB's EV-to-FCF or its related term are showing as below:
FRA:VOL4'
s EV-to-FCF Range Over the Past 10 Years
Min: -1139.13 Med: 36.26 Max: 1663.75
Current: 37.23
During the past 13 years, the highest EV-to-FCF of Volvo AB was 1663.75. The lowest was -1139.13. And the median was 36.26.
FRA:VOL4's EV-to-FCF is ranked worse than 81.95% of 133
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 18.1
vs FRA:VOL4: 37.23
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Volvo AB's share price for today is €30.20.
Volvo AB's Earnings per Share (Diluted) 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 €1.483.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Volvo AB EV-to-FCF Related Terms
Volvo AB EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Volvo AB's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Volvo AB's EV-to-FCF falls into.
Volvo AB's current Enterprise Value is €78,105 Mil.
Volvo AB's Free Cash Flow 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 €2,150 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 (FRA:VOL4) has a EV-to-FCF of 36.33 as of Jul. 12, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Volvo AB and its competitors. This is near median its historical median of 36.26. According to the industry distribution chart, Volvo AB ranks #109 out of 133 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 82%.
Is Volvo AB's EV-to-FCF too high?
Volvo AB's current EV-to-FCF of 36.33 is near median its 10-year median of 36.26. The Farm & Heavy Construction Machinery industry median EV-to-FCF is 18.10. Volvo AB's value of 36.33 is 100.7% above this industry median. Based on the distribution chart, Volvo AB ranks #109 out of 133 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. 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 EV-to-FCF compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #109 out of 133 companies for EV-to-FCF. This places Volvo AB in the lower half of its industry. The industry median EV-to-FCF is 18.10. Volvo AB's value of 36.33 is 100.7% above this benchmark. While the company's 10-year median is 36.26 vs. the industry median of 18.10, 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-FCF for a Farm & Heavy Construction Machinery company?
The median EV-to-FCF among Farm & Heavy Construction Machinery companies is 18.10, based on 133 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current EV-to-FCF of 36.33 is 100.7% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median EV-to-FCF is 18.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current EV-to-FCF is 36.33, which is near median its own 10-year median of 36.26. 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:VOL4) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.72, compared to a current price of €30.20 — trading 39% above its estimated fair value. The current EV-to-FCF is 36.33, which is near median its 10-year median of 36.26 and 100.7% above the Farm & Heavy Construction Machinery industry median of 18.10. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Volvo AB (FRA:VOL4), the current EV-to-FCF is 36.33 as of Jul. 12, 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:VOL4) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of €30.20 is trading 39% above its estimated GF Value™ of €21.72.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for FRA:VOL4:
EV-to-FCF: 36.33 (near median its 10-year median of 36.26)
GF Value™: €21.72 vs. price of €30.20 (39% above fair value)
Industry Position: 100.7% above the Farm & Heavy Construction Machinery median (#109 of 133)
No single metric tells the full story. See the FRA:VOL4 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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