Telefonaktiebolaget L M Ericsson (BUE:ERIC) E10: ARS58.62 (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

BUE:ERIC Telefonaktiebolaget L M Ericsson BUE:ERIC
51 GF Score
Price ARS7,890.00
GF Value ARS5,713.02
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Telefonaktiebolaget L M Ericsson E10?

Telefonaktiebolaget L M Ericsson BUE:ERIC -14.93% 51 E10 is ARS58.62 as of Jun. 2026. GuruFocus rates BUE:ERIC with a GF Score™ of 51/100 and a GF Value™ of ARS5,713.02 (Significantly Overvalued). The stock has 4 warning signs investors should review.

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Telefonaktiebolaget L M Ericsson's adjusted earnings per share data for the three months ended in Jun. 2026 was ARS379.816. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ARS58.62 for the trailing ten years ended in Jun. 2026.

During the past 12 months, Telefonaktiebolaget L M Ericsson's average E10 Growth Rate was -100.00% per year. During the past 3 years, the average E10 Growth Rate was -29.80% per year. During the past 5 years, the average E10 Growth Rate was -19.00% per year. During the past 10 years, the average E10 Growth Rate was -14.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Telefonaktiebolaget L M Ericsson was 67.60% per year. The lowest was -35.70% per year. And the median was -4.40% per year.

As of today (2026-07-15), Telefonaktiebolaget L M Ericsson's current stock price is ARS7890.00. Telefonaktiebolaget L M Ericsson's E10 for the quarter that ended in Jun. 2026 was ARS58.62. Telefonaktiebolaget L M Ericsson's Shiller PE Ratio of today is 134.60.

During the past 13 years, the highest Shiller PE Ratio of Telefonaktiebolaget L M Ericsson was 226.90. The lowest was 11.76. And the median was 69.91.


Telefonaktiebolaget L M Ericsson  (BUE:ERIC) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Telefonaktiebolaget L M Ericsson's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=7890.00/58.62
=134.60

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Telefonaktiebolaget L M Ericsson was 226.90. The lowest was 11.76. And the median was 69.91.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Telefonaktiebolaget L M Ericsson E10 Related Terms


Telefonaktiebolaget L M Ericsson E10 Historical Data

* Premium members only.

The historical data trend for Telefonaktiebolaget L M Ericsson's E10 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.

Telefonaktiebolaget L M Ericsson E10 Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.97 33.81 42.59 22.50 58.93

Telefonaktiebolaget L M Ericsson Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
E10 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 34.72 61.18 58.93 52.13 58.62

BUE:ERIC vs CSCO, CIEN, MSI: E10 Comparison

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Hardware Industry

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

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Shiller PE Ratio falls into.


BUE:ERIC
51GF Score
Telefonaktiebolaget L M Ericsson BUE:ERIC
E10 is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Telefonaktiebolaget L M Ericsson E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Telefonaktiebolaget L M Ericsson's adjusted earnings per share data for the three months ended in Jun. 2026 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=379.816/132.7900*132.7900
=379.816

Current CPI (Jun. 2026) = 132.7900.

Telefonaktiebolaget L M Ericsson Quarterly Data

per share eps CPI Adj_EPS
201609 -0.245 101.138 -0.322
201612 -1.687 102.022 -2.196
201703 -10.653 102.022 -13.866
201706 -0.532 102.752 -0.688
201709 -4.769 103.279 -6.132
201712 -26.165 103.793 -33.475
201803 -1.223 103.962 -1.562
201806 -3.287 104.875 -4.162
201809 6.833 105.679 8.586
201812 -16.618 105.912 -20.835
201903 5.889 105.886 7.385
201906 4.844 106.742 6.026
201909 -21.775 107.214 -26.969
201912 16.857 107.766 20.771
202003 8.197 106.563 10.214
202006 10.882 107.498 13.442
202009 26.995 107.635 33.304
202012 43.983 108.296 53.931
202103 20.245 108.360 24.809
202106 24.820 108.928 30.257
202109 39.139 110.338 47.103
202112 67.107 112.486 79.220
202203 19.756 114.825 22.847
202206 32.376 118.384 36.316
202209 39.736 122.296 43.146
202212 58.802 126.365 61.792
202303 16.971 127.042 17.739
202306 -9.360 129.407 -9.605
202309 -581.524 130.224 -592.985
202312 71.795 131.912 72.273
202403 124.619 132.205 125.170
202406 -570.415 132.716 -570.733
202409 211.862 132.304 212.640
202412 264.797 132.987 264.404
202503 260.912 132.825 260.844
202506 340.694 133.699 338.378
202509 964.969 133.480 959.981
202512 802.782 133.390 799.171
202603 81.039 133.560 80.572
202606 379.816 132.790 379.816

Add all the adjusted EPS together and divide 10 will get our e10.

Frequently Asked Questions Learn more about E10 →
What does a E10 of ARS58.62 mean?
Telefonaktiebolaget L M Ericsson (BUE:ERIC) has a E10 of ARS58.62 as of Jun. 2026. E10 represents the company's inflation-adjusted earnings per share over a 10-year period. View historical data on Telefonaktiebolaget L M Ericsson and its competitors.
Is Telefonaktiebolaget L M Ericsson's E10 too high?
Telefonaktiebolaget L M Ericsson's current E10 is ARS58.62. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's E10 compare to CSCO and CIEN?
Telefonaktiebolaget L M Ericsson's E10 of ARS58.62 can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good E10 for a Hardware company?
A good E10 depends on the Hardware industry context. However, E10 should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high E10 mean?
A high E10 can signal that a stock is expensive relative to its fundamentals. E10 represents the company's inflation-adjusted earnings per share over a 10-year period. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. Telefonaktiebolaget L M Ericsson's current E10 is ARS58.62. 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 (BUE:ERIC) is currently considered Significantly Overvalued. The stock's GF Value™ is ARS5,713.02, compared to a current price of ARS7,890.00 — trading 38.1% above its estimated fair value. The current E10 is ARS58.62. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 51/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is E10 calculated?
E10 is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (BUE:ERIC), the current E10 is ARS58.62 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 (BUE:ERIC) Overvalued in 2026?

Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued. The current stock price of ARS7,890.00 is trading 38.1% above its estimated GF Value™ of ARS5,713.02. GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.

Key valuation signals for BUE:ERIC:

  • E10: ARS58.62
  • GF Value™: ARS5,713.02 vs. price of ARS7,890.00 (38.1% above fair value)
  • GF Score™: 51/100 with 4 warning signs

No single metric tells the full story. See the BUE:ERIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Telefonaktiebolaget L M Ericsson Business Description

Address Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83
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.
51GF Score

Get the complete analysis for BUE:ERIC

E10 is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

ARS7,890.00
Price
ARS5,713.02
GF Value