Telefonaktiebolaget LM Ericsson Valuation
Is E1RI34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of E1RI34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: E1RI34 (R$22.92) is trading below our estimate of fair value (R$25.46)
Significantly Below Fair Value: E1RI34 is trading below fair value, but not by a significant amount.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for E1RI34?
Key metric: As E1RI34 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is E1RI34's PS Ratio? | |
|---|---|
| PS Ratio | 1.2x |
| Sales | SEK 246.85b |
| Market Cap | SEK 293.67b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.2x |
| Enterprise Value/EBITDA | -67.6x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does E1RI34's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 3.4x | ||
INTB3 Intelbras - Indústria de Telecomunicação Eletrônica Brasileira | 1.2x | 12.4% | R$5.4b |
NOKIA Nokia Oyj | 1.2x | 0.3% | €22.8b |
UI Ubiquiti | 10.1x | 12.5% | US$20.3b |
000063 ZTE | 1.2x | 3.8% | CN¥143.9b |
E1RI34 Telefonaktiebolaget LM Ericsson | 1.2x | 2.1% | R$293.7b |
Price-To-Sales vs Peers: E1RI34 is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (3.4x).
Price to Sales Ratio vs Industry
How does E1RI34's PS Ratio compare vs other companies in the Global Communications Industry?
| 73 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| 73 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Sales vs Industry: E1RI34 is good value based on its Price-To-Sales Ratio (1.2x) compared to the Global Communications industry average (1.7x).
Price to Sales Ratio vs Fair Ratio
What is E1RI34's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.2x |
| Fair PS Ratio | 1.7x |
Price-To-Sales vs Fair Ratio: E1RI34 is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
Discover undervalued companies
Positivo Tecnologia
R$791.4m
Engages in the development, trading, and industrialization of information technology (IT) solutions in Brazil and internationally.
POSI3
R$5.65
7D
-5.7%
1Y
-16.7%
Multilaser Industrial
R$1.2b
Develops, manufactures, distributes, and sells electronic products in Brazil.
MLAS3
R$1.42
7D
-7.8%
1Y
-35.2%
HP
US$35.4b
Provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services worldwide.
HPQB34
US$215.88
7D
-0.5%
1Y
59.0%