Volvo Car ABCHIX:VOLCBS 73 Return-on-Tangible-Asset is 2.20% as of Mar. 2026, which is 48% below its 10-year median of 4.23. GuruFocus rates CHIX:VOLCBS with a GF Score™ of 73/100 and a GF Value™ of kr21.26 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Volvo Car AB ranks worse than 74.61% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Volvo Car AB's annualizedNet Income for the quarter that ended in Mar. 2026 was kr6,440 Mil. Volvo Car AB's average total tangible assets for the quarter that ended in Mar. 2026 was kr292,841 Mil. Therefore, Volvo Car AB's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.20%.
The historical rank and industry rank for Volvo Car AB's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:VOLCBs'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.06 Med: 4.23 Max: 6.07
Current: 0.2
During the past 8 years, Volvo Car AB's highest Return-on-Tangible-Asset was 6.07%. The lowest was 0.06%. And the median was 4.23%.
CHIX:VOLCBs's Return-on-Tangible-Asset is ranked worse than 74.61% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 3.11
vs CHIX:VOLCBs: 0.20
Volvo Car AB (CHIX:VOLCBs) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Volvo Car AB Return-on-Tangible-Asset Related Terms
Volvo Car AB Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Volvo Car AB's Return-on-Tangible-Asset 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.
CHIX:VOLCBS vs TSLA, GM, F: Return-on-Tangible-Asset Comparison
For the Auto Manufacturers subindustry, Volvo Car AB's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Car AB Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.20% mean?
Volvo Car AB (CHIX:VOLCBS) has a Return-on-Tangible-Asset of 2.20% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Volvo Car AB and its competitors. This is 48% below median its historical median of 4.23. Over the past decade, Volvo Car AB's Return-on-Tangible-Asset has ranged from 0.06 to 6.07. According to the industry distribution chart, Volvo Car AB ranks #996 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 74.6%.
Is Volvo Car AB's Return-on-Tangible-Asset too high?
Volvo Car AB's current Return-on-Tangible-Asset of 2.20% is 48% below median its 10-year median of 4.23. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 6.07. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.11. Volvo Car AB's value of 2.20% is 29.3% below this industry median. Based on the distribution chart, Volvo Car AB ranks #996 out of 1335 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Volvo Car AB has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's Return-on-Tangible-Asset compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #996 out of 1335 companies for Return-on-Tangible-Asset. This places Volvo Car AB in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.11. Volvo Car AB's value of 2.20% is 29.3% below this benchmark. Historically, Volvo Car AB's own Return-on-Tangible-Asset has ranged from 0.06 to 6.07 over the past decade. While the company's 10-year median is 4.23 vs. the industry median of 3.11, Volvo Car AB has consistently been below 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.11, based on 1,335 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo Car AB's current Return-on-Tangible-Asset of 2.20% is 29.3% below 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Volvo Car AB and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo Car AB's current Return-on-Tangible-Asset is 2.20%, which is 48% below median its own 10-year median of 4.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo Car AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo Car AB (CHIX:VOLCBS) is currently considered Modestly Undervalued. The stock's GF Value™ is kr21.26, compared to a current price of kr18.55 — trading 12.7% below its estimated fair value. The current Return-on-Tangible-Asset is 2.20%, which is 48% below median its 10-year median of 4.23 and 29.3% below the Vehicles & Parts industry median of 3.11. Volvo Car AB's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Volvo Car AB (CHIX:VOLCBS), the current Return-on-Tangible-Asset is 2.20% 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 Car AB (CHIX:VOLCBS) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of kr18.55 is trading 12.7% below its estimated GF Value™ of kr21.26.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for CHIX:VOLCBS:
Return-on-Tangible-Asset: 2.20% (48% below median its 10-year median of 4.23)
GF Value™: kr21.26 vs. price of kr18.55 (12.7% below fair value)
Industry Position: 29.3% below the Vehicles & Parts median (#996 of 1335)
No single metric tells the full story. See the CHIX:VOLCBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it has a presence in China, the USA; Sweden; Germany; the United Kingdom; Japan, and South Korea. The company generates maximum revenue from the sale of new cars.
73GF Score
Get the complete analysis for CHIX:VOLCBS
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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