Telefonaktiebolaget LM Ericsson (publ)

OM:ERIC B Stock Report

Market Cap: SEK 279.5b

Telefonaktiebolaget LM Ericsson Valuation

Is ERIC B 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 ERIC B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
SEK 165.79
Fair Value
49.4% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: ERIC B (SEK83.86) is trading below our estimate of fair value (SEK165.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ERIC B. This is calculated by dividing ERIC B's market cap by their current revenue.
What is ERIC B's PS Ratio?
PS Ratio1.1x
SalesSEK 247.88b
Market CapSEK 279.49b

Price to Sales Ratio vs Peers

How does ERIC B's PS Ratio compare to its peers?

The above table shows the PS ratio for ERIC B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.8x
HMS HMS Networks
8.4x15.5%SEK 25.8b
HEXA B Hexagon
5.6x6.8%SEK 347.9b
NETI B Net Insight
3.9x11.3%SEK 2.5b
LUMEN LumenRadio
5.4xn/aSEK 1.3b
ERIC B Telefonaktiebolaget LM Ericsson
1.1x1.8%SEK 279.5b

Price-To-Sales vs Peers: ERIC B is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (5.8x).

Price to Sales Ratio vs Industry

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

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

Price-To-Sales vs Industry: ERIC B is expensive based on its Price-To-Sales Ratio (1.1x) compared to the European Communications industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is ERIC B'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.

ERIC B PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: ERIC B is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 ERIC B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 83.86
SEK 84.21
+0.4%
17.0%SEK 102.00SEK 57.00n/a19
Jan ’26SEK 89.88
SEK 82.06
-8.7%
19.3%SEK 100.00SEK 45.00n/a18
Dec ’25SEK 88.68
SEK 79.36
-10.5%
19.3%SEK 100.00SEK 45.00n/a18
Nov ’25SEK 89.50
SEK 78.79
-12.0%
19.0%SEK 100.00SEK 45.00n/a17
Oct ’25SEK 75.64
SEK 69.50
-8.1%
22.6%SEK 98.00SEK 40.00n/a17
Sep ’25SEK 76.52
SEK 69.09
-9.7%
22.3%SEK 98.00SEK 40.00n/a17
Aug ’25SEK 73.32
SEK 69.81
-4.8%
21.9%SEK 98.00SEK 40.00n/a18
Jul ’25SEK 67.10
SEK 64.33
-4.1%
22.8%SEK 98.00SEK 40.00n/a18
Jun ’25SEK 64.58
SEK 64.00
-0.9%
21.9%SEK 98.00SEK 40.00n/a19
May ’25SEK 56.22
SEK 64.26
+14.3%
22.1%SEK 98.00SEK 40.00n/a19
Apr ’25SEK 57.64
SEK 65.53
+13.7%
21.4%SEK 98.00SEK 42.00n/a19
Mar ’25SEK 56.32
SEK 65.05
+15.5%
21.8%SEK 98.00SEK 42.00n/a20
Feb ’25SEK 56.97
SEK 64.30
+12.9%
21.6%SEK 98.00SEK 42.00SEK 83.8620
Jan ’25SEK 63.11
SEK 63.47
+0.6%
23.0%SEK 95.00SEK 42.00SEK 89.8819
Dec ’24SEK 51.91
SEK 59.11
+13.9%
25.1%SEK 95.00SEK 42.00SEK 88.6818
Nov ’24SEK 50.03
SEK 60.95
+21.8%
25.7%SEK 95.00SEK 42.00SEK 89.5019
Oct ’24SEK 53.33
SEK 64.35
+20.7%
22.3%SEK 95.00SEK 45.00SEK 75.6420
Sep ’24SEK 56.77
SEK 64.14
+13.0%
21.9%SEK 95.00SEK 45.00SEK 76.5221
Aug ’24SEK 53.35
SEK 64.00
+20.0%
21.9%SEK 95.00SEK 45.00SEK 73.3221
Jul ’24SEK 58.41
SEK 67.50
+15.6%
21.2%SEK 106.00SEK 48.00SEK 67.1022
Jun ’24SEK 56.45
SEK 67.86
+20.2%
21.4%SEK 106.00SEK 48.00SEK 64.5821
May ’24SEK 56.37
SEK 67.18
+19.2%
22.3%SEK 106.00SEK 46.89SEK 56.2222
Apr ’24SEK 60.60
SEK 70.69
+16.7%
20.9%SEK 106.00SEK 46.89SEK 57.6423
Mar ’24SEK 57.56
SEK 69.04
+19.9%
19.3%SEK 100.00SEK 46.89SEK 56.3222
Feb ’24SEK 60.74
SEK 69.04
+13.7%
19.3%SEK 100.00SEK 46.89SEK 56.9722
Analyst Price Target
Consensus Narrative from 19 Analysts
SEK 84.21
Fair Value
0.4% 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 Analysis2025/01/31 10:15
End of Day Share Price 2025/01/31 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 here.

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 .

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