Telefonaktiebolaget LM Ericsson B ADR (ERIC) Fair Value & Analysis
Technology · US · Market cap $37.8B · ISIN US2948216088
What is Telefonaktiebolaget LM Ericsson B ADR really worth?
Telefonaktiebolaget LM Ericsson B ADR
ERIC · US
A solid business, trading 49% below our fair value of $19.85.
Strengths
Risks
For context
Fair value as of: Sep 5, 2026
From 23 valuation models · updated today
Fair value updated Sep 5, 2026, revised from $19.89 to $19.85 (−0.2%) since Aug 27, 2026. Share price −1.4% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict.
- The price is below even our cautious bear case ($13.90). The market is more pessimistic than our downside scenario.
- A fairly wide model range ($13.90 to $30.90) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.
How to read this chart
60‑month range $3.98 – $13.74 · fair‑value band $13.90 – $30.90 · the $10.13 price screens below the $19.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 5, 2026.
Analysis
Telefonaktiebolaget LM Ericsson B ADR (ERIC) currently trades at $10.13, while our model-based Fair Value estimate is $19.85, implying the stock looks roughly 49.0% undervalued today. The Quality Score stands at 74/100 (solid quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of $189.63 per share, and 23 of the 23 models we run sit above the $10.13 price. Bear case: the Asset-Based group reads lowest at $24.01, and 0 of the 23 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Telefonaktiebolaget LM Ericsson B ADR generated revenue of $240B at a net margin of 10.9%. Revenue declined 10.3% year over year. It earns a return on equity of 27.0%. Net debt stands at $2.1B. Fundamentals as of Sep 5, 2026
Our scenario range runs from $13.90 (bear case) to $30.90 (bull case); at $10.13, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 46% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −54% fair-value upside, at 96%, ERIC screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.5232 per share, which is 2.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 23 models by family
Widest divergence: Growth Earnings ($189.63) versus Asset-Based ($24.01). Highest evidence: FCF DCF (81).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 68 · Market factors (momentum, volatility) 54
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India.
Full company description
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Telefonaktiebolaget LM Ericsson B ADR reported revenue of 222B SEK in FY2025 versus 245B SEK in FY2021, a compound −2.3%/yr. Reported net income was 26.7B SEK in FY2025, compounding +2.8%/yr from FY2021.
of which total revenue +0.1 % · buybacks/dilution −0.1 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Communication Equipment · 302 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Communication Equipment median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Cisco Systems, Inc CSCO | $112.15 | $61.53 | −45% |
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| Eoptolink Technology Inc 300502 | ¥429.90 | ¥176.99 | −59% |
| Nokia Oyj NOK | $10.21 | $3.78 | −63% |
| Motorola Solutions, Inc MSI | $491.24 | $236.33 | −52% |
| Yangtze Optical Fibre And Cable Joint Stock Limited 601869 | ¥400.03 | ¥201.38 | −50% |
| Suzhou TFC Optical Communication Co 300394 | ¥276.25 | ¥43.67 | −84% |
| Accton Technology Corporation 2345 | 2,270 TWD | 1,135 TWD | −50% |
| Ubiquiti Inc UI | $577.76 | $252.79 | −56% |
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