Volvo Car ABMIL:1VOLC 46 3-Year ROIIC % is -22.76 as of Dec. 2025. GuruFocus rates MIL:1VOLC with a GF Score™ of 46/100 and a GF Value™ of €2.73 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,257 Vehicles & Parts companies, Volvo Car AB ranks worse than 81.7% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Volvo Car AB's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -22.76%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Volvo Car AB's 3-Year ROIIC % or its related term are showing as below:
MIL:1VOLC's 3-Year ROIIC % is ranked worse than 81.7% of 1257
companies
in the Vehicles & Parts industry
Industry Median: 4.12
vs MIL:1VOLC: -22.76
Volvo Car AB (MIL:1VOLC) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Volvo Car AB 3-Year ROIIC % Related Terms
Volvo Car AB 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Volvo Car AB's 3-Year ROIIC % 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.
MIL:1VOLC vs TSLA, GM, F: 3-Year ROIIC % Comparison
For the Auto Manufacturers subindustry, Volvo Car AB's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's 3-Year ROIIC % falls into.
Volvo Car AB's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 93.087 (Dec. 2025) - 1269.8253036 (Dec. 2022) )
/
( 27950.938 (Dec. 2025) - 22492.723 (Dec. 2022) )
=
-1176.7383036
/
5458.215
=
-21.56%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Volvo Car AB (MIL:1VOLC) has a 3-Year ROIIC % of -22.76 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Volvo Car AB and its competitors. According to the industry distribution chart, Volvo Car AB ranks #1027 out of 1257 companies in the Vehicles & Parts industry, placing it in the top 81.7%.
Is Volvo Car AB's 3-Year ROIIC % too high?
Volvo Car AB's current 3-Year ROIIC % is -22.76. Based on the distribution chart, Volvo Car AB ranks #1027 out of 1257 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Volvo Car AB has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's 3-Year ROIIC % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #1027 out of 1257 companies for 3-Year ROIIC %. This places Volvo Car AB in the lower half of its industry. The industry median 3-Year ROIIC % is 4.12. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Vehicles & Parts company?
The median 3-Year ROIIC % among Vehicles & Parts companies is 4.12, based on 1,257 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Volvo Car AB and its competitors. For the Vehicles & Parts industry, the median 3-Year ROIIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo Car AB's current 3-Year ROIIC % is -22.76. 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 (MIL:1VOLC) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.73, compared to a current price of €2.02 — trading 25.9% below its estimated fair value. The current 3-Year ROIIC % is -22.76. Volvo Car AB's overall GF Score™ is 46/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Volvo Car AB (MIL:1VOLC), the current 3-Year ROIIC % is -22.76 as of Dec. 2025. 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 (MIL:1VOLC) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of €2.02 is trading 25.9% below its estimated GF Value™ of €2.73.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for MIL:1VOLC:
3-Year ROIIC %: -22.76
GF Value™: €2.73 vs. price of €2.02 (25.9% below fair value)
No single metric tells the full story. See the MIL:1VOLC 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.
46GF Score
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