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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, L E Lundbergforetagen AB has a Sloan Ratio of 4.61%, indicating the company is in the safe zone and there is no funny business with accruals.
L E Lundbergforetagen AB (FRA:LU3B) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, L E Lundbergforetagen AB has a Sloan Ratio of 4.61%, indicating the company is in the safe zone and there is no funny business with accruals.
L E Lundbergforetagen AB Sloan Ratio % Related Terms
L E Lundbergforetagen AB Sloan 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 Conglomerates subindustry, L E Lundbergforetagen AB's Sloan Ratio %, along with its competitors' market caps and Sloan 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.
L E Lundbergforetagen AB Sloan Ratio % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, L E Lundbergforetagen AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where L E Lundbergforetagen AB's Sloan Ratio % falls into.
L E Lundbergforetagen AB Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
L E Lundbergforetagen AB's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
L E Lundbergforetagen AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 159.631 (Jun. 2025 ) + 225.074 (Sep. 2025 ) + 431.25 (Dec. 2025 ) + 441.078 (Mar. 2026 ) = €1,257 Mil.
L E Lundbergforetagen AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 375.65 (Jun. 2025 ) + 117.446 (Sep. 2025 ) + 153.368 (Dec. 2025 ) + 143.065 (Mar. 2026 ) = €790 Mil.
L E Lundbergforetagen AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -149.098 (Jun. 2025 ) + -152.716 (Sep. 2025 ) + -181.855 (Dec. 2025 ) + -121.062 (Mar. 2026 ) = €-605 Mil.
* 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.
L E Lundbergforetagen AB (FRA:LU3B) has a Sloan Ratio % of 4.61% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on L E Lundbergforetagen AB and its competitors.
Is L E Lundbergforetagen AB's Sloan Ratio % too high?
L E Lundbergforetagen AB's current Sloan Ratio % is 4.61%. Overall, L E Lundbergforetagen AB has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L E Lundbergforetagen AB's Sloan Ratio % compare to MMM and HON?
L E Lundbergforetagen AB's Sloan Ratio % of 4.61% can be compared against companies in the Conglomerates industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Conglomerates company?
A good Sloan Ratio % depends on the Conglomerates industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on L E Lundbergforetagen AB and its competitors. L E Lundbergforetagen AB's current Sloan Ratio % is 4.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L E Lundbergforetagen AB stock overvalued right now?
Based on GuruFocus' analysis, L E Lundbergforetagen AB (FRA:LU3B) is currently considered Modestly Overvalued. The stock's GF Value™ is €44.60, compared to a current price of €53.15 — trading 19.2% above its estimated fair value. The current Sloan Ratio % is 4.61%. L E Lundbergforetagen AB's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For L E Lundbergforetagen AB (FRA:LU3B), the current Sloan Ratio % is 4.61% as of Mar. 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 L E Lundbergforetagen AB (FRA:LU3B) Overvalued in 2026?
Based on GuruFocus' analysis, L E Lundbergforetagen AB stock appears to be overvalued.
The current stock price of €53.15 is trading 19.2% above its estimated GF Value™ of €44.60.
GuruFocus considers L E Lundbergforetagen AB to be Modestly Overvalued.
Key valuation signals for FRA:LU3B:
Sloan Ratio %: 4.61%
GF Value™: €44.60 vs. price of €53.15 (19.2% above fair value)
No single metric tells the full story. See the FRA:LU3B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L E Lundbergforetagen AB is an investment holding company with a long-term, activist orientation. Its portfolio includes a wholly owned unlisted real estate entity, publicly-traded subsidiaries, and other shareholdings. Lundberg's investment objective is to generate returns on capital that over time substantially exceed the yield on a risk-free, interest-bearing instrument. Real estate operations, which the company has conducted through subsidiaries for decades, account for nearly half of the company's net asset value. Lundberg exercises activism through board representation on all of its portfolio companies. It supports its capital allocation program by maintaining low levels of indebtedness on its balance sheet.
72GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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