Telefonaktiebolaget LM Ericsson
XETRA:ERCG

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Telefonaktiebolaget LM Ericsson
XETRA:ERCG
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Price: 8.34 EUR -0.36%
Market Cap: 27.8B EUR
Section:
 

Relative Value

The Relative Value of one ERCG stock under the Base Case scenario is 9.43 EUR. Compared to the current market price of 8.34 EUR, Telefonaktiebolaget LM Ericsson is Undervalued by 12%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

ERCG Relative Value
Base Case
9.43 EUR
Undervaluation 12%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

1.3
P/S
P/S
Price to Sales
1.3
vs History
23
vs Industry
55
Median 3Y
0.9
Median 5Y
1
Industry
2.3
Forward
1.3
More Details
12.3
P/E
P/E
Price to Earnings
12.3
vs History
47
vs Industry
0
Median 3Y
10.3
Median 5Y
12.1
Industry
26.9
Forward
11.8
More Details
8.9
P/OCF
P/OCF
Price to OCF
8.9
vs History
41
vs Industry
47
Median 3Y
7.7
Median 5Y
7.8
Industry
16.8
More Details
11.6
P/FCFE
P/FCFE
Price to FCFE
11.6
vs History
52
vs Industry
33
Median 3Y
11.6
Median 5Y
11.6
Industry
20.4
More Details
3
P/B
P/B
Price to Book Value
3
vs History
41
vs Industry
33
Median 3Y
2.6
Median 5Y
2.8
Industry
2.6
More Details
1.2
EV/S
EV/S
Enterprise Value to Sales
1.2
vs History
19
vs Industry
55
Median 3Y
0.9
Median 5Y
1
Industry
2.5
Forward
1.2
More Details
2.5
EV/GP
EV/GP
Enterprise Value to Gross Profit
2.5
vs History
33
vs Industry
64
Median 3Y
2.1
Median 5Y
2.2
Industry
7.9
More Details
7.1
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
7.1
vs History
34
vs Industry
42
Median 3Y
6.3
Median 5Y
6.3
Industry
17.8
Forward
6.5
More Details
9.2
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
9.2
vs History
46
vs Industry
36
Median 3Y
9.3
Median 5Y
8.7
Industry
23.7
Forward
8.2
More Details
8.5
EV/OCF
EV/OCF
Enterprise Value to OCF
8.5
vs History
39
vs Industry
46
Median 3Y
7.3
Median 5Y
7.3
Industry
16.3
More Details
9.5
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
9.5
vs History
44
vs Industry
36
Median 3Y
9.3
Median 5Y
8.9
Industry
17.2
More Details
1.4
EV/IC
EV/IC
Enterprise Value to IC
1.4
vs History
23
vs Industry
49
Median 3Y
1.1
Median 5Y
1.2
Industry
2
More Details

Multiples Across Competitors

ERCG Competitors Multiples
Telefonaktiebolaget LM Ericsson Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
SE
Telefonaktiebolaget LM Ericsson
XETRA:ERCG
303.7B EUR 1.3 12.3 7.1 9.2
JP
Nakayo Inc
TSE:6715
111.4T JPY 6 383.2 7 956 708 364 019 -1 113 898.2
US
Cisco Systems Inc
NASDAQ:CSCO
296.5B USD 5.1 28.7 19.3 23.2
US
Arista Networks Inc
NYSE:ANET
166.6B USD 19.7 49.6 42.4 43.2
CN
Zhongji Innolight Co Ltd
SZSE:300308
688.4B CNY 21.8 80.5 68.2 68.2
US
Motorola Solutions Inc
NYSE:MSI
63.5B USD 5.6 30 22.5 25.4
FI
Nokia Oyj
OMXH:NOKIA
31.6B EUR 1.6 34.1 15.3 29.3
US
Ciena Corp
NYSE:CIEN
35.8B USD 7.5 290.6 79.9 116
US
Ubiquiti Inc
NYSE:UI
34.5B USD 12.5 43.5 36.1 36.9
US
Lumentum Holdings Inc
NASDAQ:LITE
28.2B USD 15.3 250.5 203.2 -279.6
CN
ZTE Corp
SZSE:000063
187.8B CNY 1.4 32.2 35.2 35.2
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
SE
Telefonaktiebolaget LM Ericsson
XETRA:ERCG
Average EV/EBITDA: 33 140.8
7.1
5%
1.4
JP
N
Nakayo Inc
TSE:6715
364 019
N/A N/A
US
Cisco Systems Inc
NASDAQ:CSCO
19.3
19%
1
US
Arista Networks Inc
NYSE:ANET
42.4
28%
1.5
CN
Zhongji Innolight Co Ltd
SZSE:300308
68.2
85%
0.8
US
Motorola Solutions Inc
NYSE:MSI
22.5
14%
1.6
FI
Nokia Oyj
OMXH:NOKIA
15.3
N/A N/A
US
Ciena Corp
NYSE:CIEN
79.9
56%
1.4
US
Ubiquiti Inc
NYSE:UI
36.1
7%
5.2
US
Lumentum Holdings Inc
NASDAQ:LITE
203.2
162%
1.3
CN
ZTE Corp
SZSE:000063
35.2
18%
2
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
SE
Telefonaktiebolaget LM Ericsson
XETRA:ERCG
Average EV/EBIT: 43
9.2
9%
1
JP
N
Nakayo Inc
TSE:6715
Negative Multiple: -1 113 898.2 N/A N/A
US
Cisco Systems Inc
NASDAQ:CSCO
23.2
23%
1
US
Arista Networks Inc
NYSE:ANET
43.2
28%
1.5
CN
Zhongji Innolight Co Ltd
SZSE:300308
68.2
88%
0.8
US
Motorola Solutions Inc
NYSE:MSI
25.4
15%
1.7
FI
Nokia Oyj
OMXH:NOKIA
29.3
N/A N/A
US
Ciena Corp
NYSE:CIEN
116
69%
1.7
US
Ubiquiti Inc
NYSE:UI
36.9
7%
5.3
US
Lumentum Holdings Inc
NASDAQ:LITE
Negative Multiple: -279.6 N/A N/A
CN
ZTE Corp
SZSE:000063
35.2
1%
35.2

See Also

Summary
ERCG intrinsic value, competitors valuation, and company profile.
DCF Valuation
ERCG stock valuation using Discount Cash Flow valuation method.
Relative Valuation
ERCG stock valuation using valuation multiples.
Wall Street Estimates
ERCG price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
ERCG stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
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