Telefonaktiebolaget LM Ericsson (publ) (ERIBR) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Telefonaktiebolaget LM Ericsson (publ) €18.43, price €8.28, upside +122.6%, quality 74 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Telefonaktiebolaget LM Ericsson (publ)
ERIBR · HEClearly undervaluedStrong Fair Value upside, but quality is only moderate.
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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 €3.76 – €11.73 · fair‑value band €12.43 – €24.62 · the €8.28 price screens below the €18.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 29, 2026.
Company profile
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), (ERIBR) currently trades at €8.28, while our model-based Fair Value estimate is €18.43, implying the stock looks roughly 55.1% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of €18.45 per share, and 19 of the 25 models we run sit above the €8.28 price.
Bear case: the Asset-Based group reads lowest at €2.12, and 6 of the 25 models stay below the price. Evidence for this calculation is medium.
Scenario range: €12.43 (bear) to €24.62 (bull), the price of €8.28 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 74/100 (solid quality), in the Technology sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Telefonaktiebolaget LM Ericsson (publ), reported revenue of 236B SEK in FY2025 versus 232B SEK in FY2021, a compound +0.4%/yr. Reported net income was 28.3B SEK in FY2025, compounding +5.7%/yr from FY2021.
Key figures
Market cap €27.7B · P/E ratio 13.2 · P/S ratio 1.59 · EPS (TTM) €0.6600 · Net margin 12.0% · Return on equity 26.1% · Return on assets (EBIT) 7.2% · Revenue (TTM) 240B SEK.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 29% below its 52-week high and 18% 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 123%, ERIBR screens cheaper than that median.
Fair Value models
All 25 models by family
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Set up alert →Quality Score breakdown
Of which business quality 71 · Market factors (momentum, volatility) 47
Revenue & earnings trend
Growth Forecast
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Recent news
- Telefonaktiebolaget L M Ericsson's Dividend Analysis
- Telefonaktiebolaget LM Ericsson (OM:ERIC B) Wins Nex Tech Deal, Is The Valuation Already Full?
Compare Telefonaktiebolaget LM Ericsson (publ), with another stock
Price, fair value, quality and upside side by side.
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 · 299 stocks
Valuation Multiplesvs Communication Equipment median · lower = cheaper
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Valuation of the Finland market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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