AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company offers trucks for long-haulage, construction, mining, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, Arquus, cellcentric, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis, as well as associated transport systems under the Prevost and Nova Bus brands. It also provides construction equipment, including excavators, articulated and rigid haulers, wheel loaders, road construction machines, pavers, and compactors under the brand names of Volvo, and SDLG Trucks. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-road applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repair, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop battery packs for its trucks; and an agreement with NVIDIA and Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
AB Volvo (publ)
- Free Cash Flow (FCF) 11.81B
- Free Cash Flow To Equity (FCFE) -84.31B
- Dividends Paid -49.82B
- Debt Repayment -96.11B
- Net Stock Repurchased 0
Discounted Cash Flow
Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of AB Volvo (publ) stock.
| Assumptions | |||
|---|---|---|---|
| Forecast Period | |||
| Required Return | |||
| Low | Mid | High | |
| Revenue Growth | |||
| FCFE Margin | |||
| Perpetual Growth | |||
| Terminal P/FCFE | |||
The number of assumptions to make for each forecast.
The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.
It is generally recommended to select a longer period for more established companies with stable financial histories.
The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.
Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.
- 1 Year 9.48%
- 3 Years -3.9%
- 5 Years 3.37%
- 10 Years 3.12%
Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.
- 1 Year -22.65%
- 3 Years -16.86%
- 5 Years -8.49%
- 10 Years -5.51%
Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.
Values of between 2% and 5% are generally recommended.
Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.
This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.
- 1 Year -0.56
- 3 Years 0.33
- 5 Years 1.13
- 10 Years -1.19
| Chief Executive Officer (CEO) | |
|---|---|
| Full-Time Employees | 85.33K |
| Industry | Farm & Heavy Construction Machinery |
| Sector | Industrials |
| Country | SE |
| Website | https://www.volvogroup.com |