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Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Price-to-Free-Cash-Flow

: 12.46 (As of Today)
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As of today (2024-04-19), Telefonaktiebolaget L M Ericsson's share price is $4.92. Telefonaktiebolaget L M Ericsson's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $0.40. Hence, Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow Ratio for today is 12.46.

The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow or its related term are showing as below:

ERIXF' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 7.12   Med: 22.02   Max: 124.12
Current: 108.05

During the past 13 years, Telefonaktiebolaget L M Ericsson's highest Price-to-Free-Cash-Flow Ratio was 124.12. The lowest was 7.12. And the median was 22.02.

ERIXF's Price-to-Free-Cash-Flow is ranked worse than
90.23% of 1351 companies
in the Hardware industry
Industry Median: 17.05 vs ERIXF: 108.05

Telefonaktiebolaget L M Ericsson's Free Cash Flow per Share for the three months ended in Mar. 2024 was $0.12. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was $0.40.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Telefonaktiebolaget L M Ericsson was -93.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -58.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -5.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 1.70% per year.

During the past 13 years, Telefonaktiebolaget L M Ericsson's highest 3-Year average Free Cash Flow per Share Growth Rate was 97.10% per year. The lowest was -79.30% per year. And the median was -0.65% per year.


Telefonaktiebolaget L M Ericsson Price-to-Free-Cash-Flow Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Price-to-Free-Cash-Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.52 13.75 9.65 8.23 123.02

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
Price-to-Free-Cash-Flow 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 Premium Member Only Premium Member Only Premium Member Only 10.99 21.15 28.80 123.02 -

Competitive Comparison

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow falls into.



Telefonaktiebolaget L M Ericsson Price-to-Free-Cash-Flow Calculation

Telefonaktiebolaget L M Ericsson's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=4.92/0.395
=12.46

Telefonaktiebolaget L M Ericsson's Share Price of today is $4.92.
Telefonaktiebolaget L M Ericsson's Free Cash Flow per Share 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 $0.40.

* 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.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Telefonaktiebolaget L M Ericsson  (OTCPK:ERIXF) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Telefonaktiebolaget L M Ericsson Price-to-Free-Cash-Flow Related Terms

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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.