Volvo ABVOLAF -1.64%91 Forward PE Ratio is 15.14 as of Jul. 02, 2026. GuruFocus rates VOLAF with a GF Score™ of 91/100 and a GF Value™ of $25.20 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 115 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 62.61% on this metric.
Volvo AB (OTCPK:VOLAF) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Volvo AB Forward PE Ratio Related Terms
Volvo AB Forward PE Ratio Historical Data
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The historical data trend for Volvo AB's Forward PE Ratio 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 AB Forward PE Ratio Chart
Volvo AB Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
10.11
14.86
13.35
9.54
11.11
15.02
12.20
10.95
12.58
11.34
13.22
Volvo AB Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
10.11
11.98
13.28
12.95
14.86
17.89
15.22
14.41
13.35
13.21
12.61
12.66
9.54
11.39
10.74
10.38
11.11
8.42
24.39
15.67
15.02
17.48
14.88
11.15
12.20
11.29
10.73
9.39
10.95
11.74
9.56
11.19
12.58
13.14
11.47
9.85
11.34
12.98
12.71
11.65
13.22
15.47
VOLAF vs CAT, DE, PCAR: Forward PE Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Volvo AB's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Volvo AB (VOLAF) has a Forward PE Ratio of 15.14 as of Jul. 02, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Volvo AB and its competitors. According to the industry distribution chart, Volvo AB ranks #72 out of 115 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 62.6%.
Is Volvo AB's Forward PE Ratio too high?
Volvo AB's current Forward PE Ratio is 15.14. The Farm & Heavy Construction Machinery industry median Forward PE Ratio is 13.21. Volvo AB's value of 15.14 is 14.6% above this industry median. Based on the distribution chart, Volvo AB ranks #72 out of 115 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 Forward PE Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #72 out of 115 companies for Forward PE Ratio. This places Volvo AB in the lower half of its industry. The industry median Forward PE Ratio is 13.21. Volvo AB's value of 15.14 is 14.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Farm & Heavy Construction Machinery company?
The median Forward PE Ratio among Farm & Heavy Construction Machinery companies is 13.21, based on 115 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current Forward PE Ratio of 15.14 is 14.6% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Forward PE Ratio is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Forward PE Ratio is 15.14. 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 $25.20, compared to a current price of $34.15 — trading 35.5% above its estimated fair value. The current Forward PE Ratio is 15.14 and 14.6% above the Farm & Heavy Construction Machinery industry median of 13.21. Volvo AB's overall GF Score™ is 91/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Volvo AB (VOLAF), the current Forward PE Ratio is 15.14 as of Jul. 02, 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 35.5% above its estimated GF Value™ of $25.20.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
Forward PE Ratio: 15.14
GF Value™: $25.20 vs. price of $34.15 (35.5% above fair value)
Industry Position: 14.6% above the Farm & Heavy Construction Machinery median (#72 of 115)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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