GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (NAS:ERIC) » Definitions » Enterprise Value

Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Enterprise Value : $17,690 Mil (As of Apr. 26, 2024)


View and export this data going back to 1989. Start your Free Trial

What is Telefonaktiebolaget L M Ericsson Enterprise Value?

Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Telefonaktiebolaget L M Ericsson's Enterprise Value is $17,690 Mil. Telefonaktiebolaget L M Ericsson's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was $-1,586 Mil. Therefore, Telefonaktiebolaget L M Ericsson's EV-to-EBIT ratio for today is -11.15.

EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Telefonaktiebolaget L M Ericsson's Enterprise Value is $17,690 Mil. Telefonaktiebolaget L M Ericsson's EBITDA for the trailing twelve months (TTM) ended in Mar. 2024 was $2,075 Mil. Therefore, Telefonaktiebolaget L M Ericsson's EV-to-EBITDA ratio for today is 8.53.

EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Telefonaktiebolaget L M Ericsson's Enterprise Value is $17,690 Mil. Telefonaktiebolaget L M Ericsson's Revenue for the trailing twelve months (TTM) ended in Mar. 2024 was $23,930 Mil. Therefore, Telefonaktiebolaget L M Ericsson's EV-to-Revenue ratio for today is 0.74.


Telefonaktiebolaget L M Ericsson Enterprise Value Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Enterprise Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Telefonaktiebolaget L M Ericsson Enterprise Value Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Enterprise Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28,417.33 38,050.86 32,871.41 18,357.63 21,244.95

Telefonaktiebolaget L M Ericsson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Enterprise Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18,529.78 18,442.77 16,014.92 21,244.95 18,617.53

Competitive Comparison of Telefonaktiebolaget L M Ericsson's Enterprise Value

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Telefonaktiebolaget L M Ericsson's Enterprise Value Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Enterprise Value distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Enterprise Value falls into.



Telefonaktiebolaget L M Ericsson Enterprise Value Calculation

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

Telefonaktiebolaget L M Ericsson's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as

Telefonaktiebolaget L M Ericsson's Enterprise Value for the quarter that ended in Mar. 2024 is calculated as

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Telefonaktiebolaget L M Ericsson  (NAS:ERIC) Enterprise Value Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.

Telefonaktiebolaget L M Ericsson's EV-to-EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=17689.943/-1585.88
=-11.15

Telefonaktiebolaget L M Ericsson's current Enterprise Value is $17,690 Mil.
Telefonaktiebolaget L M Ericsson's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1,586 Mil.

2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.

Telefonaktiebolaget L M Ericsson's EV-to-EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=17689.943/2074.756
=8.53

Telefonaktiebolaget L M Ericsson's current Enterprise Value is $17,690 Mil.
Telefonaktiebolaget L M Ericsson's EBITDA for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,075 Mil.

3. EV-to-Revenue is calculated as Enterprise Value divided by its Revenue.

Telefonaktiebolaget L M Ericsson's EV-to-Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=17689.943/23929.925
=0.74

Telefonaktiebolaget L M Ericsson's current Enterprise Value is $17,690 Mil.
Telefonaktiebolaget L M Ericsson's Revenue for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $23,930 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Telefonaktiebolaget L M Ericsson Enterprise Value Related Terms

Thank you for viewing the detailed overview of Telefonaktiebolaget L M Ericsson's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Business Description

Address
Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83
Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.