Volvo AB (STU:VOL1) Margin of Safety % (DCF Earnings Based): 11.15% (As of Jun. 24, 2026)


STU:VOL1 Volvo AB STU:VOL1
89 GF Score
Price €28.62
GF Value €21.77
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Volvo AB Margin of Safety % (DCF Earnings Based)?

Volvo AB STU:VOL1 -1.95% 89 Margin of Safety % (DCF Earnings Based) is 11.15% as of Jun. 24, 2026. GuruFocus rates STU:VOL1 with a GF Score™ of 89/100 and a GF Value™ of €21.77 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Volvo AB's Predictability Rank is 4-Stars. Volvo AB's intrinsic value calculated from the Discounted Earnings model is €32.21 and current share price is €28.62. Consequently,

Volvo AB's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 11.15%.

STU:VOL1 vs CAT, DE, PCAR: Margin of Safety % (DCF Earnings Based) Comparison

For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Volvo AB's Margin of Safety % (DCF Earnings Based) falls into.


STU:VOL1
89GF Score
Volvo AB STU:VOL1
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Volvo AB Margin of Safety % (DCF Earnings Based) Calculation

Volvo AB's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(32.21-28.62)/32.21
=11.15 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of 11.15% mean?
Volvo AB (STU:VOL1) has a Margin of Safety % (DCF Earnings Based) of 11.15% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Volvo AB.
Is Volvo AB's Margin of Safety % (DCF Earnings Based) too high?
Volvo AB's current Margin of Safety % (DCF Earnings Based) is 11.15%. Overall, Volvo AB has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Margin of Safety % (DCF Earnings Based) compare to CAT and DE?
Volvo AB's Margin of Safety % (DCF Earnings Based) of 11.15% can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Farm & Heavy Construction Machinery company?
A good Margin of Safety % (DCF Earnings Based) depends on the Farm & Heavy Construction Machinery industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Volvo AB. Volvo AB's current Margin of Safety % (DCF Earnings Based) is 11.15%. 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 (STU:VOL1) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.77, compared to a current price of €28.62 — trading 31.5% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 11.15%. Volvo AB's overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Volvo AB (STU:VOL1), the current Margin of Safety % (DCF Earnings Based) is 11.15% as of Jun. 24, 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 (STU:VOL1) Overvalued in 2026?

Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued. The current stock price of €28.62 is trading 31.5% above its estimated GF Value™ of €21.77. GuruFocus considers Volvo AB to be Significantly Overvalued.

Key valuation signals for STU:VOL1:

  • Margin of Safety % (DCF Earnings Based): 11.15%
  • GF Value™: €21.77 vs. price of €28.62 (31.5% above fair value)
  • GF Score™: 89/100 with 6 warning signs

No single metric tells the full story. See the STU:VOL1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Volvo AB Business Description

Address Gropegardsgatan 2, Gothenburg, SWE, SE-417 15
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.
89GF Score

Get the complete analysis for STU:VOL1

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€28.62
Price
€21.77
GF Value