Volvo Car ABVLVCY -2.98%74 ROE % is 4.33% as of Mar. 2026, which is 65% below its 10-year median of 12.31. GuruFocus rates VLVCY with a GF Score™ of 74/100 and a GF Value™ of $5.30 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Volvo Car AB ranks worse than 76.07% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Volvo Car AB's annualized net income for the quarter that ended in Mar. 2026 was $691 Mil. Volvo Car AB's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $15,945 Mil. Therefore, Volvo Car AB's annualized ROE % for the quarter that ended in Mar. 2026 was 4.33%.
The historical rank and industry rank for Volvo Car AB's ROE % or its related term are showing as below:
VLVCY'
s ROE % Range Over the Past 10 Years
Min: 0.12 Med: 12.31 Max: 16.77
Current: 0.4
During the past 8 years, Volvo Car AB's highest ROE % was 16.77%. The lowest was 0.12%. And the median was 12.31%.
VLVCY's ROE % is ranked worse than 76.07% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs VLVCY: 0.40
Volvo Car AB (OTCPK:VLVCY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Volvo Car AB ROE % Related Terms
Volvo Car AB ROE % Historical Data
* Premium members only.
The historical data trend for Volvo Car AB's ROE % 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.
For the Auto Manufacturers subindustry, Volvo Car AB's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's ROE % distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Volvo Car AB (VLVCY) has a ROE % of 4.33% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Volvo Car AB and its competitors. This is 65% below median its historical median of 12.31. Over the past decade, Volvo Car AB's ROE % has ranged from 0.12 to 16.77. According to the industry distribution chart, Volvo Car AB ranks #995 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 76.1%.
Is Volvo Car AB's ROE % too high?
Volvo Car AB's current ROE % of 4.33% is 65% below median its 10-year median of 12.31. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 16.77. The Vehicles & Parts industry median ROE % is 6.62. Volvo Car AB's value of 4.33% is 34.6% below this industry median. Based on the distribution chart, Volvo Car AB ranks #995 out of 1308 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 ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #995 out of 1308 companies for ROE %. This places Volvo Car AB in the lower half of its industry. The industry median ROE % is 6.62. Volvo Car AB's value of 4.33% is 34.6% below this benchmark. Historically, Volvo Car AB's own ROE % has ranged from 0.12 to 16.77 over the past decade. While the company's 10-year median is 12.31 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo Car AB's current ROE % of 4.33% is 34.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Volvo Car AB and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo Car AB's current ROE % is 4.33%, which is 65% below median its own 10-year median of 12.31. 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 $5.30, compared to a current price of $4.03 — trading 24% below its estimated fair value. The current ROE % is 4.33%, which is 65% below median its 10-year median of 12.31 and 34.6% below the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Volvo Car AB (VLVCY), the current ROE % is 4.33% 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 $4.03 is trading 24% below its estimated GF Value™ of $5.30.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for VLVCY:
ROE %: 4.33% (65% below median its 10-year median of 12.31)
GF Value™: $5.30 vs. price of $4.03 (24% below fair value)
Industry Position: 34.6% below the Vehicles & Parts median (#995 of 1308)
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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