Telefonaktiebolaget LM Ericsson (publ) (E1RI34) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Telefonaktiebolaget LM Ericsson (publ) BRL 37.16, price BRL 23.94, upside +55.2%, quality 75 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 29, 2026.
How to read this chart
60‑month range R$10.28 – R$34.50 · fair‑value band R$26.72 – R$48.41 · the R$23.94 price screens below the R$37.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 29, 2026.
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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.
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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 and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
Stock analysis
Telefonaktiebolaget LM Ericsson (publ) (E1RI34) currently trades at R$23.94, while our model-based Fair Value estimate is R$37.16, implying the stock looks roughly 35.6% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R$46.33 per share, and 19 of the 24 models we run sit above the R$23.94 price.
Bear case: the Asset-Based group reads lowest at R$5.70, and 5 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: R$26.72 (bear) to R$48.41 (bull), the price of R$23.94 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 75/100 (high quality), in the Technology sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Telefonaktiebolaget LM Ericsson (publ) reported revenue of 237B SEK in FY2025 versus 232B SEK in FY2021, a compound +0.5%/yr. Reported net income was 28.4B SEK in FY2025, compounding +5.8%/yr from FY2021.
Key figures
Market cap R$171B (≈ $32.7B) · P/E ratio 12.9 · P/S ratio 1.55 · EPS (TTM) R$2.00 · Dividend yield 5.6% · Net margin 12.0% · Return on equity 27.0% · Return on assets (EBIT) 5.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 54 out of 100 (medium confidence).
What moves the price
The share trades about 31% below its 52-week high and 21% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −62% fair-value upside, at 55%, E1RI34 screens cheaper than that median.
Fair Value models
Bear R$26.72Fair Value R$37.16Bull R$48.41
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (R$1.51 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
−4.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−4.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.4%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.7%
’18
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’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+10.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.6%
Dividend (yield on the price)5.6%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 16%
2025 sits 203% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−15.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+0.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in SEK, Sweden: IMF forecast 2.0% a year to 2030, 2.9% from 2016 to 2025) that is about −17.5% a year for the price and −1.2% for the forecasts.
Compare Telefonaktiebolaget LM Ericsson (publ) with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Communication Equipment · 295 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score75 · Top 25%
Fair Value upside+106.6% · Top 25%
Profitability
Return on equity (TTM)27.0% · Top 25%
Return on assets6.9% · Top 25%
Net margin (TTM)10.9% · Top 25%
Operating margin (TTM)0.0% · Below median
Growth and dividend
Revenue growth−10.3% · Bottom 25%
Dividend yield (TTM)5.6% · Top 25%
Balance sheet
Debt / equity0.27× · Highest 25%
Valuation Multiplesvs Communication Equipment median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Telefonaktiebolaget LM Ericsson (publ) Fair Value". https://www.fairvalue-calculator.com/stock/E1RI34
Frequently asked questions
Is Telefonaktiebolaget LM Ericsson (publ) (E1RI34) overvalued or undervalued?
As of Sep 29, 2026, our model estimates a fair value of R$37.16 versus a price of R$23.94, about +55% upside (undervalued).
What is the fair value of E1RI34?
Our model-based fair value for Telefonaktiebolaget LM Ericsson (publ) is R$37.16 (as of Sep 29, 2026), built from audited fundamentals. The current price: R$23.94.
What is the quality score of E1RI34?
Telefonaktiebolaget LM Ericsson (publ) has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Our model-based price target is the fair value of R$37.16 (as of Sep 29, 2026) from 24 valuation models. Cautious scenario R$26.72, optimistic scenario R$48.41. It is a calculation from audited fundamentals, not an analyst target.
What is the Telefonaktiebolaget LM Ericsson (publ) stock forecast for 2026?
Our models put fair value at R$37.16, about +55% upside versus a price of R$23.94 (undervalued). Cautious scenario R$26.72, optimistic scenario R$48.41. The calculation is refreshed regularly with new filings.
What is the revenue of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Telefonaktiebolaget LM Ericsson (publ) reported trailing-twelve-month revenue of about 240B SEK (latest available figure, as of Sep 29, 2026).
Does Telefonaktiebolaget LM Ericsson (publ) pay a dividend?
Telefonaktiebolaget LM Ericsson (publ) currently shows a dividend yield of about 5.56% relative to its recent price (as of Sep 29, 2026).
What growth is priced into Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
For today's price to be fair in a discounted-cash-flow model, Telefonaktiebolaget LM Ericsson (publ) would have to grow free cash flow by -15.9 % per year for five years (discount rate 10.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.4 % per year. As of Sep 29, 2026.
What discount rate (WACC) does the fair value of E1RI34 use?
Our models discount Telefonaktiebolaget LM Ericsson (publ) at 10.8 %: a base by market capitalisation (large), damped by beta 0.52, country premium for Brazil. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Telefonaktiebolaget LM Ericsson (publ) that is -15.9 % per year a year over ten years, using the same discount rate (10.8 %) and the same formula as our fair value.
How much growth has Telefonaktiebolaget LM Ericsson (publ) (E1RI34) delivered so far?
