Volvo ABVOLAF -1.64%91 ROC (Joel Greenblatt) % is 23.55% as of Mar. 2026, which is 21% below its 10-year median of 29.81. GuruFocus rates VOLAF with a GF Score™ of 91/100 and a GF Value™ of $25.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 69.38% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Volvo AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 23.55%.
The historical rank and industry rank for Volvo AB's ROC (Joel Greenblatt) % or its related term are showing as below:
VOLAF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 18.37 Med: 29.81 Max: 40.89
Current: 25
During the past 13 years, Volvo AB's highest ROC (Joel Greenblatt) % was 40.89%. The lowest was 18.37%. And the median was 29.81%.
VOLAF's ROC (Joel Greenblatt) % is ranked better than 69.38% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 13.24
vs VOLAF: 25.00
Volvo AB's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 5.40% per year.
Volvo AB (OTCPK:VOLAF) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Volvo AB's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Volvo AB's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 23.55% mean?
Volvo AB (VOLAF) has a ROC (Joel Greenblatt) % of 23.55% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Volvo AB and its competitors. This is 21% below median its historical median of 29.81. Over the past decade, Volvo AB's ROC (Joel Greenblatt) % has ranged from 18.37 to 40.89. According to the industry distribution chart, Volvo AB ranks #64 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 30.6%.
Is Volvo AB's ROC (Joel Greenblatt) % too high?
Volvo AB's current ROC (Joel Greenblatt) % of 23.55% is 21% below median its 10-year median of 29.81. Over the past 10 years, this metric has ranged from a low of 18.37 to a high of 40.89. The Farm & Heavy Construction Machinery industry median ROC (Joel Greenblatt) % is 13.24. Volvo AB's value of 23.55% is 77.9% above this industry median. Based on the distribution chart, Volvo AB ranks #64 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Volvo AB has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's ROC (Joel Greenblatt) % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #64 out of 209 companies for ROC (Joel Greenblatt) %. This puts Volvo AB in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 13.24. Volvo AB's value of 23.55% is 77.9% above this benchmark. Historically, Volvo AB's own ROC (Joel Greenblatt) % has ranged from 18.37 to 40.89 over the past decade. While the company's 10-year median is 29.81 vs. the industry median of 13.24, 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 ROC (Joel Greenblatt) % for a Farm & Heavy Construction Machinery company?
The median ROC (Joel Greenblatt) % among Farm & Heavy Construction Machinery companies is 13.24, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current ROC (Joel Greenblatt) % of 23.55% is 77.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC (Joel Greenblatt) % is 13.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current ROC (Joel Greenblatt) % is 23.55%, which is 21% below median its own 10-year median of 29.81. 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 Significantly 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 ROC (Joel Greenblatt) % is 23.55%, which is 21% below median its 10-year median of 29.81 and 77.9% above the Farm & Heavy Construction Machinery industry median of 13.24. Volvo AB's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Volvo AB (VOLAF), the current ROC (Joel Greenblatt) % is 23.55% 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 Significantly Overvalued.
Key valuation signals for VOLAF:
ROC (Joel Greenblatt) %: 23.55% (21% below median its 10-year median of 29.81)
GF Value™: $25.40 vs. price of $34.15 (34.4% above fair value)
Industry Position: 77.9% above the Farm & Heavy Construction Machinery median (#64 of 209)
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.
91GF Score
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