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Telefonaktiebolaget LM Ericsson (publ) (ERIC-B) fair value: what the stock is really worth

As of Oct 14, 2026: fair value of Telefonaktiebolaget LM Ericsson (publ) SEK 193, price SEK 97.10, upside +98.3%, quality 78 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
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Technology · SE · ISIN SE0000108656

TL Telefonaktiebolaget LM Ericsson (publ) logo Broad data Oct 15, 2026

Telefonaktiebolaget LM Ericsson (publ)

ERIC-B · ST

Strongly undervaluedStrong Fair Value upside with high Quality.

The stock costs 50% less than our calculation considers fair.

Fair value kr 192.54 · Strongly undervalued (+98.3%)
Quality 78/100
Solidly profitable · 10.8% net margin (TTM)
Low debt
Generates free cash flow
3.1% dividend yield · Well covered
Ranks above peers (11/15)
Wide moat 73/100
Broad data
Weak Growth (revenue 5y +0.4 %/yr in SEK)

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

kr 127.35 kr 44.61 Fair Value kr 192.54 Jul 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 15, 2026.

How to read this chart

60‑month range kr 44.61 – kr 127.35 · fair‑value band kr 132.80 – kr 271.36 · the kr 97.10 price screens below the kr 192.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 15, 2026.

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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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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) (ERIC-B) currently trades at kr 97.10, while our model-based Fair Value estimate is kr 192.54, implying the stock looks roughly 49.6% undervalued today.

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Valuation

Bull case: the Growth Earnings group reads highest at a median of kr 192.54 per share, and 18 of the 23 models we run sit above the kr 97.10 price.

Bear case: the Asset-Based group reads lowest at kr 22.09, and 5 of the 23 models stay below the price. Data coverage for this calculation is high.

Scenario range: kr 132.80 (bear) to kr 271.36 (bull), the price of kr 97.10 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 78/100 (high 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 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 323B SEK (≈ $32.3B) · P/E ratio 12.9 · P/S ratio 1.55 · EPS (TTM) kr 7.38 · Dividend yield 3.1% · Net margin 12.0% · Return on equity 26.1% · Return on assets (EBIT) 6.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 73 out of 100 (medium confidence).

What moves the price

The share trades about 24% below its 52-week high and 15% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Technology peers we cover trades at −53% fair-value upside, at 98%, ERIC-B screens cheaper than that median.

Fair Value models

Bear kr 132.80 Fair Value kr 192.54 Bull kr 271.36
Price kr 97.10 · Upside +98.3%
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 (kr 3.46 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. Coverage ⓘCoverage = 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.
Best data coverage
FCF DCF kr 109.33 kr 157.11 kr 225.74 79
Growth DCF kr 112.27 kr 156.44 kr 217.07 78
Owner Earnings kr 118.78 kr 170.86 kr 245.67 76
All 23 models by family
DCF Models
FCF DCF kr 109.33 kr 157.11 kr 225.74 79
Owner Earnings kr 118.78 kr 170.86 kr 245.67 76
5Y Revenue Exit kr 96.10 kr 141.87 kr 198.13 72
5Y EBITDA Exit kr 133.73 kr 209.16 kr 293.86 74
5Y P/E Exit kr 142.98 kr 225.69 kr 308.68 70
10Y Revenue Exit kr 97.48 kr 139.41 kr 191.25 66
10Y EBITDA Exit kr 123.64 kr 185.02 kr 261.36 67
10Y P/E Exit kr 129.43 kr 196.23 kr 272.21 63
Earnings-Based
Graham-Dodd kr 58.19 kr 141.24 kr 182.56 62
PEG = 1.0 kr 25.10 kr 35.86 kr 46.61 55
EPV kr 70.72 kr 81.77 kr 91.44 72
Multiples
P/E Multiple kr 179.71 kr 239.61 kr 299.51 61
P/S Multiple kr 109.11 kr 145.48 kr 181.85 56
P/B Multiple kr 109.11 kr 145.48 kr 181.85 53
EV/EBIT kr 181.66 kr 240.74 kr 299.81 65
EV/EBITDA kr 167.64 kr 222.04 kr 276.43 66
EV/Revenue kr 94.04 kr 132.44 kr 170.83 52
Asset-Based
NCAV (Graham) kr 16.49 kr 22.09 kr 32.97 52
Growth DCF
Growth DCF kr 112.27 kr 156.44 kr 217.07 78
Rev-Margin DCF kr 96.10 kr 143.02 kr 193.86 72
Economic Profit
Residual Income kr 49.72 kr 60.62 kr 94.55 73
ROIC Compounder kr 73.70 kr 89.31 kr 106.04 71
Growth Earnings
Growth-Adj P/E kr 134.78 kr 192.54 kr 250.30 66

