Volvo ABXPRA:VOLVB 90 ROE % is 18.18% as of Mar. 2026, which is 16% below its 10-year median of 21.65. GuruFocus rates XPRA:VOLVB with a GF Score™ of 90/100 and a GF Value™ of Kč525.00. The stock has 6 warning signs investors should review. Among 204 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 83.82% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Volvo AB's annualized net income for the quarter that ended in Mar. 2026 was Kč75,469 Mil. Volvo AB's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was Kč415,116 Mil. Therefore, Volvo AB's annualized ROE % for the quarter that ended in Mar. 2026 was 18.18%.
The historical rank and industry rank for Volvo AB's ROE % or its related term are showing as below:
XPRA:VOLVB'
s ROE % Range Over the Past 10 Years
Min: 13.61 Med: 21.65 Max: 29.27
Current: 18.25
During the past 13 years, Volvo AB's highest ROE % was 29.27%. The lowest was 13.61%. And the median was 21.65%.
XPRA:VOLVB's ROE % is ranked better than 83.82% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.155
vs XPRA:VOLVB: 18.25
Volvo AB (XPRA:VOLVB) 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 AB ROE % Related Terms
Volvo AB ROE % Historical Data
* Premium members only.
The historical data trend for Volvo 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 Farm & Heavy Construction Machinery subindustry, Volvo 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 AB ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's ROE % distribution charts can be found below:
* The bar in red indicates where Volvo 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 AB (XPRA:VOLVB) has a ROE % of 18.18% 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 AB and its competitors. This is 16% below median its historical median of 21.65. Over the past decade, Volvo AB's ROE % has ranged from 13.61 to 29.27. According to the industry distribution chart, Volvo AB ranks #33 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 16.2%.
Is Volvo AB's ROE % too high?
Volvo AB's current ROE % of 18.18% is 16% below median its 10-year median of 21.65. Over the past 10 years, this metric has ranged from a low of 13.61 to a high of 29.27. The Farm & Heavy Construction Machinery industry median ROE % is 7.16. Volvo AB's value of 18.18% is 154.1% above this industry median. Based on the distribution chart, Volvo AB ranks #33 out of 204 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 90/100, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's ROE % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #33 out of 204 companies for ROE %. This places Volvo AB in the top 16% of its industry — outperforming the majority of peers. The industry median ROE % is 7.16. Volvo AB's value of 18.18% is 154.1% above this benchmark. Historically, Volvo AB's own ROE % has ranged from 13.61 to 29.27 over the past decade. While the company's 10-year median is 21.65 vs. the industry median of 7.16, 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 ROE % for a Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.16, based on 204 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 AB's current ROE % of 18.18% is 154.1% 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 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 AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current ROE % is 18.18%, which is 16% below median its own 10-year median of 21.65. 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?
Volvo AB (XPRA:VOLVB) has a current ROE % of 18.18%. The stock's GF Value™ is Kč525.00, compared to a current price of Kč700.00 — trading 33.3% above its estimated fair value. The current ROE % is 18.18%, which is 16% below median its 10-year median of 21.65 and 154.1% above the Farm & Heavy Construction Machinery industry median of 7.16. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Volvo AB (XPRA:VOLVB), the current ROE % is 18.18% 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 (XPRA:VOLVB) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of Kč700.00 is trading 33.3% above its estimated GF Value™ of Kč525.00.
Key valuation signals for XPRA:VOLVB:
ROE %: 18.18% (16% below median its 10-year median of 21.65)
GF Value™: Kč525.00 vs. price of Kč700.00 (33.3% above fair value)
Industry Position: 154.1% above the Farm & Heavy Construction Machinery median (#33 of 204)
No single metric tells the full story. See the XPRA:VOLVB 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.
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