ERIXF (Telefonaktiebolaget L M Ericsson) Risk Assessment


ERIXF Telefonaktiebolaget L M Ericsson ERIXF
59 GF Score
Price $10.91
GF Value $7.20
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Telefonaktiebolaget L M Ericsson Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Telefonaktiebolaget L M Ericsson is: Moderate Risk: Sensitive, better choose undervalued stock.

Telefonaktiebolaget L M Ericsson  (OTCPK:ERIXF) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Telefonaktiebolaget L M Ericsson Risk Assessment Related Terms

ERIXF vs CSCO, CIEN, MSI: Risk Assessment Comparison

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

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

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Risk Assessment falls into.


ERIXF
59GF Score
Telefonaktiebolaget L M Ericsson ERIXF
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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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 $10.91 is trading 51.5% above its estimated GF Value™ of $7.20. GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.

Key valuation signals for ERIXF:

  • Risk Assessment:
  • GF Value™: $7.20 vs. price of $10.91 (51.5% above fair value)
  • GF Score™: 59/100 with 3 warning signs

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

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.
59GF Score

Get the complete analysis for ERIXF

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

$10.91
Price
$7.20
GF Value