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Telefonaktiebolaget L M Ericsson (OHEL:ERIBR) Shiller PE Ratio : 182.50 (As of Apr. 01, 2025)


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What is Telefonaktiebolaget L M Ericsson Shiller PE Ratio?

As of today (2025-04-01), Telefonaktiebolaget L M Ericsson's current share price is €7.30. Telefonaktiebolaget L M Ericsson's E10 for the quarter that ended in Dec. 2024 was €0.04. Telefonaktiebolaget L M Ericsson's Shiller PE Ratio for today is 182.50.

The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Shiller PE Ratio or its related term are showing as below:

OHEL:ERIBR' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.76   Med: 54.43   Max: 226.9
Current: 184.2

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 54.43.

OHEL:ERIBR's Shiller PE Ratio is ranked worse than
94.78% of 1187 companies
in the Hardware industry
Industry Median: 26.33 vs OHEL:ERIBR: 184.20

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 Dec. 2024 was €0.125. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €0.04 for the trailing ten years ended in Dec. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Telefonaktiebolaget L M Ericsson Shiller PE Ratio Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Shiller PE Ratio 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 Shiller PE Ratio Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 80.20 65.22 29.25 71.46 213.13

Telefonaktiebolaget L M Ericsson Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Shiller PE Ratio 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 71.46 65.80 149.23 171.80 213.13

Competitive Comparison of Telefonaktiebolaget L M Ericsson's Shiller PE Ratio

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's Shiller PE Ratio Distribution in the 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.


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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.

Telefonaktiebolaget L M Ericsson's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=7.30/0.04
=182.50

* 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's E10 for the quarter that ended in Dec. 2024 is calculated as:

For example, Telefonaktiebolaget L M Ericsson's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.125/132.9872*132.9872
=0.125

Current CPI (Dec. 2024) = 132.9872.

Telefonaktiebolaget L M Ericsson Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201503 0.043 99.950 0.057
201506 0.069 99.995 0.092
201509 0.100 100.228 0.133
201512 0.232 100.276 0.308
201603 0.065 100.751 0.086
201606 0.051 101.019 0.067
201609 -0.007 101.138 -0.009
201612 -0.050 102.022 -0.065
201703 -0.323 102.022 -0.421
201706 -0.014 102.752 -0.018
201709 -0.114 103.279 -0.147
201712 -0.579 103.793 -0.742
201803 -0.025 103.962 -0.032
201806 -0.056 104.875 -0.071
201809 0.080 105.679 0.101
201812 -0.194 105.912 -0.244
201903 0.067 105.886 0.084
201906 0.048 106.742 0.060
201909 -0.177 107.214 -0.220
201912 0.127 107.766 0.157
202003 0.060 106.563 0.075
202006 0.071 107.498 0.088
202009 0.154 107.635 0.190
202012 0.222 108.296 0.273
202103 0.094 108.360 0.115
202106 0.109 108.928 0.133
202109 0.170 110.338 0.205
202112 0.294 112.486 0.348
202203 0.084 114.825 0.097
202206 0.127 118.384 0.143
202209 0.144 122.296 0.157
202212 0.166 126.365 0.175
202303 0.040 127.042 0.042
202306 -0.018 129.407 -0.018
202309 -0.779 130.224 -0.796
202312 0.091 131.912 0.092
202403 0.068 132.205 0.068
202406 -0.296 132.716 -0.297
202409 0.100 132.304 0.101
202412 0.125 132.987 0.125

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  (OHEL:ERIBR) 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

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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 operate mobile networks. The firm divides its business into three segments: networks, cloud and software services, and enterprise. Wireless carriers have traditionally been the firm's primary customers, but it is pushing to cater more to enterprises as well, as both try to take advantage of 5G capabilities and utilize "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers.

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