Telefonaktiebolaget L M Ericsson ADR (ERIC) is undervalued and Motorola Solutions Inc (MSI) is undervalued.
Against our estimates of intrinsic value, MSI trades at the wider discount: a margin of safety of +24%, against +23% for ERIC.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $12.69; the price of $9.82 is 23% below that value, and 74% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $602.32; the price of $456.70 is 24% below that value.
Leak Score 90/100 on 9 of 12 signals
| Metric | ERIC | MSI |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $9.82 | $456.70 |
| Intrinsic value | $12.69 | $602.32 |
| Margin of safety | +23% | +24% |
| Leak Score | 100/100 (3/12) | 90/100 (9/12) |
| Market cap | $29.9B | $75.6B |
| Revenue growth, 5 years | -0.9% | 9.5% |
| Operating margin | 13.8% | 25.3% |
| Net margin | 10.8% | 17.4% |
| Return on equity | 26.3% | 92.0% |
| Debt to equity | 0.38 | 3.60 |
| P/E | 12.6x | 36.0x |
| Forward P/E | 14.9x | 23.8x |
| P/B | 3.0x | 28.3x |
| Dividend yield | 3.3% | 1.0% |