Over the past 5 years revenue at Telefonaktiebolaget LM Ericsson (publ) grew +0.4 % a year. The price currently implies -15.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Telefonaktiebolaget LM Ericsson (publ) (E1RI34) growing?
The median revenue growth in the sector is +10.0 % a year. That is the yardstick for the growth priced into Telefonaktiebolaget LM Ericsson (publ) (-15.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The free-cash-flow yield on the price is 19.03 %: that much free cash flow Telefonaktiebolaget LM Ericsson (publ) produces per unit of market value. When it exceeds the discount rate of our models (10.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Telefonaktiebolaget LM Ericsson (publ) it is R$37.16 per share (as of Sep 29, 2026), against a price of R$23.94. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Telefonaktiebolaget LM Ericsson (publ) stock overvalued or undervalued in 2026?
As of Sep 29, 2026, E1RI34 trades below its calculated fair value: price R$23.94, fair value R$37.16, a gap of about +55% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of E1RI34?
No. The price is what the market pays today (R$23.94); the fair value is what the company's own numbers justify (R$37.16). For Telefonaktiebolaget LM Ericsson (publ) the two are R$13.22 per share apart. That gap is exactly why we show both numbers side by side.
How much is Telefonaktiebolaget LM Ericsson (publ) worth?
The market values Telefonaktiebolaget LM Ericsson (publ) at about R$171B (market capitalisation, as of Sep 29, 2026). Per share that is R$23.94; our models calculate a fair value of R$37.16 per share.
What do the bullish and bearish scenarios say about E1RI34?
Our models span a range for Telefonaktiebolaget LM Ericsson (publ): cautious scenario R$26.72, base R$37.16, optimistic R$48.41 per share (as of Sep 29, 2026, price R$23.94). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of E1RI34?
Telefonaktiebolaget LM Ericsson (publ) trades at a price-to-earnings ratio of 12.9 (as of Sep 29, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$37.16 is built from several models across several years. Other multiples: PEG 1.9, P/B 3.0, P/S 1.4, EV/EBITDA 8.7.
What is the PEG ratio of E1RI34?
The PEG ratio of Telefonaktiebolaget LM Ericsson (publ) is 1.88 (P/E divided by earnings growth, as of Sep 29, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Balance-sheet figures for Telefonaktiebolaget LM Ericsson (publ) (as of Sep 29, 2026): return on equity 27.0%, debt of 0.27 per unit of equity. They feed the Quality Score of 75/100, which measures business quality independently of the share price.
How far is E1RI34 from its 52-week high?
Telefonaktiebolaget LM Ericsson (publ) trades at R$23.94, about 31% below its 52-week high of R$34.50 and 21% above the low of R$19.80 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of R$37.16 is for.
Which stocks are comparable to Telefonaktiebolaget LM Ericsson (publ)?
From the same area (Technology) we also value Cisco Systems, Inc, Foxconn Industrial Internet Co, Zhongji Innolight Co, Eoptolink Technology Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Telefonaktiebolaget LM Ericsson (publ) stock attractive at the current price?
The data as of Sep 29, 2026: price R$23.94, calculated fair value R$37.16 (+55%), Quality Score 75/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of E1RI34 calculated?
We run Telefonaktiebolaget LM Ericsson (publ) through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R$37.16, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Telefonaktiebolaget LM Ericsson (publ) currently trades 36 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The closing price on Oct 1, 2026 was R$23.94. Our model-based fair value is R$37.16, about +55% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Telefonaktiebolaget LM Ericsson (publ) right now?
The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (R$26.72). The market is more pessimistic than our downside scenario. A fairly wide model range (R$26.72 to R$48.41) leaves room in how you read the outcome.
Key figures of Telefonaktiebolaget LM Ericsson (publ)
How large is the market capitalisation of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The market capitalisation of Telefonaktiebolaget LM Ericsson (publ) is R$171B (≈ $32.7B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The price-to-sales ratio of Telefonaktiebolaget LM Ericsson (publ) is 1.55 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Earnings per share at Telefonaktiebolaget LM Ericsson (publ) are R$2.00 (price ÷ EPS = P/E 12.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The dividend yield of Telefonaktiebolaget LM Ericsson (publ) is 5.6% (payout 66.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The net margin of Telefonaktiebolaget LM Ericsson (publ) is 12.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
The return on equity (ROE) of Telefonaktiebolaget LM Ericsson (publ) is 27.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
On an EBIT basis the return on assets of Telefonaktiebolaget LM Ericsson (publ) is 5.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
How fast is revenue growing at Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Revenue at Telefonaktiebolaget LM Ericsson (publ) is growing −10.3% versus a year earlier (3y avg −4.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Telefonaktiebolaget LM Ericsson (publ) (E1RI34)?
Earnings per share at Telefonaktiebolaget LM Ericsson (publ) are growing −78.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Telefonaktiebolaget LM Ericsson (publ) (E1RI34) carry?
The net debt of Telefonaktiebolaget LM Ericsson (publ) is 11.7B SEK (fiscal year 2023, ≈ 0.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Sep 29, 2026