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Telefonaktiebolaget L M Ericsson (XTER:ERCB) EV-to-FCF : 7.33 (As of Dec. 14, 2024)


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What is Telefonaktiebolaget L M Ericsson EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Telefonaktiebolaget L M Ericsson's Enterprise Value is €25,560 Mil. Telefonaktiebolaget L M Ericsson's Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2024 was €3,485 Mil. Therefore, Telefonaktiebolaget L M Ericsson's EV-to-FCF for today is 7.33.

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

XTER:ERCB' s EV-to-FCF Range Over the Past 10 Years
Min: -76.2   Med: 19.81   Max: 126.78
Current: 7.5

During the past 13 years, the highest EV-to-FCF of Telefonaktiebolaget L M Ericsson was 126.78. The lowest was -76.20. And the median was 19.81.

XTER:ERCB's EV-to-FCF is ranked better than
74.86% of 1416 companies
in the Hardware industry
Industry Median: 18.155 vs XTER:ERCB: 7.50

EV-to-FCF 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.

As of today (2024-12-14), Telefonaktiebolaget L M Ericsson's stock price is €7.88. Telefonaktiebolaget L M Ericsson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was €-0.037. Therefore, Telefonaktiebolaget L M Ericsson's PE Ratio (TTM) for today is At Loss.


Telefonaktiebolaget L M Ericsson EV-to-FCF Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's EV-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 EV-to-FCF Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.85 13.15 8.77 7.76 124.71

Telefonaktiebolaget L M Ericsson Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
EV-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 28.47 124.71 14.62 8.47 6.27

Competitive Comparison of Telefonaktiebolaget L M Ericsson's EV-to-FCF

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

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

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



Telefonaktiebolaget L M Ericsson EV-to-FCF Calculation

Telefonaktiebolaget L M Ericsson's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=25560.273/3485.165
=7.33

Telefonaktiebolaget L M Ericsson's current Enterprise Value is €25,560 Mil.
Telefonaktiebolaget L M Ericsson's Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €3,485 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  (XTER:ERCB) EV-to-FCF Explanation

EV-to-FCF 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:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=7.88/-0.037
=At Loss

Telefonaktiebolaget L M Ericsson's share price for today is €7.88.
Telefonaktiebolaget L M Ericsson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €-0.037.

* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Telefonaktiebolaget L M Ericsson EV-to-FCF Related Terms

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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 facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.

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