Ericsson Valuation Multiples

Ericsson Overview

About Ericsson

Ericsson provides telecom equipment and services that are primarily used to build and operate mobile networks. The firm divides its business into three segments: networks, cloud and software services, and enterprise. Wireless carriers have traditionally been the firm’s primary customers, but it is pushing to cater more to enterprises as well, as both try to take advantage of 5G capabilities and utilize “as-a-service” communications platforms. The company also licenses its patents to handset manufacturers.

Founded

1918

HQ

Employees

94.2K

Website

ericsson.com

Sectors

Telecom InfrastructureNetworking Hardware

Financials (LTM)

Revenue: $26B

EBITDA: $5B

EV

$38B

Valuation Multiples

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Ericsson Financials

Ericsson reported last 12-month revenue of $26B and EBITDA of $5B.

In the same LTM period, Ericsson generated $12B in gross profit, $5B in EBITDA, and $3B in net income.

Ericsson P&L

In the most recent fiscal year, Ericsson reported revenue of $26B and EBITDA of $5B.

Ericsson expects next 12-month revenue of XXX and NTM EBITDA of XXX

Ericsson Stock Performance

Ericsson has current market cap of $40B, and enterprise value of $38B.

Ericsson's stock price is $12.03.

Ericsson Valuation Multiples

Ericsson trades at 1.5x EV/Revenue multiple, and 7.7x EV/EBITDA.

Ericsson Financial Valuation Multiples

As of April 20, 2026, Ericsson has market cap of $40B and EV of $38B.

Equity research analysts estimate Ericsson's 2025E EV/Revenue multiple at XXX and 2025E EV/EBITDA multiple at XXX

Ericsson has a P/E ratio of 13.9x.

Ericsson Margins & Growth Rates

Ericsson's revenue in the last 12 month declined by (2%).

Ericsson's revenue per employee in the last FY averaged $0.3M, while opex per employee averaged $0.1M for the same period.

Ericsson's rule of 40 is 14% (metric relevant for SaaS companies only, counted as combined revenue growth rate and EBITDA margin).

Ericsson's rule of X is 11% (created by Bessemer, rule of X is another metric to measure SaaS companies, ~1.5x stronger vs. the traditional Rule of 40, counted as revenue growth rate multiplied by 2.5 plus EBITDA margin).

Ericsson Public Comps

See public comps and valuation multiples for other Telecom Infrastructure and Networking Hardware comps.

Ericsson M&A Activity

Ericsson acquired XXX companies to date.

Last acquisition by Ericsson was on XXXXXXXX, XXXXX. Ericsson acquired XXXXXXXX for XXX (EV/Revenue multiple of XXX).

Ericsson Investment Activity

Ericsson invested in XXX companies to date.

Ericsson made its latest investment on XXXXXXXX, XXXXX. Ericsson invested in XXXXXXXX for XXX (EV/Revenue multiple of XXX).