Volvo ABVOLAF -1.64%92 Interest Coverage is 25.83 as of Mar. 2026, which is 6% below its 10-year median of 27.44. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 75.74% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Volvo AB's
Operating Income
for the
three
months ended in Mar. 2026 was $1,175 Mil. Volvo AB's Interest Expense for the
three
months ended in Mar. 2026 was $-46 Mil.
Volvo AB's interest coverage for the quarter that ended in Mar. 2026 was 25.83.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Volvo AB's Interest Coverage or its related term are showing as below:
VOLAF'
s Interest Coverage Range Over the Past 10 Years
Min: 12.45 Med: 27.44 Max: 47.81
Current: 26.03
VOLAF's Interest Coverage is ranked better than 75.74% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs VOLAF: 26.03
Volvo AB (OTCPK:VOLAF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Volvo AB Interest Coverage Related Terms
Volvo AB Interest Coverage Historical Data
* Premium members only.
The historical data trend for Volvo AB's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
VOLAF vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Volvo AB's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 25.83 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Volvo AB and its competitors. This is near median its historical median of 27.44. Over the past decade, Volvo AB's Interest Coverage has ranged from 12.45 to 47.81. According to the industry distribution chart, Volvo AB ranks #41 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 24.3%.
Is Volvo AB's Interest Coverage too high?
Volvo AB's current Interest Coverage of 25.83 is near median its 10-year median of 27.44. Over the past 10 years, this metric has ranged from a low of 12.45 to a high of 47.81. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Volvo AB's value of 25.83 is 177.1% above this industry median. Based on the distribution chart, Volvo AB ranks #41 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #41 out of 169 companies for Interest Coverage. This places Volvo AB in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 9.32. Volvo AB's value of 25.83 is 177.1% above this benchmark. Historically, Volvo AB's own Interest Coverage has ranged from 12.45 to 47.81 over the past decade. While the company's 10-year median is 27.44 vs. the industry median of 9.32, 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 Interest Coverage for a Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current Interest Coverage of 25.83 is 177.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Interest Coverage is 25.83, which is near median its own 10-year median of 27.44. 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 Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Interest Coverage is 25.83, which is near median its 10-year median of 27.44 and 177.1% above the Farm & Heavy Construction Machinery industry median of 9.32. Volvo AB's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Volvo AB (VOLAF), the current Interest Coverage is 25.83 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 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 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Interest Coverage: 25.83 (near median its 10-year median of 27.44)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 177.1% above the Farm & Heavy Construction Machinery median (#41 of 169)
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.
92GF Score
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