Telefonaktiebolaget Lm Ericsson Stock Current Valuation

ERIC Stock  USD 5.51  0.08  1.47%   
Valuation analysis of Telefonaktiebolaget helps investors to measure Telefonaktiebolaget's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value Multiple is expected to grow to 9.81. Fundamental drivers impacting Telefonaktiebolaget's valuation include:
Price Book
1.9698
Enterprise Value
18.6 B
Enterprise Value Ebitda
(2.09)
Price Sales
0.0698
Forward PE
11.6686
Fairly Valued
Today
5.51
Please note that Telefonaktiebolaget's price fluctuation is somewhat reliable at this time. Calculation of the real value of Telefonaktiebolaget is based on 3 months time horizon. Increasing Telefonaktiebolaget's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Telefonaktiebolaget LM Ericsson is useful when determining the fair value of the Telefonaktiebolaget stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Telefonaktiebolaget. Since Telefonaktiebolaget is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Telefonaktiebolaget Stock. However, Telefonaktiebolaget's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  5.51 Real  5.62 Target  14.76 Hype  5.51 Naive  5.39
The real value of Telefonaktiebolaget Stock, also known as its intrinsic value, is the underlying worth of Telefonaktiebolaget Company, which is reflected in its stock price. It is based on Telefonaktiebolaget's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Telefonaktiebolaget's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Telefonaktiebolaget's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
5.62
Real Value
7.47
Upside
Estimating the potential upside or downside of Telefonaktiebolaget LM Ericsson helps investors to forecast how Telefonaktiebolaget stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Telefonaktiebolaget more accurately as focusing exclusively on Telefonaktiebolaget's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.060.070.08
Details
Hype
Prediction
LowEstimatedHigh
3.665.517.36
Details
Potential
Annual Dividend
LowForecastedHigh
0.160.170.18
Details
9 Analysts
Consensus
LowTarget PriceHigh
13.4314.7616.38
Details

Telefonaktiebolaget Current Valuation Analysis

Telefonaktiebolaget's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit100.7B113.3B104.4B66.2B
Total Revenue232.3B271.5B263.4B177.7B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Telefonaktiebolaget Current Valuation

    
  18.64 B  
Most of Telefonaktiebolaget's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Telefonaktiebolaget LM Ericsson is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Telefonaktiebolaget Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Telefonaktiebolaget is extremely important. It helps to project a fair market value of Telefonaktiebolaget Stock properly, considering its historical fundamentals such as Current Valuation. Since Telefonaktiebolaget's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Telefonaktiebolaget's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Telefonaktiebolaget's interrelated accounts and indicators.
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0.150.04-0.130.74-0.22-0.19-0.29-0.480.34-0.050.240.320.330.20.610.430.24-0.340.70.60.310.340.190.290.420.340.37-0.780.6
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0.280.03-0.270.46-0.41-0.11-0.32-0.470.65-0.170.320.570.190.120.760.680.57-0.810.690.730.190.62-0.480.460.80.730.42-0.72-0.01
0.560.540.580.220.520.380.20.10.380.460.330.320.190.4-0.020.030.780.170.15-0.01-0.02-0.350.07-0.280.030.00.72-0.40.07
0.930.890.75-0.20.610.880.160.50.770.90.20.790.120.40.30.360.57-0.030.310.330.040.23-0.420.290.330.330.02-0.2-0.01
0.260.04-0.30.59-0.46-0.07-0.42-0.370.65-0.120.610.610.76-0.020.30.860.33-0.890.880.970.530.87-0.40.810.820.750.13-0.750.3
0.310.07-0.180.55-0.340.05-0.25-0.120.61-0.040.430.540.680.030.360.860.38-0.850.880.930.340.72-0.570.70.870.890.16-0.630.29
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0.310.03-0.170.61-0.31-0.08-0.27-0.40.6-0.060.70.550.690.150.310.880.880.47-0.80.940.330.62-0.440.640.830.810.29-0.810.38
0.290.03-0.240.58-0.41-0.04-0.34-0.320.64-0.090.60.590.73-0.010.330.970.930.37-0.890.940.480.81-0.480.810.850.810.15-0.730.3
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0.160.0-0.370.32-0.51-0.09-0.51-0.280.54-0.140.340.550.62-0.350.230.870.720.05-0.770.620.810.5-0.310.810.740.67-0.11-0.430.1
-0.44-0.23-0.170.12-0.08-0.42-0.13-0.25-0.53-0.250.19-0.53-0.480.07-0.42-0.4-0.57-0.420.53-0.44-0.480.12-0.31-0.48-0.53-0.590.050.150.12
0.2-0.05-0.160.21-0.270.11-0.110.00.43-0.040.290.460.46-0.280.290.810.70.12-0.760.640.810.710.81-0.480.490.46-0.1-0.260.15
0.370.15-0.220.47-0.4-0.04-0.49-0.370.75-0.040.420.650.80.030.330.820.870.43-0.780.830.850.080.74-0.530.490.980.14-0.740.05
0.350.13-0.190.43-0.350.0-0.4-0.260.68-0.020.340.60.730.00.330.750.890.4-0.740.810.810.00.67-0.590.460.980.12-0.650.09
0.220.130.20.40.19-0.050.03-0.260.170.050.370.20.420.720.020.130.160.65-0.070.290.150.0-0.110.05-0.10.140.12-0.430.31
-0.27-0.130.22-0.770.360.190.460.6-0.590.11-0.78-0.49-0.72-0.4-0.2-0.75-0.63-0.540.62-0.81-0.73-0.17-0.430.15-0.26-0.74-0.65-0.43-0.36
-0.21-0.18-0.180.58-0.16-0.20.1-0.13-0.18-0.150.6-0.14-0.010.07-0.010.30.29-0.11-0.20.380.30.050.10.120.150.050.090.31-0.36
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Telefonaktiebolaget LM Ericsson has a Current Valuation of 18.64 B. This is 3.49% lower than that of the Communications Equipment sector and 156.41% higher than that of the Information Technology industry. The current valuation for all United States stocks is 12.13% lower than that of the firm.

