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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.
Ericsson Nikola Tesla DDZAG:ERNT -0.97%76 PEG Ratio is 4.73 as of Jul. 27, 2026, which is 53% below its 10-year median of 9.97. GuruFocus rates ZAG:ERNT with a GF Score™ of 76/100 and a GF Value™ of €183.57 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 162 Telecommunication Services companies, Ericsson Nikola Tesla DD ranks worse than 78.4% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Ericsson Nikola Tesla DD's PEG Ratio or its related term are showing as below:
ZAG:ERNT'
s PEG Ratio Range Over the Past 10 Years
Min: 0.97 Med: 9.97 Max: 204.65
Current: 4.71
During the past 13 years, Ericsson Nikola Tesla DD's highest PEG Ratio was 204.65. The lowest was 0.97. And the median was 9.97.
ZAG:ERNT's PEG Ratio is ranked worse than 78.4% of 162
companies
in the Telecommunication Services industry
Industry Median: 2.17
vs ZAG:ERNT: 4.71
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Ericsson Nikola Tesla DD (ZAG:ERNT) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Ericsson Nikola Tesla DD PEG Ratio Related Terms
Ericsson Nikola Tesla DD PEG Ratio 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 Telecom Services subindustry, Ericsson Nikola Tesla DD's PEG Ratio, along with its competitors' market caps and PEG 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.
Ericsson Nikola Tesla DD PEG Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ericsson Nikola Tesla DD's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Ericsson Nikola Tesla DD's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Ericsson Nikola Tesla DD (ZAG:ERNT) has a PEG Ratio of 4.73 as of Jul. 27, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Ericsson Nikola Tesla DD and its competitors. This is 53% below median its historical median of 9.97. Over the past decade, Ericsson Nikola Tesla DD's PEG Ratio has ranged from 0.97 to 204.65. According to the industry distribution chart, Ericsson Nikola Tesla DD ranks #127 out of 162 companies in the Telecommunication Services industry, placing it in the top 78.4%.
Is Ericsson Nikola Tesla DD's PEG Ratio too high?
Ericsson Nikola Tesla DD's current PEG Ratio of 4.73 is 53% below median its 10-year median of 9.97. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 204.65. The Telecommunication Services industry median PEG Ratio is 2.17. Ericsson Nikola Tesla DD's value of 4.73 is 118% above this industry median. Based on the distribution chart, Ericsson Nikola Tesla DD ranks #127 out of 162 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Ericsson Nikola Tesla DD has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ericsson Nikola Tesla DD's PEG Ratio compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Ericsson Nikola Tesla DD ranks #127 out of 162 companies for PEG Ratio. This places Ericsson Nikola Tesla DD in the lower half of its industry. The industry median PEG Ratio is 2.17. Ericsson Nikola Tesla DD's value of 4.73 is 118% above this benchmark. Historically, Ericsson Nikola Tesla DD's own PEG Ratio has ranged from 0.97 to 204.65 over the past decade. While the company's 10-year median is 9.97 vs. the industry median of 2.17, Ericsson Nikola Tesla DD 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 PEG Ratio for a Telecommunication Services company?
The median PEG Ratio among Telecommunication Services companies is 2.17, based on 162 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ericsson Nikola Tesla DD's current PEG Ratio of 4.73 is 118% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Ericsson Nikola Tesla DD and its competitors. For the Telecommunication Services industry, the median PEG Ratio is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ericsson Nikola Tesla DD's current PEG Ratio is 4.73, which is 53% below median its own 10-year median of 9.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ericsson Nikola Tesla DD stock overvalued right now?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD (ZAG:ERNT) is currently considered Modestly Overvalued. The stock's GF Value™ is €183.57, compared to a current price of €205.00 — trading 11.7% above its estimated fair value. The current PEG Ratio is 4.73, which is 53% below median its 10-year median of 9.97 and 118% above the Telecommunication Services industry median of 2.17. Ericsson Nikola Tesla DD's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Ericsson Nikola Tesla DD (ZAG:ERNT), the current PEG Ratio is 4.73 as of Jul. 27, 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 Ericsson Nikola Tesla DD (ZAG:ERNT) Overvalued in 2026?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD stock appears to be overvalued.
The current stock price of €205.00 is trading 11.7% above its estimated GF Value™ of €183.57.
GuruFocus considers Ericsson Nikola Tesla DD to be Modestly Overvalued.
Key valuation signals for ZAG:ERNT:
PEG Ratio: 4.73 (53% below median its 10-year median of 9.97)
GF Value™: €183.57 vs. price of €205.00 (11.7% above fair value)
Industry Position: 118% above the Telecommunication Services median (#127 of 162)
No single metric tells the full story. See the ZAG:ERNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ericsson Nikola Tesla DD is a provider of communication products and services and ICT solutions related to healthcare, national and public safety, state administration, transport, utilities, and multimedia communication. The company's principal activities include research and development of telecommunications software and services, design, testing, and integration of total communications solutions, managed services, supply, and maintenance of communications solutions and ICT solutions, towards customers within the Ericsson Group, customers in the Republic of Croatia, and Bosnia and Herzegovina, and several customers in Central and Eastern Europe. The company operates in four segments Networks, Digital Services, Managed Services, and Others. It earns maximum revenue from Networks segment.
76GF Score
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