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Volvo AB (Volvo AB) Cyclically Adjusted PS Ratio : 1.16 (As of Jun. 10, 2024)


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What is Volvo AB Cyclically Adjusted PS Ratio?

As of today (2024-06-10), Volvo AB's current share price is $26.00. Volvo AB's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was $22.50. Volvo AB's Cyclically Adjusted PS Ratio for today is 1.16.

The historical rank and industry rank for Volvo AB's Cyclically Adjusted PS Ratio or its related term are showing as below:

VLVLY' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.52   Med: 0.92   Max: 1.41
Current: 1.24

During the past years, Volvo AB's highest Cyclically Adjusted PS Ratio was 1.41. The lowest was 0.52. And the median was 0.92.

VLVLY's Cyclically Adjusted PS Ratio is ranked worse than
59.54% of 173 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1 vs VLVLY: 1.24

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Volvo AB's adjusted revenue per share data for the three months ended in Mar. 2024 was $6.197. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $22.50 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Volvo AB Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Volvo AB's Cyclically Adjusted PS Ratio 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.

* Premium members only.

Volvo AB Cyclically Adjusted PS Ratio Chart

Volvo AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.95 1.15 1.19 0.96 1.19

Volvo AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.06 1.06 1.04 1.19 1.30

Competitive Comparison of Volvo AB's Cyclically Adjusted PS Ratio

For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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's Cyclically Adjusted PS Ratio Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Volvo AB's Cyclically Adjusted PS Ratio falls into.



Volvo AB Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Volvo AB's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=26.00/22.5
=1.16

* 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.

Volvo AB's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Volvo AB's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=6.197/132.2054*132.2054
=6.197

Current CPI (Mar. 2024) = 132.2054.

Volvo AB Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 5.347 100.432 7.039
201409 4.642 100.161 6.127
201412 5.000 100.225 6.595
201503 4.309 99.950 5.700
201506 5.048 99.995 6.674
201509 4.312 100.228 5.688
201512 4.614 100.276 6.083
201603 4.232 100.751 5.553
201606 4.675 101.019 6.118
201609 3.964 101.138 5.182
201612 4.411 102.022 5.716
201703 4.245 102.022 5.501
201706 4.980 102.752 6.407
201709 4.692 103.279 6.006
201712 5.366 103.793 6.835
201803 5.321 103.962 6.767
201806 5.791 104.875 7.300
201809 5.078 105.679 6.353
201812 5.762 105.912 7.192
201903 5.675 105.886 7.086
201906 6.310 106.742 7.815
201909 5.002 107.214 6.168
201912 5.494 107.766 6.740
202003 4.570 106.563 5.670
202006 3.869 107.498 4.758
202009 4.269 107.635 5.244
202012 5.700 108.296 6.958
202103 5.413 108.360 6.604
202106 5.305 108.928 6.439
202109 4.852 110.338 5.814
202112 5.540 112.486 6.511
202203 5.416 114.825 6.236
202206 5.830 118.384 6.511
202209 5.181 122.296 5.601
202212 6.366 126.365 6.660
202303 6.165 127.042 6.416
202306 6.432 129.407 6.571
202309 5.875 130.224 5.964
202312 7.103 131.912 7.119
202403 6.197 132.205 6.197

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Volvo AB  (OTCPK:VLVLY) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Volvo AB Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Volvo AB's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Volvo AB (Volvo AB) Business Description

Address
Gropegardsgatan 2, Gothenburg, SWE, 417 15
Volvo AB drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase the customers' uptime and productivity.