Telefonaktiebolaget LM Ericsson (publ)

OM:ERIC B Stock Report

Market Cap: SEK 387.5b

Telefonaktiebolaget LM Ericsson Valuation

Is ERIC B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ERIC B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ERIC B (SEK116.6) is trading below our estimate of future cash flow value (SEK122.62)

Significantly Below Future Cash Flow Value: ERIC B is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERIC B?

Key metric: As ERIC B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ERIC B. This is calculated by dividing ERIC B's market cap by their current earnings.
What is ERIC B's PE Ratio?
PE Ratio15.4x
EarningsSEK 25.17b
Market CapSEK 387.53b

Price to Earnings Ratio vs Peers

How does ERIC B's PE Ratio compare to its peers?

The above table shows the PE ratio for ERIC B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average58.9x
HMS HMS Networks
53.6x21.01%SEK 25.8b
HEXA B Hexagon
9.5x-31.67%SEK 212.1b
LUMEN LumenRadio
33.8xn/aSEK 802.7m
6869 Yangtze Optical Fibre And Cable Limited
138.9x44.16%HK$297.6b
ERIC B Telefonaktiebolaget LM Ericsson
15.4x-2.62%SEK 387.5b

Price-To-Earnings vs Peers: ERIC B is good value based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (58.9x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does ERIC B's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ERIC B 15.4xIndustry Avg. 33.8xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ERIC B is good value based on its Price-To-Earnings Ratio (15.4x) compared to the European Communications industry average (30.7x).

Price to Earnings Ratio vs Fair Ratio

What is ERIC B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERIC B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.4x
Fair PE Ratio30.9x

Price-To-Earnings vs Fair Ratio: ERIC B is good value based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (30.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ERIC B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 116.60
SEK 98.62
-15.42%
14.00%SEK 121.00SEK 68.00n/a21
Jun ’27SEK 122.70
SEK 98.62
-19.63%
14.00%SEK 121.00SEK 68.00n/a21
May ’27SEK 108.35
SEK 98.62
-8.98%
14.00%SEK 121.00SEK 68.00n/a21
Apr ’27SEK 108.30
SEK 97.00
-10.43%
13.93%SEK 121.00SEK 68.00n/a20
Mar ’27SEK 104.55
SEK 91.89
-12.10%
14.69%SEK 109.00SEK 65.00n/a19
Feb ’27SEK 96.66
SEK 91.89
-4.93%
14.69%SEK 109.00SEK 65.00n/a19
Jan ’27SEK 90.60
SEK 88.11
-2.75%
16.03%SEK 106.00SEK 62.00n/a18
Dec ’26SEK 91.26
SEK 88.11
-3.46%
16.03%SEK 106.00SEK 62.00n/a18
Nov ’26SEK 95.80
SEK 87.22
-8.96%
15.43%SEK 105.00SEK 62.00n/a18
Oct ’26SEK 78.60
SEK 78.35
-0.31%
18.94%SEK 99.00SEK 55.00n/a17
Sep ’26SEK 74.74
SEK 78.82
+5.46%
18.17%SEK 99.00SEK 56.00n/a17
Aug ’26SEK 70.26
SEK 78.82
+12.19%
18.17%SEK 99.00SEK 56.00n/a17
Jul ’26SEK 81.40
SEK 80.94
-0.56%
18.12%SEK 101.00SEK 57.00n/a17
Jun ’26SEK 81.48
SEK 80.94
-0.66%
17.64%SEK 101.00SEK 57.00SEK 122.7018
May ’26SEK 81.38
SEK 80.94
-0.54%
17.64%SEK 101.00SEK 57.00SEK 108.3518
Apr ’26SEK 79.18
SEK 82.78
+4.54%
16.76%SEK 102.00SEK 57.00SEK 108.3018
Mar ’26SEK 88.16
SEK 83.56
-5.22%
16.57%SEK 102.00SEK 57.00SEK 104.5518
Feb ’26SEK 83.86
SEK 83.56
-0.36%
16.57%SEK 102.00SEK 57.00SEK 96.6618
Jan ’26SEK 89.88
SEK 82.06
-8.71%
19.32%SEK 100.00SEK 45.00SEK 90.6018
Dec ’25SEK 88.68
SEK 79.36
-10.51%
19.33%SEK 100.00SEK 45.00SEK 91.2618
Nov ’25SEK 89.50
SEK 78.79
-11.96%
18.99%SEK 100.00SEK 45.00SEK 95.8017
Oct ’25SEK 75.64
SEK 69.50
-8.12%
22.56%SEK 98.00SEK 40.00SEK 78.6017
Sep ’25SEK 76.52
SEK 69.09
-9.71%
22.31%SEK 98.00SEK 40.00SEK 74.7417
Aug ’25SEK 73.32
SEK 69.81
-4.79%
21.88%SEK 98.00SEK 40.00SEK 70.2618
Jul ’25SEK 67.10
SEK 64.33
-4.12%
22.79%SEK 98.00SEK 40.00SEK 81.4018
Jun ’25SEK 64.58
SEK 64.00
-0.90%
21.90%SEK 98.00SEK 40.00SEK 81.4819
SEK 98.62
Fair Value
18.2% overvalued intrinsic discount
21
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/12 03:58
End of Day Share Price 2026/06/12 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Telefonaktiebolaget LM Ericsson (publ) is covered by 51 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Richard KramerArete Research Services LLP
John EadeArgus Research Company