Volvo Car VOLCAR-B.ST
SwedenConsumer Cyclical · Auto ManufacturersNasdaq Estocolmo · SEK
16.62 SEK (+13.1%)
11 analysts
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Volvo Car AB is a premium automobile manufacturer based in Sweden, known for its focus on safety and electrification, designing, manufacturing, and selling vehicles globally.
Listed on Nasdaq Estocolmo · Symbol VOLCAR-B.ST · STO: VOLCAR-B · Currency SEK
Key points
from its scores- ✓Attractive valuation7.9
- ✕Weak growth0.9
- ✕Little competitive advantage1.4
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsHold only for investors with high risk tolerance and a long-term horizon, given the potential for re-rating if the electrification transition materializes, but with a clear risk that revenue decline and low profitability persist.
Volvo Car AB presents a very attractive valuation (P/E 4.67, EV/EBITDA 2.14) backed by a solid balance sheet (Net Debt/EBITDA 0.22), but suffers from a 16.9% revenue decline and very weak return on equity (ROE 3.65%), reflecting a business in transition with currently poor financial results.
The main risk is the sustained decline in revenue (-16.9%) and low profitability (operating margin 0.84%, ROE 3.65%), which could indicate structural business deterioration in a highly competitive automotive market undergoing a major shift towards electric vehicles.
Context and risks
There are no recent relevant news. The macro context of interest rates and commodities does not materially affect Volvo Car AB: its balance sheet is healthy (Net Debt/EBITDA of 0.22) and its automotive business does not depend directly on crude oil or European gas prices to a degree that justifies a specific adjustment.
Is Volvo Car stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 77% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 4.7 | 17.8 | −74% |
| EV / EBITDA | 2.1 | 11.2 | −81% |
| Price / book | 0.3 | 2.9 | −90% |
| Price / sales | 0.1 | 1.3 | −90% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.9 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 16.62 SEK, +13.1% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.3 (sector 5.7), Growth 0.9 (sector 5.9).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 4.7
- Forward P/E
- 6.3
- EV / EBITDA
- 2.1
- Price / book
- 0.3
- Price / sales
- 0.1
- Market cap
- 43.6B SEK
- Enterprise value
- 48.1B SEK
Profitability
- ROE
- 3.6%
- ROA
- 1.9%
- ROIC (approx.)
- 1.4%
- Gross margin
- 15.6%
- Operating margin
- 0.8%
- Net margin
- 2.8%
- Free cash flow
- −15.0B SEK
- FCF yield
- −34.5%
- Cash conversion
- −67%
Solvency
- Total debt
- 46.3B SEK
- Net debt
- 4.9B SEK
- Cash
- 41.4B SEK
- EBITDA
- 22.4B SEK
- Net debt / EBITDA
- 0.22
- Debt / equity
- 30.83
- Current ratio
- 1.01
- Quick ratio
- 0.40
Growth
- Revenue growth
- −16.9%
- EPS (TTM)
- 3.15 SEK
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.05
- Analyst consensus
- Hold (11)
- Target price
- 16.62 SEK
- 52-week range
- 13.90 – 36.54
Recent news
All VOLCAR-B.ST news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Volvo Car
Is Volvo Car stock cheap or expensive?
On P/E and EV / EBITDA, it trades 77% below the Consumer Cyclical median on average. Valuation score: 7.9 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 16.62 SEK, +13.1% versus the price. This is not investment advice.
What score does Volvo Car get on MeridIAn Screener?
It scores 4.4 out of 10, rank 1,912 of 2,130 (better than 10% of the companies analysed). Its strongest category is Valuation (7.9) and its weakest, Growth (0.9). Analysis of 08/10/2026.
What is Volvo Car's P/E ratio?
Its P/E is 4.7: the share price equals 4.7 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 6.3.
How much is Volvo Car worth on the stock market?
Its market capitalisation is 43.6B SEK and its enterprise value, debt included, is 48.1B SEK.
How much debt does Volvo Car have?
Its net debt (debt minus cash) is 4.9B SEK. That is 0.22 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Volvo Car pay a dividend?
It pays no dividend, or almost none.
How has Volvo Car stock performed over the last year?
It has fallen 27.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 13.90 and 36.54 SEK. Past performance does not guarantee future results.
What do analysts think of Volvo Car?
11 analysts cover it; their average recommendation is “Hold” and their average target is 16.62 SEK (+13.1% versus the price). It is an estimate, not market data.