Ericsson
ERIC
#860
Rank
$19.33 B
Marketcap
$5.78
Share price
6.29%
Change (1 day)
-38.18%
Change (1 year)

P/E ratio for Ericsson (ERIC)

P/E ratio as of March 2023 (TTM): 8.22

According to Ericsson's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 8.21752. At the end of 2021 the company had a P/E ratio of 14.1.

P/E ratio history for Ericsson from 2001 to 2022

PE ratio at the end of each year

Year P/E ratio Change
202114.1-29.23%
202019.9-81.48%
2019108-369.02%
2018-40.0664.96%
2017-5.23-106.24%
201683.7
201424.113.49%
201321.3-43.62%
201237.7117.13%
201117.4

P/E ratio for similar companies or competitors

Company P/E ratio P/E ratio differencediff. Country
31.5 283.22%๐Ÿ‡บ๐Ÿ‡ธ USA
18.8 128.42%๐Ÿ‡บ๐Ÿ‡ธ USA
71.4 768.78%๐Ÿ‡บ๐Ÿ‡ธ USA
11.4 39.12%๐Ÿ‡บ๐Ÿ‡ธ USA
23.3 183.72%๐Ÿ‡บ๐Ÿ‡ธ USA
11.6 41.71%๐Ÿ‡บ๐Ÿ‡ธ USA
34.6 321.06%๐Ÿ‡บ๐Ÿ‡ธ USA
6.00-26.98%๐Ÿ‡ซ๐Ÿ‡ฎ Finland
42.2 413.97%๐Ÿ‡บ๐Ÿ‡ธ USA

How to read a P/E ratio?

The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.

Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.