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Telefonaktiebolaget L M EricssonERIXF 66 Shiller PE Ratio is 142.14 as of Aug. 26, 2026, which is 98% above its 10-year median of 71.85. GuruFocus rates ERIXF with a GF Scoreâ„¢ of 66/100 and a GF Valueâ„¢ of $7.26 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,416 Hardware companies, Telefonaktiebolaget L M Ericsson ranks worse than 87.71% on this metric.
The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Shiller PE Ratio or its related term are showing as below:
ERIXF'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.76 Med: 71.85 Max: 226.9
Current: 132.69
During the past years, Telefonaktiebolaget L M Ericsson's highest Shiller PE Ratio was 226.90. The lowest was 11.76. And the median was 71.85.
ERIXF's Shiller PE Ratio is ranked worse than 87.71% of 1416
companies
in the Hardware industry
Industry Median: 29.8
vs ERIXF: 132.69
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Telefonaktiebolaget L M Ericsson's adjusted earnings per share data for the three months ended in Jun. 2026 was $0.128. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.07 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Telefonaktiebolaget L M Ericsson Shiller PE Ratio Related Terms
Telefonaktiebolaget L M Ericsson Shiller PE 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.
Telefonaktiebolaget L M Ericsson Shiller PE Ratio Chart
ERIXF vs CSCO, MSI, HPE: Shiller PE Ratio Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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.
Telefonaktiebolaget L M Ericsson Shiller PE Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Shiller PE Ratio falls into.
Telefonaktiebolaget L M Ericsson Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Telefonaktiebolaget L M Ericsson (ERIXF) has a Shiller PE Ratio of 142.14 as of Aug. 26, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. This is 98% above median its historical median of 71.85. Over the past decade, Telefonaktiebolaget L M Ericsson's Shiller PE Ratio has ranged from 11.76 to 226.90. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1242 out of 1416 companies in the Hardware industry, placing it in the top 87.7%.
Is Telefonaktiebolaget L M Ericsson's Shiller PE Ratio too high?
Telefonaktiebolaget L M Ericsson's current Shiller PE Ratio of 142.14 is 98% above median its 10-year median of 71.85. Over the past 10 years, this metric has ranged from a low of 11.76 to a high of 226.90. The Hardware industry median Shiller PE Ratio is 29.80. Telefonaktiebolaget L M Ericsson's value of 142.14 is 377% above this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #1242 out of 1416 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Telefonaktiebolaget L M Ericsson has a GF Scoreâ„¢ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Shiller PE Ratio compare to CSCO and MSI?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #1242 out of 1416 companies for Shiller PE Ratio. This places Telefonaktiebolaget L M Ericsson in the lower half of its industry. The industry median Shiller PE Ratio is 29.80. Telefonaktiebolaget L M Ericsson's value of 142.14 is 377% above this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own Shiller PE Ratio has ranged from 11.76 to 226.90 over the past decade. While the company's 10-year median is 71.85 vs. the industry median of 29.80, Telefonaktiebolaget L M Ericsson 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 Shiller PE Ratio for a Hardware company?
The median Shiller PE Ratio among Hardware companies is 29.80, based on 1,416 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current Shiller PE Ratio of 142.14 is 377% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median Shiller PE Ratio is 29.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current Shiller PE Ratio is 142.14, which is 98% above median its own 10-year median of 71.85. 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 $7.26, compared to a current price of $9.95 — trading 37.1% above its estimated fair value. The current Shiller PE Ratio is 142.14, which is 98% above median its 10-year median of 71.85 and 377% above the Hardware industry median of 29.80. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Shiller PE Ratio is 142.14 as of Aug. 26, 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 $9.95 is trading 37.1% above its estimated GF Value™ of $7.26.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
Shiller PE Ratio: 142.14 (98% above median its 10-year median of 71.85)
GF Value™: $7.26 vs. price of $9.95 (37.1% above fair value)
Industry Position: 377% above the Hardware median (#1242 of 1416)
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.
66GF Score
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