Volvo ABVOLAF -1.64%92 Return-on-Tangible-Equity is 24.67% as of Mar. 2026, which is 21% below its 10-year median of 31.31. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $25.40 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 83.92% 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 AB's annualized net income for the quarter that ended in Mar. 2026 was $3,570 Mil. Volvo AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $14,472 Mil. Therefore, Volvo AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.67%.
The historical rank and industry rank for Volvo AB's Return-on-Tangible-Equity or its related term are showing as below:
VOLAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.17 Med: 31.31 Max: 38.86
Current: 24.6
During the past 13 years, Volvo AB's highest Return-on-Tangible-Equity was 38.86%. The lowest was 18.17%. And the median was 31.31%.
VOLAF's Return-on-Tangible-Equity is ranked better than 83.92% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs VOLAF: 24.60
Volvo AB (OTCPK:VOLAF) 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 AB Return-on-Tangible-Equity Related Terms
Volvo AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Volvo 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.
VOLAF vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo 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 AB Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Volvo 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 24.67% mean?
Volvo AB (VOLAF) has a Return-on-Tangible-Equity of 24.67% 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 AB and its competitors. This is 21% below median its historical median of 31.31. Over the past decade, Volvo AB's Return-on-Tangible-Equity has ranged from 18.17 to 38.86. According to the industry distribution chart, Volvo AB ranks #32 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 16.1%.
Is Volvo AB's Return-on-Tangible-Equity too high?
Volvo AB's current Return-on-Tangible-Equity of 24.67% is 21% below median its 10-year median of 31.31. Over the past 10 years, this metric has ranged from a low of 18.17 to a high of 38.86. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Volvo AB's value of 24.67% is 166.1% above this industry median. Based on the distribution chart, Volvo AB ranks #32 out of 199 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 Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #32 out of 199 companies for Return-on-Tangible-Equity. This places Volvo AB in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.27. Volvo AB's value of 24.67% is 166.1% above this benchmark. Historically, Volvo AB's own Return-on-Tangible-Equity has ranged from 18.17 to 38.86 over the past decade. While the company's 10-year median is 31.31 vs. the industry median of 9.27, 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 Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 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 AB's current Return-on-Tangible-Equity of 24.67% is 166.1% 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 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 AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Return-on-Tangible-Equity is 24.67%, which is 21% below median its own 10-year median of 31.31. 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 $25.40, compared to a current price of $34.15 — trading 34.4% above its estimated fair value. The current Return-on-Tangible-Equity is 24.67%, which is 21% below median its 10-year median of 31.31 and 166.1% above the Farm & Heavy Construction Machinery industry median of 9.27. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Volvo AB (VOLAF), the current Return-on-Tangible-Equity is 24.67% 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 34.4% above its estimated GF Value™ of $25.40.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Return-on-Tangible-Equity: 24.67% (21% below median its 10-year median of 31.31)
GF Value™: $25.40 vs. price of $34.15 (34.4% above fair value)
Industry Position: 166.1% above the Farm & Heavy Construction Machinery median (#32 of 199)
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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