Ericsson Earns Zacks Rank #2, Trades at P/E 14.3 and P/B 3.05
Ericsson holds a Zacks Rank #2 (Buy) and an A-grade Value score, trading at a P/E of 14.34 versus its industry’s 31.87 and a P/B of 3.05 vs 6.03. Its P/S of 1.56 and P/CF of 22.19 undercut industry averages of 2.22 and 43.33, highlighting sales and cash flow undervaluation.
1. Zacks Ranking and Value Grade
Ericsson holds a Zacks Rank #2 (Buy) and an A-grade Value Style Score, positioning it among the strongest undervalued names based on earnings estimate trends and valuation metrics.
2. P/E and P/B Comparison
The stock trades at a P/E of 14.34 against its industry average of 31.87 and a P/B of 3.05 versus 6.03, indicating shares are priced substantially below sector norms.
3. P/S and P/CF Metrics
Ericsson’s P/S ratio stands at 1.56 against an industry average of 2.22, while its P/CF of 22.19 compares with 43.33, underscoring potential undervaluation on sales and operating cash flow; its forward P/E spanned 12.48–18.61 over the past year.