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Telefonaktiebolaget LM Ericsson (publ), (ERIC-B) Fair Value & Analysis

Technology · SE · Market cap 330B SEK

TL Telefonaktiebolaget LM Ericsson (publ), ERIC-B · ST
Pricekr 95.84
Fair Valuekr 157.82
Upside+64.7%
Quality73/100
Watch Telefonaktiebolaget LM Ericsson (publ), for free, get notified when fair value or trend changes. Watch for free
Evidence: High Range kr 118.20 – kr 218.18

Fair value as of: Jul 16, 2026

From 23 valuation models · updated yesterday

Fair value updated Jul 16, 2026, revised from kr 156.73 to kr 157.82 (+0.7%) since Jul 7, 2026. Share price −12.7% over the past month.

Price vs Fair Value (12 months)

kr 127.35 kr 68.00 Fair Value kr 157.82 Jul 2025 Jul 2026

12‑month range kr 68.00 – kr 127.35 · fair‑value band kr 118.20 – kr 218.18 · the kr 95.84 price screens below the kr 157.82 fair value. As of Jul 16, 2026.

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Analysis

Telefonaktiebolaget LM Ericsson (publ), (ERIC-B) currently trades at kr 95.84, while our model-based Fair Value estimate is kr 157.82, implying the stock looks roughly 64.7% undervalued today. We read business quality at 73/100 (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 231B SEK 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 SEK. Fundamentals as of Jul 16, 2026

Our scenario range runs from kr 118.20 (bear case) to kr 218.18 (bull case); at kr 95.84, the current price sits below that range. The share trades about 25% below its 52-week high and 42% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -64% fair-value upside, at 65%, ERIC-B screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 228B SEK
Revenue growth (YoY) -6.1%
Net margin 10.8%
Return on equity 26.1%
Free cash flow 30.3B SEK FY2025
P/E ratio 13.5
More key figures
Operating margin 12.5%
EPS (TTM) kr 7.38
EPS growth (YoY) -10.9%
Net debt 2.1B SEK FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 16, 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 kr 237B in FY2025 versus kr 232B in FY2021, a compound +0.5%/yr. Reported net income was kr 28.4B in FY2025, compounding +5.8%/yr from FY2021.

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

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

Recent news

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Frequently asked questions

Is Telefonaktiebolaget LM Ericsson (publ), (ERIC-B) undervalued?
As of Jul 16, 2026, our model estimates a fair value of kr 157.82 versus a price of kr 95.84, about +65% (undervalued). Model-based estimate, not financial advice.
What is the fair value of ERIC-B?
Our model-based fair value for Telefonaktiebolaget LM Ericsson (publ), is kr 157.82 (as of Jul 16, 2026), built from audited fundamentals. The current price is kr 95.84.
What is the quality score of ERIC-B?
Telefonaktiebolaget LM Ericsson (publ), has a Quality Score of 73/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Telefonaktiebolaget LM Ericsson (publ), (ERIC-B)?
Telefonaktiebolaget LM Ericsson (publ), reported trailing-twelve-month revenue of about 231B SEK (latest available figure, as of Jul 16, 2026).
What is the net profit margin of ERIC-B?
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.
Does Telefonaktiebolaget LM Ericsson (publ), pay a dividend?
Telefonaktiebolaget LM Ericsson (publ), currently shows a dividend yield of about 2.42% relative to its recent price (as of Jul 16, 2026).

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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