Telefonaktiebolaget LM Ericsson
STO:ERIC B
Intrinsic Value
Telefonaktiebolaget LM Ericsson engages in the provision of telecommunications equipment and related services to mobile and fixed network operators. [ Read More ]
The intrinsic value of one
ERIC B
stock under the Base Case scenario is
99.41
SEK.
Compared to the current market price of 57.4 SEK,
Telefonaktiebolaget LM Ericsson
is
Undervalued by 42%.
ERIC B could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Telefonaktiebolaget LM Ericsson's market capitalization is 191.3B SEK.
ERIC B stock price is 57.4 SEK.
ERIC B stock price (57.4 SEK) is 42% less than its Intrinsic Value (99.41 SEK).
ERIC B stock price (57.4 SEK) is 44% less than its Relative Value (103.09 SEK). Open Relative Valuation
ERIC B has upside potential of 10% compared to the average analyst price target.
Open Wall St Estimates
ERIC B has positive three-year average ROE (Return on Equity): 10%. The company is efficient at transforming stockholders' equity into net income.
ERIC B has positive three-year average ROIC (Return on Invested Capital): 10%. The company is efficient at using invested capital to generate operating income.
ERIC B has positive Operating Income for the last twelve months.
ERIC B's Revenue is forecast to grow at a rate of 2% per year over the next 3 years.
ERIC B's ROIC (Return on Invested Capital) has decreased in the last 3 years from 10% to 8%.
ERIC B's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 8%.
ERIC B's Revenue has been growing by 3% per year for the last 3 years.
ERIC B's short-term assets (151B SEK) exceed its short-term liabilties (124B SEK).
ERIC B's Revenue has dropped by 9% over the past 12 months.
ERIC B has negative Net Income for the last twelve months.
ERIC B has negative Net Debt. This means that the company has more cash and short-term investments (41B SEK) than debt (38B SEK).
ERIC B has positive Free Cash Flow for the last twelve months.
ERIC B's long-term assets (300B SEK) exceed its long-term liabilties (190B SEK).
ERIC B's ROE (Return on Equity) has significantly decreased in the last 3 years from 22% to -21%.
ERIC B has positive Gross Profit for the last twelve months.
ERIC B's ROE (Return on Equity) for the past 12 months is negative and is equal to -21%.
ERIC B's Altman Z-Score is very low and is equal to 1.6.
ERIC B's D/E (Debt to Equity) is very low and is equal to 0.35.
ERIC B generates enough operating income (18B SEK) to cover interest payments on its debt (3B SEK).
Valuation Backtest
Telefonaktiebolaget LM Ericsson
Run backtest to discover the historical profit from buying and selling
ERIC B
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Telefonaktiebolaget LM Ericsson
Balance Sheet Decomposition
Telefonaktiebolaget LM Ericsson
| Current Assets | 151.2B |
| Cash & Short-Term Investments | 40.8B |
| Receivables | 75.8B |
| Other Current Assets | 34.6B |
| Non-Current Assets | 148.3B |
| Long-Term Investments | 20.9B |
| PP&E | 18.3B |
| Intangibles | 84.4B |
| Other Non-Current Assets | 24.7B |
| Current Liabilities | 124.3B |
| Accounts Payable | 25.3B |
| Other Current Liabilities | 99B |
| Non-Current Liabilities | 66.1B |
| Long-Term Debt | 38B |
| Other Non-Current Liabilities | 28.1B |
Earnings Waterfall
Telefonaktiebolaget LM Ericsson
|
Revenue
|
254.1B
SEK
|
|
Cost of Revenue
|
-151.9B
SEK
|
|
Gross Profit
|
102.3B
SEK
|
|
Operating Expenses
|
-84.2B
SEK
|
|
Operating Income
|
18.1B
SEK
|
|
Other Expenses
|
-43.5B
SEK
|
|
Net Income
|
-25.4B
SEK
|
Free Cash Flow Analysis
Telefonaktiebolaget LM Ericsson
ERIC B Profitability Score
Profitability Due Diligence
Telefonaktiebolaget LM Ericsson's profitability score is 48/100. The higher the profitability score, the more profitable the company is.
Score
Telefonaktiebolaget LM Ericsson's profitability score is 48/100. The higher the profitability score, the more profitable the company is.
ERIC B Solvency Score
Solvency Due Diligence
Telefonaktiebolaget LM Ericsson's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Score
Telefonaktiebolaget LM Ericsson's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ERIC B Price Targets Summary
Telefonaktiebolaget LM Ericsson
According to Wall Street analysts, the average 1-year price target for
ERIC B
is 63.33 SEK
.
Shareholder Return
ERIC B Price
Telefonaktiebolaget LM Ericsson
| Average Annual Return | -6.04% |
| Standard Deviation of Annual Returns | 23.79% |
| Max Drawdown | -57% |
| Market Capitalization | 191.3B SEK |
| Shares Outstanding | 3 331 607 200 |
| Percentage of Shares Shorted |
N/A
|
ERIC B News
Last Important Events
Telefonaktiebolaget LM Ericsson
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
Telefonaktiebolaget LM Ericsson
Company Profile
Telefonaktiebolaget LM Ericsson
Country
Industry
Market Cap
Dividend Yield
Description
Telefonaktiebolaget LM Ericsson engages in the provision of telecommunications equipment and related services to mobile and fixed network operators. The company is headquartered in Stockholm, Stockholm and currently employs 101,067 full-time employees. The company went IPO on 2008-01-01. The firm's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. The company develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.
Contact
IPO
Employees
Officers
The intrinsic value of one
ERIC B
stock under the Base Case scenario is
99.41
SEK.
Compared to the current market price of 57.4 SEK,
Telefonaktiebolaget LM Ericsson
is
Undervalued by 42%.
You don't have any saved screeners yet
