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Telefonaktiebolaget L M Ericsson (FRA:ERCA) Shiller PE Ratio : 59.50 (As of May. 04, 2024)


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What is Telefonaktiebolaget L M Ericsson Shiller PE Ratio?

As of today (2024-05-04), Telefonaktiebolaget L M Ericsson's current share price is €4.76. Telefonaktiebolaget L M Ericsson's E10 for the quarter that ended in Mar. 2024 was €0.08. Telefonaktiebolaget L M Ericsson's Shiller PE Ratio for today is 59.50.

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

FRA:ERCA' s Shiller PE Ratio Range Over the Past 10 Years
Min: 11.76   Med: 32.33   Max: 101.58
Current: 64.36

During the past years, Telefonaktiebolaget L M Ericsson's highest Shiller PE Ratio was 101.58. The lowest was 11.76. And the median was 32.33.

FRA:ERCA's Shiller PE Ratio is ranked worse than
84.98% of 1378 companies
in the Hardware industry
Industry Median: 23.795 vs FRA:ERCA: 64.36

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 Mar. 2024 was €0.068. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €0.08 for the trailing ten years ended in Mar. 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 76.38 80.20 65.22 29.25 71.92

Telefonaktiebolaget L M Ericsson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 28.98 28.48 51.97 71.92 66.32

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.



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
=4.76/0.08
=59.50

* 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 Mar. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.068/130.9575*130.9575
=0.068

Current CPI (Mar. 2024) = 130.9575.

Telefonaktiebolaget L M Ericsson Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.087 100.432 0.113
201409 0.088 100.161 0.115
201412 0.137 100.225 0.179
201503 0.043 99.950 0.056
201506 0.069 99.995 0.090
201509 0.100 100.228 0.131
201512 0.232 100.276 0.303
201603 0.065 100.751 0.084
201606 0.051 101.019 0.066
201609 -0.007 101.138 -0.009
201612 -0.050 102.022 -0.064
201703 -0.323 102.022 -0.415
201706 -0.014 102.752 -0.018
201709 -0.114 103.279 -0.145
201712 -0.579 103.793 -0.731
201803 -0.025 103.962 -0.031
201806 -0.056 104.875 -0.070
201809 0.080 105.679 0.099
201812 -0.194 105.912 -0.240
201903 0.067 105.886 0.083
201906 0.048 106.742 0.059
201909 -0.177 107.214 -0.216
201912 0.127 107.766 0.154
202003 0.060 106.563 0.074
202006 0.071 107.498 0.086
202009 0.154 107.635 0.187
202012 0.222 108.296 0.268
202103 0.094 108.360 0.114
202106 0.109 108.928 0.131
202109 0.170 110.338 0.202
202112 0.294 112.486 0.342
202203 0.084 114.825 0.096
202206 0.127 118.384 0.140
202209 0.144 122.296 0.154
202212 0.166 126.365 0.172
202303 0.040 127.042 0.041
202306 -0.018 129.407 -0.018
202309 -0.779 130.224 -0.783
202312 0.091 130.958 0.091
202403 0.068 130.958 0.068

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  (FRA:ERCA) 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 (FRA:ERCA) Business Description

Address
Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83
Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.

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