Telefonaktiebolaget Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Telefonaktiebolaget's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Telefonaktiebolaget could also be used in its relative valuation, which is a method of valuing Telefonaktiebolaget by comparing valuation metrics of similar companies.
Telefonaktiebolaget is currently under evaluation in current valuation category among related companies.

Telefonaktiebolaget Fundamentals

About Telefonaktiebolaget Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Telefonaktiebolaget LM Ericsson's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Telefonaktiebolaget using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Telefonaktiebolaget LM Ericsson based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Telefonaktiebolaget LM Ericsson , together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. Telefonaktiebolaget LM Ericsson was founded in 1876 and is headquartered in Stockholm, Sweden. Ericsson ADR operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 104490 people.

Pair Trading with Telefonaktiebolaget

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Telefonaktiebolaget position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Telefonaktiebolaget will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to Telefonaktiebolaget could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonaktiebolaget when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Telefonaktiebolaget - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Telefonaktiebolaget LM Ericsson to buy it.
The correlation of Telefonaktiebolaget is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Telefonaktiebolaget moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefonaktiebolaget moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Telefonaktiebolaget can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Telefonaktiebolaget offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Telefonaktiebolaget's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Telefonaktiebolaget Lm Ericsson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Telefonaktiebolaget Lm Ericsson Stock:
Check out Telefonaktiebolaget Piotroski F Score and Telefonaktiebolaget Altman Z Score analysis.
You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Telefonaktiebolaget's price analysis, check to measure Telefonaktiebolaget's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Telefonaktiebolaget is operating at the current time. Most of Telefonaktiebolaget's value examination focuses on studying past and present price action to predict the probability of Telefonaktiebolaget's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Telefonaktiebolaget's price. Additionally, you may evaluate how the addition of Telefonaktiebolaget to your portfolios can decrease your overall portfolio volatility.
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Is Telefonaktiebolaget's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Telefonaktiebolaget. If investors know Telefonaktiebolaget will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Telefonaktiebolaget listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.44)
Dividend Share
2.7
Earnings Share
(0.75)
Revenue Per Share
79.084
Quarterly Revenue Growth
(0.16)
The market value of Telefonaktiebolaget is measured differently than its book value, which is the value of Telefonaktiebolaget that is recorded on the company's balance sheet. Investors also form their own opinion of Telefonaktiebolaget's value that differs from its market value or its book value, called intrinsic value, which is Telefonaktiebolaget's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Telefonaktiebolaget's market value can be influenced by many factors that don't directly affect Telefonaktiebolaget's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Telefonaktiebolaget's value and its price as these two are different measures arrived at by different means. Investors typically determine if Telefonaktiebolaget is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Telefonaktiebolaget's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.