(ERIC) Telefonaktiebolaget LM - Ratings and Ratios

Exchange: NASDAQ • Country: Sweden • Currency: USD • Type: Common Stock • ISIN: US2948216088

ERIC: Network Infrastructure, Radio Access, Cloud Software, IoT Connectivity

Telefonaktiebolaget LM Ericsson (publ) is a global leader in mobile connectivity solutions, serving communications service providers, enterprises, and public sector entities. The company operates through four main segments: Networks, Cloud Software and Services, Enterprise, and Other. The Networks segment delivers hardware and software solutions for radio access networks (RAN), including antennas, radios, baseband units, RAN software, and transport solutions. It also provides customer support and deployment services. The Cloud Software and Services segment offers core networks, business support systems, network management solutions, and managed services. The Enterprise segment focuses on IoT, private cellular networks, and wireless connectivity solutions. The Other segment includes RedBee Media, which specializes in video services for broadcasters and sports leagues. With operations spanning North America, Europe, Latin America, the Middle East, Africa, Asia, and Oceania, Ericsson is a key player in the global communications equipment industry. Founded in 1876 and headquartered in Stockholm, Sweden, the company has a long history of innovation in telecommunications.

From a technical perspective, ERIC is currently trading at $8.15 with a 20-day average volume of 28,507,729 shares. The stock is above its SMA 20 ($7.64) and SMA 50 ($7.84), indicating short-term bullish momentum. However, the SMA 200 ($7.57) remains below the current price, suggesting longer-term strength. The ATR of $0.27 reflects moderate volatility. On the fundamental side, Ericsson’s market cap stands at $26.6 billion, with a trailing P/E of 163.40 and a forward P/E of 15.87. The P/B ratio of 3.13 indicates a premium valuation relative to book value, while the P/S ratio of 0.11 suggests undervaluation relative to revenue. The RoE of 1.87% highlights modest profitability.

<3_month_forecast> Bullish 7.50 8.80 Technical indicators such as SMA 20 and SMA 50 crossing above the current price, coupled with strong fundamentals like improving P/E forward and market cap growth. Bearish 7.00 9.00 Expected profit-taking after initial rally, with ATR suggesting increased volatility and potential pullback to test SMA 50 support. Bullish 7.20 9.50 Anticipated rebound driven by fundamental strength, including revenue growth and further 5G deployment contracts, supporting higher price levels.

Additional Sources for ERIC Stock

ERIC Stock Overview

Market Cap in USD 26,597m
Sector Technology
Industry Communication Equipment
GiC Sub-Industry Communications Equipment
IPO / Inception 1989-09-28

ERIC Stock Ratings

Growth Rating 3.34
Fundamental 27.2
Dividend Rating 57.8
Rel. Strength 32.1
Analysts 3.67/5
Fair Price Momentum 8.30 USD
Fair Price DCF 300.70 USD

ERIC Dividends

Dividend Yield 12m 3.34%
Yield on Cost 5y 3.74%
Annual Growth 5y 10.17%
Payout Consistency 73.8%

ERIC Growth Ratios

Growth Correlation 3m 28.2%
Growth Correlation 12m 78.1%
Growth Correlation 5y -57.3%
CAGR 5y 3.21%
CAGR/Max DD 5y 0.05
Sharpe Ratio 12m 1.43
Alpha 52.60
Beta 0.749
Volatility 34.72%
Current Volume 24266.5k
Average Volume 20d 30116k
What is the price of ERIC stocks?
As of April 26, 2025, the stock is trading at USD 8.19 with a total of 24,266,477 shares traded.
Over the past week, the price has changed by +0.49%, over one month by +1.01%, over three months by +7.68% and over the past year by +61.71%.
Is Telefonaktiebolaget LM a good stock to buy?
Neither. Based on ValueRay Fundamental Analyses, Telefonaktiebolaget LM is currently (April 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 27.21 and therefor a neutral outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of ERIC as of April 2025 is 8.30. This means that ERIC is currently overvalued and has a potential downside of 1.34%.
Is ERIC a buy, sell or hold?
Telefonaktiebolaget LM has received a consensus analysts rating of 3.67. Therefor, it is recommend to hold ERIC.
  • Strong Buy: 1
  • Buy: 5
  • Hold: 2
  • Sell: 1
  • Strong Sell: 0
What are the forecast for ERIC stock price target?
According to ValueRays Forecast Model, ERIC Telefonaktiebolaget LM will be worth about 9.2 in April 2026. The stock is currently trading at 8.19. This means that the stock has a potential upside of +11.72%.
Issuer Forecast Upside
Wallstreet Target Price 8 -2.1%
Analysts Target Price 14.8 80.2%
ValueRay Target Price 9.2 11.7%