Volvo ABVOLVF 90 FCF Yield % is 3.58 as of Jun. 25, 2026, which is 4% above its 10-year median of 3.45. GuruFocus rates VOLVF with a GF Score™ of 90/100 and a GF Value™ of $24.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 212 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 54.25% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
The historical rank and industry rank for Volvo AB's FCF Yield % or its related term are showing as below:
VOLVF'
s FCF Yield % Range Over the Past 10 Years
Min: -1.26 Med: 3.45 Max: 8.24
Current: 3.58
During the past 13 years, the highest FCF Yield % of Volvo AB was 8.24%. The lowest was -1.26%. And the median was 3.45%.
VOLVF's FCF Yield % is ranked better than 54.25% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 2.725
vs VOLVF: 3.58
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Volvo AB FCF Yield % Related Terms
Volvo AB FCF Yield % Historical Data
* Premium members only.
The historical data trend for Volvo AB's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Volvo AB's FCF Yield % 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.
Volvo AB (VOLVF) has a FCF Yield % of 3.58 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Volvo AB and its competitors. This is near median its historical median of 3.45. According to the industry distribution chart, Volvo AB ranks #97 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 45.8%.
Is Volvo AB's FCF Yield % too high?
Volvo AB's current FCF Yield % of 3.58 is near median its 10-year median of 3.45. The Farm & Heavy Construction Machinery industry median FCF Yield % is 2.73. Volvo AB's value of 3.58 is 31.4% above this industry median. Based on the distribution chart, Volvo AB ranks #97 out of 212 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Volvo AB has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's FCF Yield % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #97 out of 212 companies for FCF Yield %. This puts Volvo AB in the upper half of its industry. The industry median FCF Yield % is 2.73. Volvo AB's value of 3.58 is 31.4% above this benchmark. While the company's 10-year median is 3.45 vs. the industry median of 2.73, 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 FCF Yield % for a Farm & Heavy Construction Machinery company?
The median FCF Yield % among Farm & Heavy Construction Machinery companies is 2.73, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current FCF Yield % of 3.58 is 31.4% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median FCF Yield % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current FCF Yield % is 3.58, which is near median its own 10-year median of 3.45. 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 (VOLVF) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.62, compared to a current price of $33.00 — trading 34% above its estimated fair value. The current FCF Yield % is 3.58, which is near median its 10-year median of 3.45 and 31.4% above the Farm & Heavy Construction Machinery industry median of 2.73. Volvo AB's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Volvo AB (VOLVF), the current FCF Yield % is 3.58 as of Jun. 25, 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 (VOLVF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $33.00 is trading 34% above its estimated GF Value™ of $24.62.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLVF:
FCF Yield %: 3.58 (near median its 10-year median of 3.45)
GF Value™: $24.62 vs. price of $33.00 (34% above fair value)
Industry Position: 31.4% above the Farm & Heavy Construction Machinery median (#97 of 212)
No single metric tells the full story. See the VOLVF 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.
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