Telefonaktiebolaget LM Ericsson (publ), (ERCG) Fair Value & Analysis
Technology · DE · Market cap €33.0B
Fair value as of: Jul 12, 2026
From 25 valuation models · updated 19 days ago
Fair value updated Jul 12, 2026, revised from €141.34 to €13.42 (−90.5%) since Jun 24, 2026. Share price −10.1% over the past month.
What matters now
- The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
- The price is below even our cautious bear case (€9.89). The market is more pessimistic than our downside scenario.
Price vs Fair Value (12 months)
12‑month range €5.92 – €11.74 · fair‑value band €9.89 – €16.93 · the €8.78 price screens below the €13.42 fair value. As of Jul 12, 2026.
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Telefonaktiebolaget LM Ericsson (publ), (ERCG) currently trades at €8.78, while our model-based Fair Value estimate is €13.42, implying the stock looks roughly 52.9% undervalued today. We read business quality at 70/100 (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 €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 €2.1B. Fundamentals as of Jul 12, 2026
Our scenario range runs from €9.89 (bear case) to €16.93 (bull case); at €8.78, the current price sits below that range. The share trades about 25% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -60% fair-value upside, at 53%, ERCG screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.
Quality Score breakdown
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Telefonaktiebolaget LM Ericsson (publ), reported revenue of €236B in FY2025 versus €232B in FY2021, a compound +0.4%/yr. Reported net income was €28.3B in FY2025, compounding +5.7%/yr from FY2021.
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Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
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|---|---|---|---|
| Cisco Systems, Inc CSCO | $121.53 | $43.05 | -65% |
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| Eoptolink Technology Inc 300502 | ¥579.97 | ¥252.67 | -56% |
| Nokia Oyj NOKIA | 291.00 CZK | 68.23 CZK | -77% |
| Motorola Solutions, Inc MSI | $410.34 | $175.94 | -57% |
| Suzhou TFC Optical Communication Co 300394 | ¥326.12 | ¥64.02 | -80% |
| Accton Technology Corporation 2345 | 2,090 TWD | 846.28 TWD | -60% |
| Ubiquiti Inc UI | $579.45 | $259.30 | -55% |
| ZTE Corporation 000063 | ¥38.42 | ¥19.23 | -50% |
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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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