Telefonaktiebolaget LM Ericsson (publ) (ERIC) P/E Ratio History
Historical price-to-earnings valuation from 1999 to 2025
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ERIC Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Telefonaktiebolaget LM Ericsson (publ) (ERIC) trades at a price-to-earnings ratio of 13.7x, with a stock price of $11.93 and trailing twelve-month earnings per share of $8.30.
The current P/E is 47% above its 5-year average of 9.3x. Over the past five years, ERIC's P/E has ranged from a low of 0.8x to a high of 100.8x, placing the current valuation at the 80th percentile of its historical range.
Compared to the Technology sector median P/E of 26.7x, ERIC trades at a 49% discount to its sector peers. The sector includes 358 companies with P/E ratios ranging from 0.0x to 197.6x.
Relative to the broader market, ERIC trades at a notable discount to the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ERIC DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ERIC P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $77B | 104.0 | - | -52% | |
| $373B | 37.0Lowest | - | +0% | |
| $12B | 359.8 | 78.83 | +225% | |
| $77B | 640.9 | - | +47% | |
| $3B | 176.2 | - | +158% | |
| $197B | 37.2 | 17.90Best | -44% | |
| $146B | 55.0 | - | +401%Best |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
ERIC Historical P/E Data (1999–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $9.65 | $8.34 | 1.2x | -85% |
| FY2025 Q3 | $8.27 | $7.30 | 1.1x | -85% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $8.48 | $5.08 | 1.7x | -79% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $7.76 | $0.44 | 17.6x | +126% |
| FY2024 Q4 | $8.06 | $0.08 | 100.8x | +1193% | |
| FY2023 Q2 | Fri Jun 30 2023 00:00:00 GM | $5.45 | $3.62 | 1.5x | -81% |
| FY2023 Q1 | Fri Mar 31 2023 00:00:00 GM | $5.85 | $5.24 | 1.1x | -86% |
| FY2022 Q4 | Sat Dec 31 2022 00:00:00 GM | $5.84 | $5.67 | 1.0x | -87% |
| FY2022 Q3 | Fri Sep 30 2022 00:00:00 GM | $5.74 | $7.02 | 0.8x | -90% |
| FY2022 Q2 | $7.40 | $7.12 | 1.0x | -87% | |
| FY2022 Q1 | $9.14 | $6.83 | 1.3x | -83% | |
| FY2021 Q4 | Fri Dec 31 2021 00:00:00 GM | $10.87 | $6.93 | 1.6x | -80% |
Average P/E for displayed period: 7.8x
Full ERIC Stock Analysis
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Start ComparisonERIC — Frequently Asked Questions
Quick answers to the most common questions about buying ERIC stock.
Is ERIC stock overvalued or undervalued?
ERIC trades at 13.7x P/E, above its 5-year average of 9.3x. The 80th percentile ranking indicates a premium to historical valuation.
How does ERIC's valuation compare to peers?
Telefonaktiebolaget LM Ericsson (publ) P/E of 13.7x compares to sector median of 26.7x. The discount suggests lower growth expectations or higher risk.
What is ERIC's PEG ratio?
ERIC PEG ratio is 1.21. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 1999-2025.