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What is Telefonaktiebolaget L M Ericsson EV-to-OCF?
Telefonaktiebolaget L M EricssonERIXF -2.00%67 EV-to-OCF is 8.76 as of Aug. 10, 2026, which is 20% below its 10-year median of 10.99. GuruFocus rates ERIXF with a GF Score™ of 67/100 and a GF Value™ of $7.27 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,496 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 50% on this metric.
The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's EV-to-OCF or its related term are showing as below:
ERIXF'
s EV-to-OCF Range Over the Past 10 Years
Min: 4.47 Med: 10.99 Max: 30.15
Current: 8.94
During the past 13 years, the highest EV-to-OCF of Telefonaktiebolaget L M Ericsson was 30.15. The lowest was 4.47. And the median was 10.99.
ERIXF's EV-to-OCF is ranked better than 50% of 2496
companies
in the Hardware industry
Industry Median: 8.95
vs ERIXF: 8.94
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Telefonaktiebolaget L M Ericsson's PE Ratio (TTM) for today is calculated as:
Telefonaktiebolaget L M Ericsson's share price for today is $9.845.
Telefonaktiebolaget L M Ericsson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.789.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Telefonaktiebolaget L M Ericsson EV-to-OCF Related Terms
Telefonaktiebolaget L M Ericsson EV-to-OCF 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.
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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 EV-to-OCF vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's EV-to-OCF falls into.
Telefonaktiebolaget L M Ericsson's current Enterprise Value is $31,727 Mil.
Telefonaktiebolaget L M Ericsson's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,621 Mil.
* 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 EV-to-OCF of 8.76 as of Aug. 10, 2026. This is 20% below median its historical median of 10.99. Over the past decade, Telefonaktiebolaget L M Ericsson's EV-to-OCF has ranged from 4.47 to 30.15. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1248 out of 2496 companies in the Hardware industry, placing it in the top 50%.
Is Telefonaktiebolaget L M Ericsson's EV-to-OCF too high?
Telefonaktiebolaget L M Ericsson's current EV-to-OCF of 8.76 is 20% below median its 10-year median of 10.99. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 30.15. The Hardware industry median EV-to-OCF is 8.95. Telefonaktiebolaget L M Ericsson's value of 8.76 is 2.1% below this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #1248 out of 2496 companies in the Hardware industry, which is above the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's EV-to-OCF compare to CSCO and MSI?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1248 out of 2496 companies for EV-to-OCF. This puts Telefonaktiebolaget L M Ericsson in the upper half of its industry. The industry median EV-to-OCF is 8.95. Telefonaktiebolaget L M Ericsson's value of 8.76 is 2.1% below this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own EV-to-OCF has ranged from 4.47 to 30.15 over the past decade. While the company's 10-year median is 10.99 vs. the industry median of 8.95, 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 EV-to-OCF for a Hardware company?
The median EV-to-OCF among Hardware companies is 8.95, based on 2,496 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current EV-to-OCF of 8.76 is 2.1% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median EV-to-OCF is 8.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current EV-to-OCF is 8.76, which is 20% below median its own 10-year median of 10.99. 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 $7.27, compared to a current price of $9.85 — trading 35.4% above its estimated fair value. The current EV-to-OCF is 8.76, which is 20% below median its 10-year median of 10.99 and 2.1% below the Hardware industry median of 8.95. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current EV-to-OCF is 8.76 as of Aug. 10, 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 $9.85 is trading 35.4% above its estimated GF Value™ of $7.27.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
EV-to-OCF: 8.76 (20% below median its 10-year median of 10.99)
GF Value™: $7.27 vs. price of $9.85 (35.4% above fair value)
Industry Position: 2.1% below the Hardware median (#1248 of 2496)
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.
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.
67GF Score
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