P/S and P/B multiple show the same value here: both are capped by the same earnings anchor (earnings per share times 17), because margin and return on equity do not support the sector multiple.

Open the full fair value analysis →

Quality Score breakdown

Overall quality 78/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 69
How much profit the company makes from its sales and capital
Quality Growth 68
Are margins and returns getting better?
Cashflow 63
Do the profits arrive as real cash?
Financial strength 69
Debt, balance sheet and risk of trouble
Investment 100
Does it invest with discipline instead of growing at any price?
Low Volatility 78
How calm the share price moves, does not count
Momentum 46
Price trend of the last 3 to 12 months, does not count
Near the 52-week high 51
Distance to the 52-week high, does not count
New shares 85
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

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
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
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). Over 10 years: −0.4% a year
Revenue growth 39 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.
+5.2%
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.
+7.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.5%
Dividend (yield on the price)3.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.10.1% vs 9.2%, steady
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% → 14%
2025 sits 203% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)

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).
−7.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
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.
+0.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (Sweden: IMF forecast 2.0% a year to 2030, 2.9% from 2016 to 2025) that is about −9.4% a year for the price and −1.3% for the forecasts.
Forecast 2026 (sales)−4.5%
Forecast 2027 (sales)+2.0%
Projected 2028 (sales)+2.0%
Projected 2029 (sales)+2.0%
Projected 2030 (sales)+2.0%

Watch ERIC-B, get fair value alerts →

Note from the team Oct 11, 2026
AI conclusion: Moderate moat stems from solid innovation in telecom infrastructure, yet faces offset from competitive pricing environment and average organizational signals.
Main risk: Shift toward 6G and additional spectrum demanding fresh equipment investments risks limiting value extension of installed bases via software, hitting upgrade spending pace.
Ericsson can lift 5G network performance by 25-30 percent through AI software on existing hardware, without new chips or radios. At the same time, the shift toward 6G and additional spectrum will eventually demand fresh equipment investments. Will software upgrades meaningfully stretch the value of installed bases, or will hardware refresh cycles continue to set the pace of spending?
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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 · 293 stocks

Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 78 · Top 25%
Fair Value upside +98.3% · Top 25%
Profitability
Return on equity (12 months) 26.1% · Top 25%
Return on assets 10.2% · Top 25%
Net margin (12 months) 10.8% · Top 25%
Operating margin (12 months) 12.5% · Top 25%
Growth and dividend
Revenue growth −6.1% · Below median
Dividend yield (12 months) 3.1% · Top 25%
Balance sheet
Debt / equity 0.27× · Highest 25%

Valuation Multiplesvs Communication Equipment median · lower = cheaper

P/E (12 months) 12.9× · Cheapest 25%
P/B 2.94× · Pricier than median
P/S (12 months) 1.42× · Cheaper than median
Price / free cash flow 10.6× · Cheaper than median
EV/EBITDA 8.7× · Cheapest 25%
PEG 1.93× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 0
FUTURE (revenue growth)0 · sector 55
PAST (return on equity)100 · sector 21
HEALTH (low debt)87 · sector 98
DIVIDEND (yield)62 · sector 24

