Ericsson

Telefonaktiebolaget LM Ericsson provides mobile connectivity solutions for telecom operators and enterprise customers globally. The company operates in four segments: Networks, Cloud Software and Services, Enterprise, and Other. The Networks segment offers RAN solutions, cloud RAN, transport solutions, and service portfolios. The Cloud Software and Services segment provides core networks, managed network services, and more. The Enterprise segment offers a global communications platform, enterprise wireless solutions, and technologies. The Other segment includes Redbee media, which prepares and distributes live and video services. The company was founded in 1876 and is headquartered in Stockholm, Sweden.

Overview

Sector

Communication Equipment

Target Price

148.2 SEK

Current Price

7.7 SEK

Potential

102%

Strengths

With an appreciation Potential of 90.88%, based on our fundamental analysis, it suggests the stock may be undervalued.
Price to book ratio (2.74) is lower than the sector mean (13.64).
The company has low debt. Net Debt to EBITDA Ratio is -0.32 and it is lower than the sector mean.
The company has high returns. ROIC (34.96%) is higher than the sector mean (6.61%).
Price to free cash flow (6.07) is lower than the sector mean.

Weaknesses

Current Price to Earnings Ratio (12934.32) is significantly higher than the sector mean (71.24).
EBITDA Margin (7.29%) appears relatively low.

Key Financial Data

Indicator	Value
PER	12247.6
EV/EBITDA	13.2
Price/Free Cash Flow'	5.7
ROIC	35.0%
Net Debt/EBITDA	-0.3