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What is Telefonaktiebolaget L M Ericsson Debt-to-Equity?
Telefonaktiebolaget L M EricssonERIXF +0.13%65 Debt-to-Equity is 0.38 as of Jun. 2026, which is 7% below its 10-year median of 0.41. GuruFocus rates ERIXF with a GF Score™ of 65/100 and a GF Value™ of $7.38 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,215 Hardware companies, Telefonaktiebolaget L M Ericsson ranks worse than 59.46% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Debt-to-Equity or its related term are showing as below:
ERIXF'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.2 Med: 0.41 Max: 0.64
Current: 0.38
During the past 13 years, the highest Debt-to-Equity Ratio of Telefonaktiebolaget L M Ericsson was 0.64. The lowest was 0.20. And the median was 0.41.
ERIXF's Debt-to-Equity is ranked worse than 59.46% of 2215
companies
in the Hardware industry
Industry Median: 0.27
vs ERIXF: 0.38
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Telefonaktiebolaget L M Ericsson Debt-to-Equity Related Terms
Telefonaktiebolaget L M Ericsson Debt-to-Equity 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-Equity Chart
ERIXF vs CSCO, CIEN, MSI: Debt-to-Equity Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Debt-to-Equity 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.
Telefonaktiebolaget L M Ericsson (ERIXF) has a Debt-to-Equity of 0.38 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. This is near median its historical median of 0.41. Over the past decade, Telefonaktiebolaget L M Ericsson's Debt-to-Equity has ranged from 0.20 to 0.64. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1317 out of 2215 companies in the Hardware industry, placing it in the top 59.5%.
Is Telefonaktiebolaget L M Ericsson's Debt-to-Equity too high?
Telefonaktiebolaget L M Ericsson's current Debt-to-Equity of 0.38 is near median its 10-year median of 0.41. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 0.64. The Hardware industry median Debt-to-Equity is 0.27. Telefonaktiebolaget L M Ericsson's value of 0.38 is 40.7% above this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #1317 out of 2215 companies in the Hardware industry, which is below the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Debt-to-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1317 out of 2215 companies for Debt-to-Equity. This places Telefonaktiebolaget L M Ericsson in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Telefonaktiebolaget L M Ericsson's value of 0.38 is 40.7% above this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own Debt-to-Equity has ranged from 0.20 to 0.64 over the past decade. While the company's 10-year median is 0.41 vs. the industry median of 0.27, Telefonaktiebolaget L M Ericsson has consistently been above 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-Equity for a Hardware company?
The median Debt-to-Equity among Hardware companies is 0.27, based on 2,215 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity 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-Equity of 0.38 is 40.7% above 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median Debt-to-Equity is 0.27 — 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-Equity is 0.38, which is near median its own 10-year median of 0.41. 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 $7.38, compared to a current price of $9.91 — trading 34.3% above its estimated fair value. The current Debt-to-Equity is 0.38, which is near median its 10-year median of 0.41 and 40.7% above the Hardware industry median of 0.27. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 65/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Debt-to-Equity is 0.38 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 $9.91 is trading 34.3% above its estimated GF Value™ of $7.38.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
Debt-to-Equity: 0.38 (near median its 10-year median of 0.41)
GF Value™: $7.38 vs. price of $9.91 (34.3% above fair value)
Industry Position: 40.7% above the Hardware median (#1317 of 2215)
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.
65GF Score
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