Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
What is Telefonaktiebolaget L M Ericsson Debt-to-EBITDA?
Telefonaktiebolaget L M EricssonERIXF -2.23%61 Debt-to-EBITDA is 1.17 as of Jun. 2026, which is 5% above its 10-year median of 1.11. GuruFocus rates ERIXF with a GF Score™ of 61/100 and a GF Value™ of $7.32 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,795 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 65.07% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA or its related term are showing as below:
ERIXF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.11 Med: 1.11 Max: 4.61
Current: 0.89
During the past 13 years, the highest Debt-to-EBITDA Ratio of Telefonaktiebolaget L M Ericsson was 4.61. The lowest was -6.11. And the median was 1.11.
ERIXF's Debt-to-EBITDA is ranked better than 65.07% of 1795
companies
in the Hardware industry
Industry Median: 1.73
vs ERIXF: 0.89
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Telefonaktiebolaget L M Ericsson Debt-to-EBITDA Related Terms
Telefonaktiebolaget L M Ericsson Debt-to-EBITDA Historical Data
* 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 Debt-to-EBITDA Chart
ERIXF vs CSCO, CIEN, MSI: Debt-to-EBITDA Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Telefonaktiebolaget L M Ericsson (ERIXF) has a Debt-to-EBITDA of 1.17 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Telefonaktiebolaget L M Ericsson. This is near median its historical median of 1.11. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #627 out of 1795 companies in the Hardware industry, placing it in the top 34.9%.
Is Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA too high?
Telefonaktiebolaget L M Ericsson's current Debt-to-EBITDA of 1.17 is near median its 10-year median of 1.11. The Hardware industry median Debt-to-EBITDA is 1.73. Telefonaktiebolaget L M Ericsson's value of 1.17 is 32.4% below this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #627 out of 1795 companies in the Hardware industry, which is above the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Debt-to-EBITDA compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #627 out of 1795 companies for Debt-to-EBITDA. This puts Telefonaktiebolaget L M Ericsson in the upper half of its industry. The industry median Debt-to-EBITDA is 1.73. Telefonaktiebolaget L M Ericsson's value of 1.17 is 32.4% below this benchmark. While the company's 10-year median is 1.11 vs. the industry median of 1.73, Telefonaktiebolaget L M Ericsson has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.73, based on 1,795 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current Debt-to-EBITDA of 1.17 is 32.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Telefonaktiebolaget L M Ericsson. For the Hardware industry, the median Debt-to-EBITDA is 1.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current Debt-to-EBITDA is 1.17, which is near median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonaktiebolaget L M Ericsson stock overvalued right now?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson (ERIXF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.32, compared to a current price of $10.95 — trading 49.6% above its estimated fair value. The current Debt-to-EBITDA is 1.17, which is near median its 10-year median of 1.11 and 32.4% below the Hardware industry median of 1.73. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Debt-to-EBITDA is 1.17 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telefonaktiebolaget L M Ericsson (ERIXF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued.
The current stock price of $10.95 is trading 49.6% above its estimated GF Value™ of $7.32.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
Debt-to-EBITDA: 1.17 (near median its 10-year median of 1.11)
GF Value™: $7.32 vs. price of $10.95 (49.6% above fair value)
Industry Position: 32.4% below the Hardware median (#627 of 1795)
No single metric tells the full story. See the ERIXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonaktiebolaget L M Ericsson Business Description
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
61GF Score
Get the complete analysis for ERIXF
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ERIXF has been successfully added to your 
