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Volvo AB (OSTO:VOLV A) Cyclically Adjusted PS Ratio : 1.30 (As of May. 26, 2024)


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What is Volvo AB Cyclically Adjusted PS Ratio?

As of today (2024-05-26), Volvo AB's current share price is kr295.40. Volvo AB's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was kr227.43. Volvo AB's Cyclically Adjusted PS Ratio for today is 1.30.

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

OSTO:VOLV A' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.52   Med: 0.92   Max: 1.41
Current: 1.3

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.

OSTO:VOLV A's Cyclically Adjusted PS Ratio is ranked worse than
57.89% of 171 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.06 vs OSTO:VOLV A: 1.30

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 kr64.524. 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 kr227.43 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
=295.40/227.43
=1.30

* 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)
=64.524/132.2054*132.2054
=64.524

Current CPI (Mar. 2024) = 132.2054.

Volvo AB Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 35.746 100.432 47.055
201409 33.098 100.161 43.687
201412 38.148 100.225 50.321
201503 36.823 99.950 48.706
201506 41.724 99.995 55.164
201509 36.077 100.228 47.587
201512 39.191 100.276 51.670
201603 35.289 100.751 46.306
201606 38.824 101.019 50.809
201609 33.821 101.138 44.210
201612 40.609 102.022 52.624
201703 37.841 102.022 49.037
201706 43.214 102.752 55.601
201709 37.580 103.279 48.105
201712 45.034 103.793 57.362
201803 43.848 103.962 55.760
201806 50.970 104.875 64.253
201809 45.392 105.679 56.786
201812 52.034 105.912 64.952
201903 52.734 105.886 65.842
201906 59.367 106.742 73.529
201909 48.560 107.214 59.879
201912 51.822 107.766 63.574
202003 44.982 106.563 55.806
202006 36.019 107.498 44.298
202009 37.802 107.635 46.431
202012 47.672 108.296 58.197
202103 46.246 108.360 56.423
202106 44.545 108.928 54.064
202109 41.937 110.338 50.248
202112 50.358 112.486 59.186
202203 51.804 114.825 59.645
202206 58.506 118.384 65.337
202209 56.526 122.296 61.106
202212 66.061 126.365 69.114
202303 64.586 127.042 67.211
202306 69.268 129.407 70.766
202309 65.128 130.224 66.119
202312 72.857 131.912 73.019
202403 64.524 132.205 64.524

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  (OSTO:VOLV A) 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 (OSTO:VOLV A) 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.

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