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Cisco Systems, Inc CSCO $112.82 $124.10 +10% vs ERIC-B
Ubiquiti Inc UI $641.80 $705.98 +10% vs ERIC-B
Eoptolink Technology Inc 300502 ¥347.60 ¥289.12 −17% vs ERIC-B
Motorola Solutions, Inc MSI $456.28 $249.04 −45% vs ERIC-B
Zhongji Innolight Co 300308 ¥724.47 ¥342.18 −53% vs ERIC-B
Suzhou TFC Optical Communication Co 300394 ¥229.54 ¥87.34 −62% vs ERIC-B
Nokia Oyj NOKIA €9.54 €3.15 −67% vs ERIC-B
Foxconn Industrial Internet Co 601138 ¥52.05 ¥13.99 −73% vs ERIC-B
Yangtze Optical Fibre And Cable Joint Stock Limited 6869 HK$156.10 HK$32.78 −79% vs ERIC-B
Ciena Corporation CIEN $449.77 $48.70 −89% vs ERIC-B

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Frequently asked questions

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC-B) overvalued or undervalued?
As of Oct 15, 2026, our model estimates a fair value of kr 192.54 versus a price of kr 97.10, about +98% upside (undervalued).
What is the fair value of ERIC-B?
Our model-based fair value for Telefonaktiebolaget LM Ericsson (publ) is kr 192.54 (as of Oct 15, 2026), built from audited fundamentals. The current price: kr 97.10.
What is the quality score of ERIC-B?
Telefonaktiebolaget LM Ericsson (publ) has a Quality Score of 78/100. 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) (ERIC-B)?
Our model-based price target is the fair value of kr 192.54 (as of Oct 15, 2026) from 23 valuation models. Cautious scenario kr 132.80, optimistic scenario kr 271.36. 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 kr 192.54, about +98% upside versus a price of kr 97.10 (undervalued). Cautious scenario kr 132.80, optimistic scenario kr 271.36. The calculation is refreshed regularly with new filings.
What is the revenue of Telefonaktiebolaget LM Ericsson (publ) (ERIC-B)?
Telefonaktiebolaget LM Ericsson (publ) reported trailing-twelve-month revenue of about 228B SEK (latest available figure, as of Oct 15, 2026).
Does Telefonaktiebolaget LM Ericsson (publ) pay a dividend?
Telefonaktiebolaget LM Ericsson (publ) currently shows a dividend yield of about 3.09% relative to its recent price (as of Oct 15, 2026).
What growth is priced into Telefonaktiebolaget LM Ericsson (publ) (ERIC-B)?
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 -7.6 % per year for five years (discount rate 7.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.4 % per year. As of Oct 15, 2026.
What discount rate (WACC) does the fair value of ERIC-B use?
Our models discount Telefonaktiebolaget LM Ericsson (publ) at 7.9 %: a base by market capitalisation (large), damped by beta 0.51, country premium for Sweden. 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 -7.6 % per year a year over ten years, using the same discount rate (7.9 %) and the same formula as our fair value.
How much growth has Telefonaktiebolaget LM Ericsson (publ) (ERIC-B) delivered so far?
Over the past 5 years revenue at Telefonaktiebolaget LM Ericsson (publ) grew +0.4 % a year. The price currently implies -7.6 % 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) (ERIC-B) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Telefonaktiebolaget LM Ericsson (publ) (-7.6 % 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) (ERIC-B)?
The free-cash-flow yield on the price is 9.40 %: that much free cash flow Telefonaktiebolaget LM Ericsson (publ) produces per unit of market value. When it exceeds the discount rate of our models (7.9 %), 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) (ERIC-B)?
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 kr 192.54 per share (as of Oct 15, 2026), against a price of kr 97.10. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Telefonaktiebolaget LM Ericsson (publ) stock overvalued or undervalued in 2026?
As of Oct 15, 2026, ERIC-B trades below its calculated fair value: price kr 97.10, fair value kr 192.54, a gap of about +98% (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 ERIC-B?
No. The price is what the market pays today (kr 97.10); the fair value is what the company's own numbers justify (kr 192.54). For Telefonaktiebolaget LM Ericsson (publ) the two are kr 95.44 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 323B SEK (market capitalisation, as of Oct 15, 2026). Per share that is kr 97.10; our models calculate a fair value of kr 192.54 per share.
What do the bullish and bearish scenarios say about ERIC-B?
Our models span a range for Telefonaktiebolaget LM Ericsson (publ): cautious scenario kr 132.80, base kr 192.54, optimistic kr 271.36 per share (as of Oct 15, 2026, price kr 97.10). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ERIC-B?
Telefonaktiebolaget LM Ericsson (publ) trades at a price-to-earnings ratio of 12.9 (as of Oct 15, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of kr 192.54 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 10.8 (reported for FY2025: 11.4). Other multiples: PEG 1.9, P/B 2.9, P/S 1.4, EV/EBITDA 8.7.
What is the PEG ratio of ERIC-B?
The PEG ratio of Telefonaktiebolaget LM Ericsson (publ) is 1.93 (P/E divided by earnings growth, as of Oct 15, 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) (ERIC-B)?
Balance-sheet figures for Telefonaktiebolaget LM Ericsson (publ) (as of Oct 15, 2026): return on equity 26.1%, debt of 0.27 per unit of equity. They feed the Quality Score of 78/100, which measures business quality independently of the share price.
How far is ERIC-B from its 52-week high?
Telefonaktiebolaget LM Ericsson (publ) trades at kr 97.10, about 24% below its 52-week high of kr 127.35 and 15% above the low of kr 84.57 (as of Oct 14, 2026). Distance from the high says nothing about value: that is what the fair value of kr 192.54 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 Oct 15, 2026: price kr 97.10, calculated fair value kr 192.54 (+98%), Quality Score 78/100, from 23 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 ERIC-B calculated?
We run Telefonaktiebolaget LM Ericsson (publ) through 23 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 kr 192.54, 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 14.7 % above its aggregate fair value. Telefonaktiebolaget LM Ericsson (publ) currently trades 50 % 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) (ERIC-B)?
The closing price on Oct 14, 2026 was kr 97.10. Our model-based fair value is kr 192.54, about +98% 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 (78/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (kr 132.80). The market is more pessimistic than our downside scenario. A fairly wide model range (kr 132.80 to kr 271.36) leaves room in how you read the outcome.
Where does the earnings growth of Telefonaktiebolaget LM Ericsson (publ) (ERIC-B) come from?
Earnings per share at Telefonaktiebolaget LM Ericsson (publ) grew +4.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +0.4 %, EBIT margin +2.4 %, tax rate +0.5 %, residual (interest, one-offs) +1.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Telefonaktiebolaget LM Ericsson (publ)

