Volvo Car ABVLVCY -8.69%74 Return-on-Tangible-Equity is 9.89% as of Mar. 2026, which is 66% below its 10-year median of 28.98. GuruFocus rates VLVCY with a GF Score™ of 74/100 and a GF Value™ of $5.03 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Volvo Car AB ranks worse than 76.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Volvo Car AB's annualized net income for the quarter that ended in Mar. 2026 was $691 Mil. Volvo Car AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6,986 Mil. Therefore, Volvo Car AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.89%.
The historical rank and industry rank for Volvo Car AB's Return-on-Tangible-Equity or its related term are showing as below:
VLVCY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.3 Med: 28.98 Max: 36.58
Current: 0.94
During the past 8 years, Volvo Car AB's highest Return-on-Tangible-Equity was 36.58%. The lowest was 0.30%. And the median was 28.98%.
VLVCY's Return-on-Tangible-Equity is ranked worse than 76.42% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs VLVCY: 0.94
Volvo Car AB (OTCPK:VLVCY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Volvo Car AB Return-on-Tangible-Equity Related Terms
Volvo Car AB Return-on-Tangible-Equity Historical Data
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The historical data trend for Volvo Car AB's Return-on-Tangible-Equity 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.
VLVCY vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Volvo Car AB's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.89% mean?
Volvo Car AB (VLVCY) has a Return-on-Tangible-Equity of 9.89% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Volvo Car AB and its competitors. This is 66% below median its historical median of 28.98. Over the past decade, Volvo Car AB's Return-on-Tangible-Equity has ranged from 0.30 to 36.58. According to the industry distribution chart, Volvo Car AB ranks #982 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 76.4%.
Is Volvo Car AB's Return-on-Tangible-Equity too high?
Volvo Car AB's current Return-on-Tangible-Equity of 9.89% is 66% below median its 10-year median of 28.98. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 36.58. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Volvo Car AB's value of 9.89% is 32% above this industry median. Based on the distribution chart, Volvo Car AB ranks #982 out of 1285 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Volvo Car AB has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #982 out of 1285 companies for Return-on-Tangible-Equity. This places Volvo Car AB in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Volvo Car AB's value of 9.89% is 32% above this benchmark. Historically, Volvo Car AB's own Return-on-Tangible-Equity has ranged from 0.30 to 36.58 over the past decade. While the company's 10-year median is 28.98 vs. the industry median of 7.49, Volvo Car 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 Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 9.89% is 32% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Volvo Car AB and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — 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-Equity is 9.89%, which is 66% below median its own 10-year median of 28.98. 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 (VLVCY) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.03, compared to a current price of $3.73 — trading 25.8% below its estimated fair value. The current Return-on-Tangible-Equity is 9.89%, which is 66% below median its 10-year median of 28.98 and 32% above the Vehicles & Parts industry median of 7.49. Volvo Car AB's overall GF Score™ is 74/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Volvo Car AB (VLVCY), the current Return-on-Tangible-Equity is 9.89% 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 (VLVCY) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of $3.73 is trading 25.8% below its estimated GF Value™ of $5.03.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for VLVCY:
Return-on-Tangible-Equity: 9.89% (66% below median its 10-year median of 28.98)
GF Value™: $5.03 vs. price of $3.73 (25.8% below fair value)
Industry Position: 32% above the Vehicles & Parts median (#982 of 1285)
No single metric tells the full story. See the VLVCY 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.
74GF Score
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