Volvo ABVOLAF -1.64%92 5-Year Yield-on-Cost % is 2.71 as of Jul. 01, 2026, which is 8% below its 10-year median of 2.96. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.65 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 138 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 53.62% on this metric.
Volvo AB's yield on cost for the quarter that ended in Mar. 2026 was 2.71.
The historical rank and industry rank for Volvo AB's 5-Year Yield-on-Cost % or its related term are showing as below:
VOLAF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.92 Med: 2.96 Max: 4.91
Current: 2.71
During the past 13 years, Volvo AB's highest Yield on Cost was 4.91. The lowest was 1.92. And the median was 2.96.
VOLAF's 5-Year Yield-on-Cost % is ranked worse than 53.62% of 138
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 2.89
vs VOLAF: 2.71
Volvo AB (OTCPK:VOLAF) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Volvo AB 5-Year Yield-on-Cost % Related Terms
VOLAF vs CAT, DE, PCAR: 5-Year Yield-on-Cost % Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Volvo AB's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Volvo AB is calculated as
Volvo AB (VOLAF) has a 5-Year Yield-on-Cost % of 2.71 as of Jul. 01, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Volvo AB and its competitors. This is near median its historical median of 2.96. Over the past decade, Volvo AB's 5-Year Yield-on-Cost % has ranged from 1.92 to 4.91. According to the industry distribution chart, Volvo AB ranks #74 out of 138 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 53.6%.
Is Volvo AB's 5-Year Yield-on-Cost % too high?
Volvo AB's current 5-Year Yield-on-Cost % of 2.71 is near median its 10-year median of 2.96. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 4.91. The Farm & Heavy Construction Machinery industry median 5-Year Yield-on-Cost % is 2.89. Volvo AB's value of 2.71 is 6.2% below this industry median. Based on the distribution chart, Volvo AB ranks #74 out of 138 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's 5-Year Yield-on-Cost % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #74 out of 138 companies for 5-Year Yield-on-Cost %. This places Volvo AB in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.89. Volvo AB's value of 2.71 is 6.2% below this benchmark. Historically, Volvo AB's own 5-Year Yield-on-Cost % has ranged from 1.92 to 4.91 over the past decade. While the company's 10-year median is 2.96 vs. the industry median of 2.89, Volvo 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 5-Year Yield-on-Cost % for a Farm & Heavy Construction Machinery company?
The median 5-Year Yield-on-Cost % among Farm & Heavy Construction Machinery companies is 2.89, based on 138 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current 5-Year Yield-on-Cost % of 2.71 is 6.2% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median 5-Year Yield-on-Cost % is 2.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current 5-Year Yield-on-Cost % is 2.71, which is near median its own 10-year median of 2.96. 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 Modestly Overvalued. The stock's GF Value™ is $28.65, compared to a current price of $34.15 — trading 19.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.71, which is near median its 10-year median of 2.96 and 6.2% below the Farm & Heavy Construction Machinery industry median of 2.89. Volvo AB's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Volvo AB (VOLAF), the current 5-Year Yield-on-Cost % is 2.71 as of Jul. 01, 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 19.2% above its estimated GF Value™ of $28.65.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
5-Year Yield-on-Cost %: 2.71 (near median its 10-year median of 2.96)
GF Value™: $28.65 vs. price of $34.15 (19.2% above fair value)
Industry Position: 6.2% below the Farm & Heavy Construction Machinery median (#74 of 138)
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.
92GF Score
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