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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Ericsson Nikola Tesla DD's 10-Year RORE % for the quarter that ended in Jun. 2026 was 9.07%.
The industry rank for Ericsson Nikola Tesla DD's 10-Year RORE % or its related term are showing as below:
ZAG:ERNT's 10-Year RORE % is ranked worse than 50.18% of 273
companies
in the Telecommunication Services industry
Industry Median: 9.07
vs ZAG:ERNT: 9.07
Ericsson Nikola Tesla DD (ZAG:ERNT) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Ericsson Nikola Tesla DD 10-Year RORE % Related Terms
Ericsson Nikola Tesla DD 10-Year RORE % 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.
ZAG:ERNT vs VZ, TMUS, T: 10-Year RORE % Comparison
For the Telecom Services subindustry, Ericsson Nikola Tesla DD's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ericsson Nikola Tesla DD's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ericsson Nikola Tesla DD's 10-Year RORE % 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.
In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 10-year before.
Ericsson Nikola Tesla DD (ZAG:ERNT) has a 10-Year RORE % of 9.07 as of Jun. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Ericsson Nikola Tesla DD and its competitors. According to the industry distribution chart, Ericsson Nikola Tesla DD ranks #137 out of 273 companies in the Telecommunication Services industry, placing it in the top 50.2%.
Is Ericsson Nikola Tesla DD's 10-Year RORE % too high?
Ericsson Nikola Tesla DD's current 10-Year RORE % is 9.07. The Telecommunication Services industry median 10-Year RORE % is 9.07. Ericsson Nikola Tesla DD's value of 9.07 is 0% at this industry median. Based on the distribution chart, Ericsson Nikola Tesla DD ranks #137 out of 273 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Ericsson Nikola Tesla DD has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ericsson Nikola Tesla DD's 10-Year RORE % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Ericsson Nikola Tesla DD ranks #137 out of 273 companies for 10-Year RORE %. This places Ericsson Nikola Tesla DD in the lower half of its industry. The industry median 10-Year RORE % is 9.07. Ericsson Nikola Tesla DD's value of 9.07 is 0% at this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Telecommunication Services company?
The median 10-Year RORE % among Telecommunication Services companies is 9.07, based on 273 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ericsson Nikola Tesla DD's current 10-Year RORE % of 9.07 is 0% at 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Ericsson Nikola Tesla DD and its competitors. For the Telecommunication Services industry, the median 10-Year RORE % is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ericsson Nikola Tesla DD's current 10-Year RORE % is 9.07. 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 €180.73, compared to a current price of €205.00 — trading 13.4% above its estimated fair value. The current 10-Year RORE % is 9.07 and 0% at the Telecommunication Services industry median of 9.07. Ericsson Nikola Tesla DD's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Ericsson Nikola Tesla DD (ZAG:ERNT), the current 10-Year RORE % is 9.07 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 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 13.4% above its estimated GF Value™ of €180.73.
GuruFocus considers Ericsson Nikola Tesla DD to be Modestly Overvalued.
Key valuation signals for ZAG:ERNT:
10-Year RORE %: 9.07
GF Value™: €180.73 vs. price of €205.00 (13.4% above fair value)
Industry Position: 0% at the Telecommunication Services median (#137 of 273)
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.
75GF Score
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