Last Price$8.30.7%
Market Cap$28.2B
DCF value
$26.1
Undervalued (DCF value)
214.8%
Discount Rate
6.7%
Long-Term Growth Rate
4.0%
Stock quality
7/10
Good
ERIC DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Dec'19 Actual | Dec'20 Actual | Dec'21 Actual | Dec'22 Actual | Dec'23 Actual | Dec'24 Estimate | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 227,216.0 7.8% | 232,390.0 2.3% | 232,314.0 (0.0%) | 271,546.0 16.9% | 263,351.0 (3.0%) | 252,324.0 (4.2%) | 264,816.8 5.0% | 269,596.3 1.8% | 274,979.7 2.0% | 320,846.1 16.7% | 367,582.4 14.6% | 413,358.4 12.5% | 456,099.4 10.3% | 493,621.1 8.2% | 523,797.7 6.1% | 544,749.6 4.0% |
% margin | 10,564.0 4.6% | 27,808.0 12.0% | 31,780.0 13.7% | 27,083.0 10.0% | 11,983.0 4.6% | 24,466.4 9.7% | 25,677.7 9.7% | 26,141.2 9.7% | 26,663.2 9.7% | 31,110.6 9.7% | 35,642.3 9.7% | 40,081.0 9.7% | 44,225.3 9.7% | 47,863.6 9.7% | 50,789.6 9.7% | 52,821.2 9.7% |
NOPAT % effective tax rate | 2,218.4 1.0% | 18,009.0 7.7% | 24,967.7 10.7% | 21,033.4 7.7% | 13,414.1 5.1% | 27,388.4 10.9% | 28,744.5 10.9% | 29,263.2 10.9% | 29,847.6 10.9% | 34,826.1 10.9% | 39,899.1 10.9% | 44,867.9 10.9% | 49,507.2 10.9% | 53,579.9 10.9% | 56,855.5 10.9% | 59,129.7 10.9% |
% of revenue | 7,080.0 3.1% | 7,072.0 3.0% | 7,115.0 3.1% | 8,556.0 3.2% | 11,157.0 4.2% | 8,789.3 3.5% | 9,224.5 3.5% | 9,391.0 3.5% | 9,578.5 3.5% | 11,176.2 3.5% | 12,804.2 3.5% | 14,398.7 3.5% | 15,887.6 3.5% | 17,194.6 3.5% | 18,245.7 3.5% | 18,975.6 3.5% |
% of revenue | (6,663.0) (2.9%) | (5,310.0) (2.3%) | (4,625.0) (2.0%) | (6,197.0) (2.3%) | (3,297.0) (1.3%) | (4,646.9) (1.8%) | (4,877.0) (1.8%) | (4,965.0) (1.8%) | (5,064.1) (1.8%) | (5,908.8) (1.8%) | (6,769.5) (1.8%) | (7,612.5) (1.8%) | (8,399.7) (1.8%) | (9,090.7) (1.8%) | (9,646.4) (1.8%) | (10,032.3) (1.8%) |
% of revenue | 2,807.0 1.2% | (3,605.0) (1.6%) | 4,002.0 1.7% | 619.0 0.2% | (11,999.0) (4.6%) | (2,191.6) (0.9%) | (2,300.1) (0.9%) | (2,341.6) (0.9%) | (2,388.3) (0.9%) | (2,786.7) (0.9%) | (3,192.6) (0.9%) | (3,590.2) (0.9%) | (3,961.5) (0.9%) | (4,287.4) (0.9%) | (4,549.5) (0.9%) | (4,731.4) (0.9%) |
Free Cash Flow to Firm (FCFF) % of revenue | 5,442.4 2.4% | 16,166.0 7.0% | 31,459.7 13.5% | 24,011.4 8.8% | 9,275.1 3.5% | 29,339.3 11.6% | 30,791.9 11.6% | 31,347.7 11.6% | 31,973.6 11.6% | 37,306.8 11.6% | 42,741.1 11.6% | 48,063.8 11.6% | 53,033.6 11.6% | 57,396.5 11.6% | 60,905.3 11.6% | 63,341.5 11.6% |
% of FCFF used in calculation | 100.0% | 83.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | |||||||
Discount factor | 0.97 | 0.91 | 0.85 | 0.80 | 0.75 | 0.70 | 0.66 | 0.62 | 0.58 | |||||||
Discounted FCFF (DFCFF) | 24,751.7 | 28,461.7 | 27,219.8 | 29,779.6 | 31,990.0 | 33,730.5 | 34,897.4 | 35,413.1 | 35,234.8 |
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ERIC DCF Value
DCF Value Calculation
as of Mar 03, 2025
Sum of DFCFF
% share of EV
281.5B
30.0%
Terminal Value (TV)
1,135.3B
Discounted TV
% share of EV
656.8B
70.0%
938.3B
Total Debt
54.3B
934.3B
Shares outstanding
3,393.2M
FX rate
0.1
26.1
214.8% undervalued
Equity Value Bridge
ERIC DCF Financials
Revenue
SEK 263.4B -> SEK 523.8B
7.1% CAGR
Operating Income
SEK 12.0B -> SEK 50.8B
15.5% CAGR
FCFF
SEK 9,275.1M -> SEK 60.9B
20.7% CAGR
ERIC DCF sensitivity
DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
$27.0
$27.0
$27.0
$27.0
$27.0
6.5%
$26.0
$26.0
$26.0
$26.0
$26.0
6.7%
$26.0
$26.0
$26.0
$26.0
$26.0
7.5%
$25.0
$25.0
$25.0
$25.0
$25.0
8.0%
$25.0
$25.0
$25.0
$25.0
$25.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
6.0%
225.0%
225.0%
225.0%
225.0%
225.0%
6.5%
213.0%
213.0%
213.0%
213.0%
213.0%
6.7%
213.0%
213.0%
213.0%
213.0%
213.0%
7.5%
201.0%
201.0%
201.0%
201.0%
201.0%
8.0%
201.0%
201.0%
201.0%
201.0%
201.0%
Explore more intrinsic value tools hub for ERIC
Margin of safety
Peter Lynch charts
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Relative Value
Earnings growth model
Discount rate
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Intrinsic Value
Reverse DCF
FAQ
What is Telefonaktiebolaget LM Ericsson (publ) DCF (discounted cash flow) valuation?
As of Mar 03, 2025, Telefonaktiebolaget LM Ericsson (publ)'s Discounted Cash Flow (DCF) valuation estimates its share price at $26.1. This suggests it may be undervalued by 214.8% compared to its current price of around $8.3, using a WACC of 6.7% and growth rates of 4.0%.
What is Telefonaktiebolaget LM Ericsson (publ) WACC?
As of Mar 03, 2025, Telefonaktiebolaget LM Ericsson (publ)'s Weighted Average Cost of Capital (WACC) is approximately 6.7%.
What is Telefonaktiebolaget LM Ericsson (publ) Enterprise Value?
As of Mar 03, 2025, Telefonaktiebolaget LM Ericsson (publ)'s Enterprise Value (EV) is approximately SEK 938.3B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.