Volvo ABVOLAF -1.64%91 10-Year RORE % is 8.34 as of Mar. 2026. 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 148 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 50.68% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Volvo AB's 10-Year RORE % for the quarter that ended in Mar. 2026 was 8.34%.
The industry rank for Volvo AB's 10-Year RORE % or its related term are showing as below:
VOLAF's 10-Year RORE % is ranked better than 50.68% of 148
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 8.33
vs VOLAF: 8.34
Volvo AB (OTCPK:VOLAF) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Volvo AB 10-Year RORE % Related Terms
Volvo AB 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Volvo AB's 10-Year RORE % 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 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Volvo AB's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
Volvo AB (VOLAF) has a 10-Year RORE % of 8.34 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Volvo AB and its competitors. According to the industry distribution chart, Volvo AB ranks #73 out of 148 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 49.3%.
Is Volvo AB's 10-Year RORE % too high?
Volvo AB's current 10-Year RORE % is 8.34. The Farm & Heavy Construction Machinery industry median 10-Year RORE % is 8.33. Volvo AB's value of 8.34 is 0.1% above this industry median. Based on the distribution chart, Volvo AB ranks #73 out of 148 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 10-Year RORE % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #73 out of 148 companies for 10-Year RORE %. This puts Volvo AB in the upper half of its industry. The industry median 10-Year RORE % is 8.33. Volvo AB's value of 8.34 is 0.1% 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 10-Year RORE % for a Farm & Heavy Construction Machinery company?
The median 10-Year RORE % among Farm & Heavy Construction Machinery companies is 8.33, based on 148 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current 10-Year RORE % of 8.34 is 0.1% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median 10-Year RORE % is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current 10-Year RORE % is 8.34. 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 10-Year RORE % is 8.34 and 0.1% above the Farm & Heavy Construction Machinery industry median of 8.33. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Volvo AB (VOLAF), the current 10-Year RORE % is 8.34 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:
10-Year RORE %: 8.34
GF Value™: $25.40 vs. price of $34.15 (34.4% above fair value)
Industry Position: 0.1% above the Farm & Heavy Construction Machinery median (#73 of 148)
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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