Stock AnalizEricsson LM Telephone Co. ERIC
Radio And Television Broadcasting And Communications Equipment · data as of November 13, 2026
Ericsson LM Telephone Co. (ERIC) is a technology company listed in the US with a market value of about $35.6B. In the twelve months to September 30, 2026 it had revenue of $22.9B and net income of $1.9B, a net margin of 8.4%.
Its overall Stock Analiz score is 2.6 out of 5 (average). The strongest part is financial health (4/5); the weakest is track record (1/5).
Key numbers: a P/E of 18.3, a price to free cash flow of 12.8, 5-year revenue growth of -2% a year, a 5-year average ROIC of 8%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 31% below the current price.
Score: 2.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Revenue growth above 10% last year
- Profit margin improving
- ROE above 15%
- More cash than debt, or low debt to equity
- Positive free cash flow
Checks not passed
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $22.9B | $25.7B | $22.5B | $26.2B | $26.0B | $25.7B | $28.4B | $24.4B | $23.5B | $25.0B | $24.3B |
| Net income | $1.9B | $3.1B | $2M | -$2.6B | $1.8B | $2.5B | $2.1B | $239M | -$729M | -$4.0B | $92M |
| Free cash flow | $2.8B | $3.3B | $4.0B | $386M | $2.5B | $3.9B | $3.0B | $1.3B | $599M | $697M | $870M |
| EPS (diluted) | $0.58 | $0.92 | $0.00 | $-0.78 | $0.53 | $0.74 | $0.63 | $0.07 | $-0.22 | $-1.18 | $0.03 |
| Net margin | 8.4% | 12.0% | 0.0% | -10.0% | 6.9% | 9.8% | 7.5% | 1.0% | -3.1% | -15.9% | 0.4% |
| ROIC | — | 20.4% | 2.6% | -11.0% | 12.5% | 17.8% | 15.4% | 6.9% | 0.8% | -24.1% | 2.5% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is Ericsson LM Telephone’s P/E ratio?
About 18.3, based on the last twelve months of diluted earnings per share (forward P/E about 16.7).
Is Ericsson LM Telephone stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 31% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Ericsson LM Telephone pay a dividend?
Yes. The dividend yield is about 3.02%, and it has paid dividends for 10 years in our data.
Is Ericsson LM Telephone a good stock to buy?
We do not give buy or sell advice. Ericsson LM Telephone scores 2.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.