Telefonaktiebolaget LM Ericsson
LSE:0O86
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Telefonaktiebolaget LM Ericsson
LSE:0O86
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Sumitomo Pharma Co Ltd
DUS:DPM
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Intrinsic Value
The intrinsic value of 
Telefonaktiebolaget LM Ericsson (0O86) under the Base Case is 76.64 SEK per share.
Compared with the current market price of 104.4 SEK, the stock appears
Overvalued by 27% .
The intrinsic value is calculated using the DCF method.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Telefonaktiebolaget LM Ericsson Does
Ericsson makes the equipment and software that mobile networks need to work. Its main products include radio gear for cell towers, core network software, transport systems, and network management tools that help carriers build and run 4G and 5G networks. It also sells services such as network design, deployment, and ongoing support.
- Headquarters
- Sweden SE
- Employees
- 101 067
- IPO date
- Jan 1, 2008
Telefonaktiebolaget LM Ericsson has no economic moat
Operators can choose competing equipment suppliers, so Ericsson must keep earning contracts through price and performance rather than rely on captive customers. Its established position and patented technology provide strengths, but do not give it exclusive control over the equipment customers need.
Read the full moat analysis
Revenue & Expenses Breakdown
Telefonaktiebolaget LM Ericsson
Earnings Waterfall
Telefonaktiebolaget LM Ericsson
The intrinsic value for Telefonaktiebolaget LM Ericsson (0O86) under the Base Case is 76.64 SEK.
Compared with the current market price of 104.4 SEK, the stock appears Overvalued by 27% .