Telefonaktiebolaget LM Ericsson Class A

Telefonaktiebolaget LM Ericsson Class A

7.82
CHF
+0.09
(+1.10%)
0.61EPS
16.27P/E
33.33BMarket Cap
Jan 22Next Earn

Total Valuation

CHF

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B carries a market capitalization of 33.33B, placing it among publicly traded companies globally. Its enterprise value stands at 32.03B, reflecting the total theoretical takeover cost after accounting for cash holdings and debt obligations.

Market Cap33.33B
Enterprise Value32.03B

Important Dates

Telefonaktiebolaget LM Ericsson Class B's next confirmed earnings release is scheduled for January 22, 2027.

Earnings Date1/22/2027

Share Statistics

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B has 3.36B shares outstanding.

Shares Outstanding3.36B

Valuation Ratios

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B trades at a trailing price-to-earnings ratio of 16.27. The price-to-sales ratio is 1.76, and the price-to-book ratio stands at 3.84.

PE Ratio16.27
PS Ratio1.76
PB Ratio3.84
P/TBV Ratio8.75
P/FCF Ratio12.89
P/OCF Ratio11.87

Enterprise Valuation

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B trades at an EV/EBITDA multiple of 11.34 - the valuation measure that neutralizes differences in capital structure, tax rates, and depreciation policy, making it the standard yardstick for comparing companies across an industry. The EV/Sales ratio of 1.69 reflects the premium investors pay for the company's revenue stream, a useful check when earnings are depressed or negative. Its EV/EBIT multiple of 14.82 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. Telefonaktiebolaget LM Ericsson Class B trades at an EV/FCF ratio of 11.69, comparing the total takeover cost of the business to the cash it actually generates for all capital providers. These enterprise value multiples are built on an enterprise value of 32.03B versus a market cap of 33.33B, with the gap driven by net debt and cash on the balance sheet.

EV / Sales1.69
EV / EBITDA11.34
EV / EBIT14.82
EV / FCF11.69

Financial Position

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B maintains a current ratio of 1.12, meaning it holds 1.1x the short-term assets needed to cover near-term liabilities. The debt-to-equity ratio is 37.68, indicating elevated leverage, while an interest coverage ratio of 14.99 demonstrates strong ability to service its debt obligations.

Current Ratio1.12
Quick Ratio0.89
Debt / Equity37.68
Debt / EBITDA1.16
Interest Coverage14.99

Financial Efficiency

CHF

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Class B posted a return on equity (ROE) of 25.84, showing how much profit the company earns on every dollar of shareholder capital. Return on invested capital (ROIC) comes in at 13.84 - the clearest signal of whether the business earns more on its capital than that capital costs, and the core measure of a durable competitive advantage. Return on assets (ROA) stands at 8.83, measuring how efficiently the asset base is converted into earnings. Return on capital employed (ROCE) is 19.11, useful for judging operating efficiency across full business cycles. The company generates approximately 210,249.46 in revenue per employee across its workforce of 90,178.50, a quick read on workforce productivity versus industry peers. Inventory turnover of 4.18 indicates how many times Telefonaktiebolaget LM Ericsson Class B sells and replaces its inventory over a year, a key working capital efficiency ratio.

Return on Equity (ROE)25.84
Return on Assets (ROA)8.83
Return on Invested Capital (ROIC)13.84
Return on Capital Employed (ROCE)19.11
Revenue Per Employee210,249.46
Employee Count90,178.50
Inventory Turnover4.18

Taxes

CHF

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Class B recorded 681.25M in income tax expense. That works out to an effective tax rate of 24.77, which can sit above or below the statutory corporate tax rate depending on foreign earnings mix, tax credits, and one-off items. Taxes are levied on pretax income of 2.75B, leaving 2.05B in net income after tax - the gap is what shifts in the tax rate do to reported earnings and EPS.

Income Tax681.25M
Effective Tax Rate24.77

Stock Price Statistics

CHF

As of the close on October 6, 2026, Telefonaktiebolaget LM Ericsson Class B's stock has gained approximately 23.52% over the past 52 weeks.

52-Week Price Change23.52%
50-Day Moving Average6.17

Income Statement

CHF

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Class B generated 18.96B in revenue and converted that into 2.05B in net income, yielding earnings per share of 0.61. EBITDA reached 2.82B, while operating income came in at 2.17B.

Revenue18.96B
Gross Profit8.91B
Operating Income2.17B
Pretax Income2.75B
Net Income2.05B
EBITDA2.82B
EBIT2.16B
Earnings Per Share (EPS)0.61

Balance Sheet

CHF

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Class B holds 4.65B in cash and equivalents against 3.29B in total debt, resulting in a net debt position of -852.65M. Total book value stands at 8.67B, with working capital of 1.32B providing operational flexibility.

Cash & Cash Equivalents4.65B
Total Debt3.29B
Net Debt-852.65M
Equity (Book Value)8.67B
Book Value Per Share2.58
Working Capital1.32B

Cash Flow

CHF

Telefonaktiebolaget LM Ericsson Class B produced 2.81B in operating cash flow over the twelve months ended June 30, 2026. After subtracting -216.39M in capital expenditures, free cash flow totaled 2.60B - equivalent to 0.77 per share.

Operating Cash Flow2.81B
Capital Expenditures-216.39M
Free Cash Flow2.60B
FCF Per Share0.77

Margins

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Class B posted a gross margin of 46.98, reflecting its pricing power and cost economics. The operating margin of 11.42 and net profit margin of 10.83 provide insight into operational efficiency.

Gross Margin46.98
Operating Margin11.42
Pretax Margin14.51
Profit Margin10.83
EBITDA Margin14.89

Dividends & Yields

CHF

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Class B paid dividends of 0.24 per share. The dividend payout ratio of 39.05 indicates the proportion of earnings distributed to shareholders, a key gauge of how sustainable the dividend is and how much room remains for future dividend growth. Free cash flow yield stands at 7.76, showing how much cash the business generates relative to its market value - dividends covered by free cash flow are generally more durable than those funded by debt. Total shareholder yield reaches 5.38, combining dividends paid with share buybacks and debt reduction for a fuller picture of capital returned to Telefonaktiebolaget LM Ericsson Class B shareholders.

Dividend Per Share0.24
Payout Ratio39.05
Shareholder Yield5.38
FCF Yield7.76

Stock Splits

Telefonaktiebolaget LM Ericsson Class B's most recent stock split took place on June 2, 2008 with a 5:1 split ratio.

Last Split Date6/2/2008
Split Ratio5:1