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Telefonaktiebolaget LM Ericsson (publ), (E1RI34) Fair Value & Analysis

Technology · BR · Market cap R$217B

TL Telefonaktiebolaget LM Ericsson (publ), E1RI34 · SA
PriceR$25.86
Fair ValueR$69.55
Upside+169.0%
Quality67/100
Watch Telefonaktiebolaget LM Ericsson (publ), for free — get notified when fair value or trend changes. Watch for free
Evidence: High Range R$49.46 – R$96.82

Fair value as of: Jun 24, 2026

From 24 valuation models · updated 20 days ago

Share price −16.6% over the past month.

Price vs Fair Value (12 months)

R$34.50 R$19.62 Fair Value R$69.55 Jul 2025 Jul 2026

12‑month range R$19.62 – R$34.50 · fair‑value band R$49.46 – R$96.82 · the R$25.86 price screens below the R$69.55 fair value. As of Jun 24, 2026.

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Analysis

Telefonaktiebolaget LM Ericsson (publ), (E1RI34) currently trades at R$25.86, while our model-based Fair Value estimate is R$69.55 — implying the stock looks roughly 169.0% undervalued today. We read business quality at 67/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Telefonaktiebolaget LM Ericsson (publ), generated revenue of R$240B at a net margin of 10.9%. Revenue declined 10.3% year over year. It earns a return on equity of 27.0%. Net debt stands at R$11.7B. Fundamentals as of Jun 24, 2026

Our scenario range runs from R$49.46 (bear case) to R$96.82 (bull case); at R$25.86, the current price sits below that range. The share trades about 25% below its 52-week high and 32% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -65% fair-value upside — at 169%, E1RI34 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) R$240B
Revenue growth (YoY) -10.3%
Net margin 10.9%
Return on equity 27.0%
Free cash flow R$29.2B FY2025
P/E ratio 16.1
More key figures
EPS (TTM) R$2.03
EPS growth (YoY) -78.5%
Net debt R$11.7B FY2023

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Telefonaktiebolaget LM Ericsson (publ), reported revenue of R$237B in FY2025 versus R$232B in FY2021, a compound +0.5%/yr. Reported net income was R$28.4B in FY2025, compounding +5.8%/yr from FY2021.

Revenue +0.5%/yr
FY21 R$232B
FY22 R$272B
FY23 R$263B
FY24 R$248B
FY25 R$237B
Net income +5.8%/yr
FY21 R$22.7B
FY22 R$18.7B
FY23 −R$26.4B
FY24 R$20.0M
FY25 R$28.4B

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Cite: Fair Value Calculator (2026). "Telefonaktiebolaget LM Ericsson (publ), Fair Value". https://www.fairvalue-calculator.com/stock/E1RI34

Recent news

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Frequently asked questions

Is Telefonaktiebolaget LM Ericsson (publ), (E1RI34) undervalued?
As of Jun 24, 2026, our model estimates a fair value of R$69.55 versus a price of R$25.86 — about +169% (undervalued). Model-based estimate, not financial advice.
What is the fair value of E1RI34?
Our model-based fair value for Telefonaktiebolaget LM Ericsson (publ), is R$69.55 (as of Jun 24, 2026), built from audited fundamentals. The current price is R$25.86.
What is the quality score of E1RI34?
Telefonaktiebolaget LM Ericsson (publ), has a Quality Score of 67/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Telefonaktiebolaget LM Ericsson (publ), (E1RI34)?
Telefonaktiebolaget LM Ericsson (publ), reported trailing-twelve-month revenue of about R$240B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of E1RI34?
The net profit margin of Telefonaktiebolaget LM Ericsson (publ), is about 10.9%, meaning it keeps roughly 10.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.