Telefonaktiebolaget LM Ericsson (publ) (ERIC) is a publicly traded company in the Technology — Communication Equipment industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other.
Is Telefonaktiebolaget LM Ericsson (publ) stock overvalued or undervalued in 2026?
Telefonaktiebolaget LM Ericsson (publ) (ERIC) trades at 19.7× earnings (P/E), below the median of the 314 technology companies over $2bn in Kaplio's universe. At the decade median (14.8×) $8 (-25 %); at its sector median (32.0×) $18 (+62 %).
Kaplio overview: Telefonaktiebolaget LM Ericsson (publ)
Market cap $36B · 52 weeks $9 – $14 (19 % below the high) · P/E 19.7× · 2027 expected P/E 16.4× · Dividend 2.6 % · Next earnings January 22, 2027 · expected EPS $0.23 · Closing price, Oct 28 · accounts published Oct 15.
- Valuation: P/E 19.7× (expensive).
- Business: ROIC 14 % (fair).
- Balance sheet: Net debt/EBITDA 0.0× (solid).
- Earnings: 5 of 8 (uneven).
What would it be worth at its usual multiples?
At the decade median (14.8×) $8 (-25 %); at its sector median (32.0×) $18 (+62 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in technology: 4 of 7 pass
- 3y revenue growth −6.8 %, fails.
- FCF / Revenue 12.8 %, fails.
- ROIC 14.0 %, borderline.
- Gross margin 48.1 %, passes.
- SBC / Revenue 0.0 %, passes.
- Net debt / EBITDA 0.0×, passes.
- EV/EBITDA vs own 5y 8.7×, passes.
Against its peers (reference peers) — Telefonaktiebolaget LM Ericsson (publ): P/E 19.7×; EV/EBITDA 8.7×; ROIC 14.0 %; $35.9B. Nokia Oyj (P/E 59.5×; EV/EBITDA 14.6×; ROIC 5.5 %; $49.8B), Ciena Corporation (P/E 81.1×; EV/EBITDA 46.8×; ROIC 11.6 %; $51.5B), Ubiquiti Inc. (P/E 38.0×; EV/EBITDA 29.1×; ROIC 60.7 %; $36.5B).
Expensive or cheap against its last ten years?
P/E at each close: today 19.7× · median 14.8× · minimum 7.0× · maximum 77.3× · cheap below 12.1× · expensive above 22.4×. It has been cheaper than today 71% of the time over its last ten years.
Dividend
tight (only raised recently) · Yield 2.6 % ($0.27 per ADS in 2025) · 5-year growth +11 % a year · Free cash flow coverage 2.9× · With $1,000 invested today you'd collect $26.00 a year ($2.17 a month).
Investor methods verdict
Would Buffett approve Telefonaktiebolaget LM Ericsson (publ) today?
The Buffett Method would not approve Telefonaktiebolaget LM Ericsson (publ) today: it fails its quality rules. Business quality: 49 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve Telefonaktiebolaget LM Ericsson (publ) today?
The Lynch Method would wait for a better price for Telefonaktiebolaget LM Ericsson (publ). Business quality: 91 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 18.10% |
| Return on Invested Capital | 14.01% |
| Return on Assets | 6.40% |
| Gross Margin | 48.01% |
| Operating Margin | 14.44% |
| Net Margin | 8.36% |
Financial Health
| Debt / Equity | 0.41 |
| Current Ratio | 1.16 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.35 |
Price Performance
| 1 month | +18.72% |
| 3 months | +12.79% |
| Year-to-date | +14.66% |
| 1 year | +9.55% |
| 3 years | +153.78% |
| 5 years | +1.79% |
| 10 years | +127.21% |
Dividend History
Paid in the last 12 months: $0.3113 per share in 2 payments.
| Date | Amount |
|---|---|
| 2026-09-29 | $0.1498 |
| 2026-04-02 | $0.1615 |
| 2025-09-29 | $0.1515 |
| 2025-03-27 | $0.1423 |
| 2024-10-02 | $0.1302 |
| 2024-04-04 | $0.1275 |
| 2023-09-28 | $0.1222 |
| 2023-03-30 | $0.1303 |
| 2022-09-29 | $0.1133 |
| 2022-03-30 | $0.1332 |
Amounts adjusted for stock splits.
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Explore sector: Technology · Communication Equipment
More sections of ERIC: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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