Telefonaktiebolaget LM Ericsson (publ)

BATS-CHIXE:ERICBS Stock Report

Market Cap: SEK 281.8b

Telefonaktiebolaget LM Ericsson Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Discounted Cash Flow
Simply Wall St
SEK 159.02
Fair Value
47.0% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: ERICBS (SEK84.29) is trading below our estimate of fair value (SEK159.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ERICBS. This is calculated by dividing ERICBS's market cap by their current revenue.
What is ERICBS's PS Ratio?
PS Ratio1.1x
SalesSEK 247.88b
Market CapSEK 281.77b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ERICBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.5x
SPT Spirent Communications
2.9x7.3%UK£1.1b
FTC Filtronic
5.5x-1.6%UK£234.3m
HLMA Halma
5.1x5.5%UK£11.0b
SRT SRT Marine Systems
12.3xn/aUK£146.2m
ERICBS Telefonaktiebolaget LM Ericsson
1.1x1.8%SEK 281.8b

Price-To-Sales vs Peers: ERICBS is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (6.5x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies9PS012345+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ERICBS 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 ERICBS'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.

ERICBS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ERICBS's Price-To-Sales Fair Ratio for valuation analysis.

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 ERICBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 84.29
SEK 84.42
+0.2%
16.5%SEK 102.00SEK 57.00n/a19
Feb ’26SEK 85.00
SEK 84.42
-0.7%
16.5%SEK 102.00SEK 57.00n/a19
Jan ’26n/a
SEK 82.06
0%
19.3%SEK 100.00SEK 45.00n/a18
Dec ’25SEK 89.24
SEK 79.36
-11.1%
19.3%SEK 100.00SEK 45.00n/a18
Nov ’25SEK 89.82
SEK 78.79
-12.3%
19.0%SEK 100.00SEK 45.00n/a17
Oct ’25SEK 75.51
SEK 69.50
-8.0%
22.6%SEK 98.00SEK 40.00n/a17
Sep ’25SEK 76.56
SEK 69.09
-9.8%
22.3%SEK 98.00SEK 40.00n/a17
Aug ’25SEK 73.34
SEK 69.81
-4.8%
21.9%SEK 98.00SEK 40.00n/a18
Jul ’25SEK 66.98
SEK 64.33
-4.0%
22.8%SEK 98.00SEK 40.00n/a18
Jun ’25SEK 64.33
SEK 64.00
-0.5%
21.9%SEK 98.00SEK 40.00n/a19
May ’25SEK 56.40
SEK 64.26
+13.9%
22.1%SEK 98.00SEK 40.00n/a19
Apr ’25n/a
SEK 65.53
0%
21.4%SEK 98.00SEK 42.00n/a19
Mar ’25SEK 56.41
SEK 65.05
+15.3%
21.8%SEK 98.00SEK 42.00n/a20
Feb ’25SEK 60.69
SEK 64.30
+6.0%
21.6%SEK 98.00SEK 42.00SEK 85.0020
Jan ’25SEK 63.53
SEK 63.47
-0.09%
23.0%SEK 95.00SEK 42.00n/a19
Dec ’24n/a
SEK 59.11
0%
25.1%SEK 95.00SEK 42.00SEK 89.2418
Nov ’24SEK 48.69
SEK 60.95
+25.2%
25.7%SEK 95.00SEK 42.00SEK 89.8219
Oct ’24SEK 53.26
SEK 64.35
+20.8%
22.3%SEK 95.00SEK 45.00SEK 75.5120
Sep ’24n/a
SEK 64.14
0%
21.9%SEK 95.00SEK 45.00SEK 76.5621
Aug ’24n/a
SEK 64.00
0%
21.9%SEK 95.00SEK 45.00SEK 73.3421
Jul ’24SEK 58.47
SEK 67.50
+15.4%
21.2%SEK 106.00SEK 48.00SEK 66.9822
Jun ’24SEK 56.55
SEK 67.86
+20.0%
21.4%SEK 106.00SEK 48.00SEK 64.3321
May ’24SEK 56.35
SEK 67.18
+19.2%
22.3%SEK 106.00SEK 46.89SEK 56.4022
Apr ’24SEK 60.67
SEK 70.69
+16.5%
20.9%SEK 106.00SEK 46.89n/a23
Mar ’24SEK 58.00
SEK 69.04
+19.0%
19.3%SEK 100.00SEK 46.89SEK 56.4122
Feb ’24SEK 60.40
SEK 69.04
+14.3%
19.3%SEK 100.00SEK 46.89SEK 60.6922
Analyst Price Target
Consensus Narrative from 19 Analysts
SEK 84.15
Fair Value
0.2% overvalued intrinsic discount
19
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 Analysis2025/02/11 09:07
End of Day Share Price 2025/02/11 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 69 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