Geely bought Volvo from Ford Motor Co. more than a decade ago in the biggest acquisition by a Chinese firm of a foreign car maker. It sought to float shares in the Swedish firm in 2018 but then pulled the deal, citing trade tensions and a downturn in automotive stocks.
Traditional carmakers have fallen out of favor in recent years, as Tesla Inc. has risen to be one of the world's most valuable companies, putting the focus on electric vehicles.
Many European firms have pivoted toward the electric sector. Volvo aims to make only fully electric vehicles by 2030, and also owns a 49.5 percent stake in electric car maker Polestar.
Gothenburg-based Volvo Cars aims to secure a valuation of roughly $20 billion, one of the sources said, while another mentioned a possible range of $20 billion to $30 billion.
A third source suggested a $16 billion valuation was more realistic, citing the firm's revenue outlook.
A $20 billion valuation for Volvo would be equivalent to six to seven times its earnings, a level some analysts say is high — although it would put it in line with rivals Daimler and BMW. Tesla's market valuation is about $745 billion. General Motors' valuation is about $74.5 billion.