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ERIC

Telefonaktiebolaget LM Ericsson (publ)

Technology · $30.6B market cap

Verdict

Share price

$9.29

close of Oct 3, 2026

Fair value

$10.38

Sticker Price

Payback Price

$4.15

buy price

Undervalued

ERIC is Undervalued: at $9.29 it trades 10% below its fair value of $10.38. Its buy price (Payback Price) is $4.15, 55% below today's price. Business quality is limited: none of the 5 key numbers clears the 10% bar.

How we valued it

Owner Earnings. Earnings grow slowly (under 7% a year), but cash flow is steady, so we value it on its cash flow instead of its earnings.

Business quality

0 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth3.6% a year✗
Equity per share growth-2.1% a year✗
Sales growth1.4% a year✗
Free cash flow growth1.8% a year✗
Return on invested capital7.5%✗

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About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division…

Communication Equipment

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works