Telefonaktiebolaget L M EricssonERIXF -4.47%59 5-Year Yield-on-Cost % is 5.20 as of Jul. 06, 2026, which is 6% above its 10-year median of 4.89. GuruFocus rates ERIXF with a GF Score™ of 59/100 and a GF Value™ of $7.33 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,405 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 73.31% on this metric.
The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % or its related term are showing as below:
ERIXF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.35 Med: 4.89 Max: 15.34
Current: 5.2
During the past 13 years, Telefonaktiebolaget L M Ericsson's highest Yield on Cost was 15.34. The lowest was 1.35. And the median was 4.89.
ERIXF's 5-Year Yield-on-Cost % is ranked better than 73.31% of 1405
companies
in the Hardware industry
Industry Median: 1.97
vs ERIXF: 5.20
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Telefonaktiebolaget L M Ericsson 5-Year Yield-on-Cost % Related Terms
ERIXF vs CSCO, CIEN, MSI: 5-Year Yield-on-Cost % Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % falls into.
Telefonaktiebolaget L M Ericsson 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Telefonaktiebolaget L M Ericsson (ERIXF) has a 5-Year Yield-on-Cost % of 5.20 as of Jul. 06, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. This is near median its historical median of 4.89. Over the past decade, Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % has ranged from 1.35 to 15.34. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #375 out of 1405 companies in the Hardware industry, placing it in the top 26.7%.
Is Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % too high?
Telefonaktiebolaget L M Ericsson's current 5-Year Yield-on-Cost % of 5.20 is near median its 10-year median of 4.89. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 15.34. The Hardware industry median 5-Year Yield-on-Cost % is 1.97. Telefonaktiebolaget L M Ericsson's value of 5.20 is 164% above this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #375 out of 1405 companies in the Hardware industry, which is above the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's 5-Year Yield-on-Cost % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #375 out of 1405 companies for 5-Year Yield-on-Cost %. This puts Telefonaktiebolaget L M Ericsson in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.97. Telefonaktiebolaget L M Ericsson's value of 5.20 is 164% above this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own 5-Year Yield-on-Cost % has ranged from 1.35 to 15.34 over the past decade. While the company's 10-year median is 4.89 vs. the industry median of 1.97, 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 5-Year Yield-on-Cost % for a Hardware company?
The median 5-Year Yield-on-Cost % among Hardware companies is 1.97, based on 1,405 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current 5-Year Yield-on-Cost % of 5.20 is 164% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median 5-Year Yield-on-Cost % is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current 5-Year Yield-on-Cost % is 5.20, which is near median its own 10-year median of 4.89. 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 $7.33, compared to a current price of $10.91 — trading 48.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.20, which is near median its 10-year median of 4.89 and 164% above the Hardware industry median of 1.97. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current 5-Year Yield-on-Cost % is 5.20 as of Jul. 06, 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 $10.91 is trading 48.8% above its estimated GF Value™ of $7.33.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
5-Year Yield-on-Cost %: 5.20 (near median its 10-year median of 4.89)
GF Value™: $7.33 vs. price of $10.91 (48.8% above fair value)
Industry Position: 164% above the Hardware median (#375 of 1405)
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
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
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