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ERIXF (Telefonaktiebolaget L M Ericsson) Cyclically Adjusted Price-to-FCF : 14.75 (As of May. 29, 2025)


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What is Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF?

As of today (2025-05-29), Telefonaktiebolaget L M Ericsson's current share price is $9.00. Telefonaktiebolaget L M Ericsson's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $0.61. Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF for today is 14.75.

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

ERIXF' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 10.78   Med: 17.68   Max: 38.06
Current: 14.45

During the past years, Telefonaktiebolaget L M Ericsson's highest Cyclically Adjusted Price-to-FCF was 38.06. The lowest was 10.78. And the median was 17.68.

ERIXF's Cyclically Adjusted Price-to-FCF is ranked better than
74.49% of 988 companies
in the Hardware industry
Industry Median: 27.565 vs ERIXF: 14.45

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Telefonaktiebolaget L M Ericsson's adjusted free cash flow per share data for the three months ended in Mar. 2025 was $0.098. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $0.61 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.96 24.52 12.84 13.99 16.82

Telefonaktiebolaget L M Ericsson Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted Price-to-FCF 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 13.35 14.44 15.14 16.82 13.43

Competitive Comparison of Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Hardware Industry

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

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF falls into.


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Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Telefonaktiebolaget L M Ericsson's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=9.00/0.61
=14.75

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, Telefonaktiebolaget L M Ericsson's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=0.098/132.8245*132.8245
=0.098

Current CPI (Mar. 2025) = 132.8245.

Telefonaktiebolaget L M Ericsson Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 -0.007 99.995 -0.009
201509 -0.045 100.228 -0.060
201512 0.604 100.276 0.800
201603 -0.184 100.751 -0.243
201606 -0.124 101.019 -0.163
201609 -0.163 101.138 -0.214
201612 0.538 102.022 0.700
201703 -0.116 102.022 -0.151
201706 -0.046 102.752 -0.059
201709 -0.033 103.279 -0.042
201712 0.360 103.793 0.461
201803 0.017 103.962 0.022
201806 0.006 104.875 0.008
201809 0.027 105.679 0.034
201812 0.101 105.912 0.127
201903 0.129 105.886 0.162
201906 0.066 106.742 0.082
201909 0.169 107.214 0.209
201912 -0.042 107.766 -0.052
202003 0.090 106.563 0.112
202006 0.126 107.498 0.156
202009 0.141 107.635 0.174
202012 0.454 108.296 0.557
202103 0.073 108.360 0.089
202106 0.167 108.928 0.204
202109 0.468 110.338 0.563
202112 0.469 112.486 0.554
202203 -0.034 114.825 -0.039
202206 0.147 118.384 0.165
202209 0.086 122.296 0.093
202212 0.511 126.365 0.537
202303 -0.211 127.042 -0.221
202306 -0.118 129.407 -0.121
202309 0.003 130.224 0.003
202312 0.387 131.912 0.390
202403 0.123 132.205 0.124
202406 0.236 132.716 0.236
202409 0.398 132.304 0.400
202412 0.450 132.987 0.449
202503 0.098 132.825 0.098

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Telefonaktiebolaget L M Ericsson  (OTCPK:ERIXF) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Telefonaktiebolaget L M Ericsson Cyclically Adjusted Price-to-FCF Related Terms

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


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 operate mobile networks. The firm divides its business into three segments: networks, cloud and software services, and enterprise. Wireless carriers have traditionally been the firm's primary customers, but it is pushing to cater more to enterprises as well, as both try to take advantage of 5G capabilities and utilize "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers.