Telefonaktiebolaget LM Ericsson (publ)

HLSE:ERIBR Stock Report

Market Cap: €24.5b

Telefonaktiebolaget LM Ericsson Valuation

Is ERIBR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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 ERIBR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€14.52
Fair Value
49.4% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: ERIBR (€7.34) is trading below our estimate of fair value (€14.52)

Significantly Below Fair Value: ERIBR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERIBR?

Key metric: As ERIBR is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ERIBR. This is calculated by dividing ERIBR's market cap by their current revenue.
What is ERIBR's PS Ratio?
PS Ratio1.1x
SalesSEK 247.88b
Market CapSEK 277.35b

Price to Sales Ratio vs Peers

How does ERIBR's PS Ratio compare to its peers?

The above table shows the PS ratio for ERIBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.6x
NOKIA Nokia Oyj
1.3x1.5%€25.0b
UI Ubiquiti
11x11.5%US$25.8b
000063 ZTE
1.6x3.0%CN¥193.8b
TLT1V Teleste Oyj
0.4x10.1%€49.3m
ERIBR Telefonaktiebolaget LM Ericsson
1.1x1.8%€277.3b

Price-To-Sales vs Peers: ERIBR is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (3.6x).

Price to Sales Ratio vs Industry

How does ERIBR's PS Ratio compare vs other companies in the European Communications Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
ERIBR 1.1xIndustry Avg. 1.0xNo. of Companies10PS012345+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ERIBR is expensive based on its Price-To-Sales Ratio (1.1x) compared to the European Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is ERIBR'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.

ERIBR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: ERIBR is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ERIBR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.34
€7.34
+0.07%
16.5%€8.87€4.96n/a19
Feb ’26€7.29
€7.34
+0.8%
16.5%€8.87€4.96n/a19
Jan ’26€7.85
€7.13
-9.1%
19.3%€8.69€3.91n/a18
Dec ’25€7.80
€6.86
-12.1%
19.3%€8.64€3.89n/a18
Nov ’25€7.86
€6.80
-13.5%
19.0%€8.63€3.88n/a17
Oct ’25€6.90
€6.16
-10.8%
22.6%€8.68€3.54n/a17
Sep ’25€6.72
€6.08
-9.5%
22.3%€8.63€3.52n/a17
Aug ’25€6.40
€5.94
-7.2%
21.9%€8.34€3.40n/a18
Jul ’25€5.84
€5.66
-3.2%
22.8%€8.62€3.52n/a18
Jun ’25€5.63
€5.48
-2.6%
21.9%€8.39€3.42n/a19
May ’25€4.75
€5.50
+15.8%
22.1%€8.39€3.43n/a19
Apr ’25€5.02
€5.71
+13.8%
21.4%€8.54€3.66n/a19
Mar ’25€5.05
€5.76
+14.3%
21.8%€8.68€3.72n/a20
Feb ’25€5.09
€5.72
+12.4%
21.6%€8.72€3.74€7.2920
Jan ’25€5.68
€5.76
+1.4%
23.0%€8.62€3.81€7.8519
Dec ’24€4.56
€5.17
+13.5%
25.1%€8.31€3.67€7.8018
Nov ’24€4.26
€5.17
+21.2%
25.7%€8.05€3.56€7.8619
Oct ’24€4.63
€5.57
+20.2%
22.3%€8.23€3.90€6.9020
Sep ’24€4.75
€5.40
+13.7%
21.9%€8.00€3.79€6.7221
Aug ’24€4.57
€5.49
+20.2%
21.9%€8.15€3.86€6.4021
Jul ’24€4.94
€5.77
+16.7%
21.2%€9.05€4.10€5.8422
Jun ’24€4.85
€5.96
+23.0%
21.4%€9.32€4.22€5.6321
May ’24€4.98
€5.89
+18.3%
22.3%€9.30€4.11€4.7522
Apr ’24€5.32
€6.25
+17.7%
20.9%€9.38€4.15€5.0223
Mar ’24€5.16
€6.07
+17.8%
19.3%€8.80€4.12€5.0522
Feb ’24€5.35
€6.07
+13.4%
19.3%€8.80€4.12€5.0922
Analyst Price Target
Consensus Narrative from 19 Analysts
€7.44
Fair Value
1.4% undervalued intrinsic discount
19
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 02:50
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Telefonaktiebolaget LM Ericsson (publ) is covered by 70 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Lionel PellicerAlphaValue
Richard KramerArete Research Services LLP