GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (NAS:ERIC) » Definitions » Valuation Rank

Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Valuation Rank


View and export this data going back to 1989. Start your Free Trial

What is Telefonaktiebolaget L M Ericsson Valuation Rank?

The Valuation Rank measures the current valuation of a business relative to other companies in the same industry and its own historical valuation. The companies are split in equal numbers and then ranked from 1 to 10, with 10 as the most undervalued and 1 as the most overvalued.

  1. Three factors:
    • Absolute valuation (medpsvalue) relative to current stock price, rank among all companies
    • Historical valuation over the past 10 years. Rank pe, ps, pocf, ev2ebit over their own historical values
    • Industry relative valuation
  2. Companies without enough data is not ranked
  3. Companies with negative earnings are ranked lower

These three factors are used to calculate the value score for every eligible company, with values from 1 to 10. The final ranked companies are split in equal numbers and ranked from 1 to 10, with 10 as the most undervalued, and 1 as the most overvalued. The numbers of companies in each rank are the same.


Telefonaktiebolaget L M Ericsson Valuation Rank Related Terms

Thank you for viewing the detailed overview of Telefonaktiebolaget L M Ericsson's Valuation Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) 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.