Telefonaktiebolaget LM Ericsson Class A

Telefonaktiebolaget LM Ericsson Class A

10.34
USD
-0.12
(-1.20%)
0.76EPS
14.65P/E
37.10BMarket Cap
Jan 22Next Earn

Total Valuation

USD

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B carries a market capitalization of 37.10B, placing it among publicly traded companies globally. Its enterprise value stands at 35.50B, reflecting the total theoretical takeover cost after accounting for cash holdings and debt obligations.

Market Cap37.10B
Enterprise Value35.50B

Important Dates

Telefonaktiebolaget LM Ericsson Sponsored ADR 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 Sponsored ADR Class B has 3.34B shares outstanding.

Shares Outstanding3.34B

Valuation Ratios

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B trades at a trailing price-to-earnings ratio of 14.65. The price-to-sales ratio is 1.59, and the price-to-book ratio stands at 3.46.

PE Ratio14.65
PS Ratio1.59
PB Ratio3.46
P/TBV Ratio7.87
P/FCF Ratio11.61
P/OCF Ratio10.69

Enterprise Valuation

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B trades at an EV/EBITDA multiple of 10.16 - 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 1.51 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 13.27 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. Telefonaktiebolaget LM Ericsson Sponsored ADR Class B trades at an EV/FCF ratio of 10.46, 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 35.50B versus a market cap of 37.10B, with the gap driven by net debt and cash on the balance sheet.

EV / Sales1.51
EV / EBITDA10.16
EV / EBIT13.27
EV / FCF10.46

Financial Position

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR 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

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Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR 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 260,264.49 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 Sponsored ADR 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 Employee260,264.49
Employee Count90,178.50
Inventory Turnover4.18

Taxes

USD

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B recorded 843.31M 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 3.40B, leaving 2.54B in net income after tax - the gap is what shifts in the tax rate do to reported earnings and EPS.

Income Tax843.31M
Effective Tax Rate24.77

Stock Price Statistics

USD

As of the close on October 22, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B's stock has gained approximately 9.95% over the past 52 weeks. The 50-day moving average sits at 9.93, while the 200-day moving average is 10.88.

52-Week Price Change9.95%
50-Day Moving Average9.93
200-Day Moving Average10.88

Income Statement

USD

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B generated 23.47B in revenue and converted that into 2.54B in net income, yielding earnings per share of 0.76. EBITDA reached 3.50B, while operating income came in at 2.68B.

Revenue23.47B
Gross Profit11.03B
Operating Income2.68B
Pretax Income3.40B
Net Income2.54B
EBITDA3.50B
EBIT2.67B
Earnings Per Share (EPS)0.76

Balance Sheet

USD

As of June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B holds 5.75B in cash and equivalents against 4.07B in total debt, resulting in a net debt position of -1.06B. Total book value stands at 10.73B, with working capital of 1.63B providing operational flexibility.

Cash & Cash Equivalents5.75B
Total Debt4.07B
Net Debt-1.06B
Equity (Book Value)10.73B
Book Value Per Share3.21
Working Capital1.63B

Cash Flow

USD

Telefonaktiebolaget LM Ericsson Sponsored ADR Class B produced 3.48B in operating cash flow over the twelve months ended June 30, 2026. After subtracting -267.87M in capital expenditures, free cash flow totaled 3.22B - equivalent to 0.96 per share.

Operating Cash Flow3.48B
Capital Expenditures-267.87M
Free Cash Flow3.22B
FCF Per Share0.96

Margins

Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR 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

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Over the twelve months ended June 30, 2026, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B paid dividends of 0.30 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 8.61, 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 5.98, combining dividends paid with share buybacks and debt reduction for a fuller picture of capital returned to Telefonaktiebolaget LM Ericsson Sponsored ADR Class B shareholders.

Dividend Per Share0.30
Payout Ratio39.05
Shareholder Yield5.98
FCF Yield8.61

Stock Splits

Telefonaktiebolaget LM Ericsson Sponsored ADR Class B's most recent stock split took place on June 10, 2008 with a 1:2 split ratio.

Last Split Date6/10/2008
Split Ratio1:2