Volvo ABVOLAF -1.64%92 PEG Ratio is 1.96 as of Jun. 24, 2026, which is 51% above its 10-year median of 1.30. 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 103 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 65.05% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Volvo AB's PE Ratio without NRI is 19.80. Volvo AB's 5-Year EBITDA growth rate is 10.10%. Therefore, Volvo AB's PEG Ratio for today is 1.96.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Volvo AB's PEG Ratio or its related term are showing as below:
VOLAF'
s PEG Ratio Range Over the Past 10 Years
Min: 0.29 Med: 1.3 Max: 9.67
Current: 1.97
During the past 13 years, Volvo AB's highest PEG Ratio was 9.67. The lowest was 0.29. And the median was 1.30.
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Volvo AB (OTCPK:VOLAF) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Volvo AB PEG Ratio Related Terms
Volvo AB PEG Ratio Historical Data
* Premium members only.
The historical data trend for Volvo AB's PEG 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.
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Volvo AB's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Volvo AB (VOLAF) has a PEG Ratio of 1.96 as of Jun. 24, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Volvo AB and its competitors. This is 51% above median its historical median of 1.30. Over the past decade, Volvo AB's PEG Ratio has ranged from 0.29 to 9.67. According to the industry distribution chart, Volvo AB ranks #67 out of 103 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 65%.
Is Volvo AB's PEG Ratio too high?
Volvo AB's current PEG Ratio of 1.96 is 51% above median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 9.67. The Farm & Heavy Construction Machinery industry median PEG Ratio is 1.13. Volvo AB's value of 1.96 is 73.5% above this industry median. Based on the distribution chart, Volvo AB ranks #67 out of 103 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. 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 PEG Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #67 out of 103 companies for PEG Ratio. This places Volvo AB in the lower half of its industry. The industry median PEG Ratio is 1.13. Volvo AB's value of 1.96 is 73.5% above this benchmark. Historically, Volvo AB's own PEG Ratio has ranged from 0.29 to 9.67 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 1.13, 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 PEG Ratio for a Farm & Heavy Construction Machinery company?
The median PEG Ratio among Farm & Heavy Construction Machinery companies is 1.13, based on 103 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current PEG Ratio of 1.96 is 73.5% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median PEG Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current PEG Ratio is 1.96, which is 51% above median its own 10-year median of 1.30. 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 PEG Ratio is 1.96, which is 51% above median its 10-year median of 1.30 and 73.5% above the Farm & Heavy Construction Machinery industry median of 1.13. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Volvo AB (VOLAF), the current PEG Ratio is 1.96 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 (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:
PEG Ratio: 1.96 (51% above median its 10-year median of 1.30)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 73.5% above the Farm & Heavy Construction Machinery median (#67 of 103)
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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