VOLVF (Volvo AB) ROCE %: 11.26% (As of Mar. 2026)


VOLVF Volvo AB VOLVF
90 GF Score
Price $34.35
GF Value $24.62
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Volvo AB ROCE %?

Volvo AB VOLVF +4.09% 90 ROCE % is 11.26% as of Mar. 2026. GuruFocus rates VOLVF with a GF Score™ of 90/100 and a GF Value™ of $24.62 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Volvo AB's annualized ROCE % for the quarter that ended in Mar. 2026 was 11.26%.

Volvo AB  (OTCPK:VOLVF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Volvo AB ROCE % Related Terms

Volvo AB ROCE % Historical Data

* Premium members only.

The historical data trend for Volvo AB's ROCE % 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.

Volvo AB ROCE % Chart

Volvo AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.70 12.60 17.95 16.22 13.14

Volvo AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.89 10.45 13.46 13.99 11.26
VOLVF
90GF Score
Volvo AB VOLVF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Volvo AB ROCE % Calculation

Volvo AB's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=5296.498/( ( (65049.067 - 25579.335) + (69789.638 - 28612.901) )/ 2 )
=5296.498/( (39469.732+41176.737)/ 2 )
=5296.498/40323.2345
=13.14 %

Volvo AB's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=4802.3/( ( (69789.638 - 28612.901) + (73249.796 - 29127.098) )/ 2 )
=4802.3/( ( 41176.737 + 44122.698 )/ 2 )
=4802.3/42649.7175
=11.26 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.26% mean?
Volvo AB (VOLVF) has a ROCE % of 11.26% as of Mar. 2026.
Is Volvo AB's ROCE % too high?
Volvo AB's current ROCE % is 11.26%. The Farm & Heavy Construction Machinery industry median ROCE % is 9.18. Volvo AB's value of 11.26% is 22.7% above this industry median. Overall, Volvo AB has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's ROCE % compare to CAT and DE?
Volvo AB's ROCE % of 11.26% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROCE % is 9.18. Volvo AB's value of 11.26% is 22.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Farm & Heavy Construction Machinery company?
The median ROCE % among Farm & Heavy Construction Machinery companies is 9.18, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current ROCE % of 11.26% is 22.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Farm & Heavy Construction Machinery industry, the median ROCE % is 9.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current ROCE % is 11.26%. 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 (VOLVF) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.62, compared to a current price of $34.35 — trading 39.5% above its estimated fair value. The current ROCE % is 11.26% and 22.7% above the Farm & Heavy Construction Machinery industry median of 9.18. Volvo AB's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Volvo AB (VOLVF), the current ROCE % is 11.26% 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 (VOLVF) Overvalued in 2026?

Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued. The current stock price of $34.35 is trading 39.5% above its estimated GF Value™ of $24.62. GuruFocus considers Volvo AB to be Significantly Overvalued.

Key valuation signals for VOLVF:

  • ROCE %: 11.26%
  • GF Value™: $24.62 vs. price of $34.35 (39.5% above fair value)
  • GF Score™: 90/100 with 6 warning signs
  • Industry Position: 22.7% above the Farm & Heavy Construction Machinery median

No single metric tells the full story. See the VOLVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Volvo AB Business Description

Address Gropegardsgatan 2, Gothenburg, SWE, SE-417 15
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.
90GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$34.35
Price
$24.62
GF Value