Telefonaktiebolaget LM Ericsson (publ)

HLSE:ERIBR Stock Report

Market Cap: €27.5b

Telefonaktiebolaget LM Ericsson Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

€12.54
Fair Value
34.0% undervalued intrinsic discount
18
Number of Analysts

Below Fair Value: ERIBR (€8.27) is trading below our estimate of fair value (€12.54)

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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ERIBR. This is calculated by dividing ERIBR's market cap by their current earnings.
What is ERIBR's PE Ratio?
PE Ratio12.3x
EarningsSEK 24.64b
Market CapSEK 303.16b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ERIBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average77x
NOKIA Nokia Oyj
34.4x24.80%€29.2b
000063 ZTE
33.6x11.25%CN¥186.3b
UI Ubiquiti
43.6x17.74%US$34.5b
CIEN Ciena
196.5x37.54%US$27.5b
ERIBR Telefonaktiebolaget LM Ericsson
12.3x-12.44%€303.2b

Price-To-Earnings vs Peers: ERIBR is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (77x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ERIBR 12.3xIndustry Avg. 38.7xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ERIBR is good value based on its Price-To-Earnings Ratio (12.3x) compared to the European Communications industry average (38.7x).

Price to Earnings Ratio vs Fair Ratio

What is ERIBR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERIBR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: ERIBR is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

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€8.27
€7.95
-3.87%
16.92%€9.65€5.64n/a18
Nov ’26€8.82
€7.92
-10.29%
16.30%€9.61€5.67n/a18
Oct ’26€7.12
€7.12
+0.087%
18.94%€9.00€5.00n/a17
Sep ’26€6.78
€7.11
+4.84%
18.17%€8.93€5.05n/a17
Aug ’26€6.26
€7.05
+12.72%
18.17%€8.86€5.01n/a17
Jul ’26€7.20
€7.23
+0.51%
18.12%€9.03€5.09n/a17
Jun ’26€7.54
€7.44
-1.38%
17.64%€9.28€5.24n/a18
May ’26€7.45
€7.35
-1.28%
17.64%€9.18€5.18n/a18
Apr ’26€7.30
€7.61
+4.29%
16.76%€9.38€5.24n/a18
Mar ’26€7.97
€7.50
-5.90%
16.57%€9.15€5.11n/a18
Feb ’26€7.29
€7.27
-0.28%
16.57%€8.87€4.96n/a18
Jan ’26€7.85
€7.13
-9.15%
19.32%€8.69€3.91n/a18
Dec ’25€7.80
€6.86
-12.05%
19.33%€8.64€3.89n/a18
Nov ’25€7.86
€6.80
-13.49%
18.99%€8.63€3.88€8.8217
Oct ’25€6.90
€6.16
-10.79%
22.56%€8.68€3.54€7.1217
Sep ’25€6.72
€6.08
-9.45%
22.31%€8.63€3.52€6.7817
Aug ’25€6.40
€5.94
-7.17%
21.88%€8.34€3.40€6.2618
Jul ’25€5.84
€5.66
-3.16%
22.79%€8.62€3.52€7.2018
Jun ’25€5.63
€5.48
-2.65%
21.90%€8.39€3.42€7.5419
May ’25€4.75
€5.50
+15.80%
22.12%€8.39€3.43€7.4519
Apr ’25€5.02
€5.71
+13.83%
21.37%€8.54€3.66€7.3019
Mar ’25€5.05
€5.76
+14.25%
21.84%€8.68€3.72€7.9720
Feb ’25€5.09
€5.72
+12.37%
21.61%€8.72€3.74€7.2920
Jan ’25€5.68
€5.76
+1.42%
23.02%€8.62€3.81€7.8519
Dec ’24€4.56
€5.17
+13.46%
25.06%€8.31€3.67€7.8018
Nov ’24€4.26
€5.17
+21.16%
25.69%€8.05€3.56€7.8619
€7.92
Fair Value
4.5% overvalued intrinsic discount
18
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/26 20:06
End of Day Share Price 2025/11/26 00:00
Earnings2025/09/30
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 51 analysts. 19 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
Richard KramerArete Research Services LLP
John EadeArgus Research Company