How large is the market capitalisation of Telefonaktiebolaget LM Ericsson (publ) (ERIC-B)?
The market capitalisation of Telefonaktiebolaget LM Ericsson (publ) is 323B SEK (≈ $32.3B). 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) (ERIC-B)?
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) (ERIC-B)?
Earnings per share at Telefonaktiebolaget LM Ericsson (publ) are kr 7.38 (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) (ERIC-B)?
The dividend yield of Telefonaktiebolaget LM Ericsson (publ) is 3.1% (payout 38.3%, on adjusted earnings, reported 40.7%). 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) (ERIC-B)?
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) (ERIC-B)?
The return on equity (ROE) of Telefonaktiebolaget LM Ericsson (publ) is 26.1% (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) (ERIC-B)?
On an EBIT basis the return on assets of Telefonaktiebolaget LM Ericsson (publ) is 6.4% (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.
What is the operating margin of Telefonaktiebolaget LM Ericsson (publ) (ERIC-B)?
The operating margin of Telefonaktiebolaget LM Ericsson (publ) is 12.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Telefonaktiebolaget LM Ericsson (publ) (ERIC-B)?
Revenue at Telefonaktiebolaget LM Ericsson (publ) is growing −6.1% 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) (ERIC-B)?
Earnings per share at Telefonaktiebolaget LM Ericsson (publ) are growing −10.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Telefonaktiebolaget LM Ericsson (publ) (ERIC-B) carry?
The net debt of Telefonaktiebolaget LM Ericsson (publ) is 2.1B SEK (fiscal year 2025, ≈ 0.1 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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