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 |
|---|---|---|
| 2021 | 14.1 | -29.23% |
| 2020 | 19.9 | -81.48% |
| 2019 | 108 | -369.02% |
| 2018 | -40.0 | 664.96% |
| 2017 | -5.23 | -106.24% |
| 2016 | 83.7 | |
| 2014 | 24.1 | 13.49% |
| 2013 | 21.3 | -43.62% |
| 2012 | 37.7 | 117.13% |
| 2011 | 17.4 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Microsoft MSFT | 31.5 | 283.22% | 🇺🇸 USA |
 Cisco CSCO | 18.8 | 128.42% | 🇺🇸 USA |
 IBM IBM | 71.4 | 768.78% | 🇺🇸 USA |
 HP HPQ | 11.4 | 39.12% | 🇺🇸 USA |
 Juniper Networks
JNPR | 23.3 | 183.72% | 🇺🇸 USA |
 QUALCOMM QCOM | 11.6 | 41.71% | 🇺🇸 USA |
 Motorola Solutions
MSI | 34.6 | 321.06% | 🇺🇸 USA |
 Nokia NOK | 6.00 | -26.98% | 🇫🇮 Finland |
 Ciena CIEN | 42.2 | 413.97% | 🇺🇸 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.