ERIC Valuation

Telefonaktiebolaget LM Ericsson

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7.650

+0.12(1.594%)1D

Overview
Forecast
Valuation
Earnings

ERIC Relative Valuation

ERIC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ERIC is overvalued; if below, it's undervalued.

Historical Valuation

Telefonaktiebolaget LM Ericsson (ERIC) is now in the Fair zone, suggesting that its current forward PE ratio of 15.54 is considered Fairly compared with the five-year average of 13.20. The fair price of Telefonaktiebolaget LM Ericsson (ERIC) is between 6.21 to 9.69 according to relative valuation methord.

Relative Value

Fair Zone

6.21-9.69

Current Price：7.53

Fair

Trailing

Forward

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

2.77

P/B

Median3y

2.16

Median5y

2.72

15.77

FCF Yield

Median3y

10.42

Median5y

9.39

Competitors Valuation Multiple

The average P/S ratio for ERIC's competitors is 2.23, providing a benchmark for relative valuation. Telefonaktiebolaget LM Ericsson Corp (ERIC) exhibits a P/S ratio of 1.03, which is -53.89% above the industry average. Given its robust revenue growth of 3.74%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ERIC.O

Telefonaktiebolaget LM Ericsson

1.03

Average P/S: 2.23

3.74%