Telefonaktiebolaget L M Ericsson ADR (ERIC) is undervalued and Nokia Corp ADR (NOK) is overvalued.
Against our estimates of intrinsic value, ERIC trades at the wider discount: a margin of safety of +23%, against -152% for NOK.
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
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $4.30; the price of $10.82 is 152% above that value, and 71% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | ERIC | NOK |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $9.82 | $10.82 |
| Intrinsic value | $12.69 | $4.30 |
| Margin of safety | +23% | -152% |
| Leak Score | 100/100 (3/12) | 27/100 (3/12) |
| Market cap | $29.9B | $60.6B |
| Revenue growth, 5 years | -0.9% | -2.1% |
| Operating margin | 13.8% | 11.1% |
| Net margin | 10.8% | 3.4% |
| Return on equity | 26.3% | 3.5% |
| Debt to equity | 0.38 | 0.16 |
| P/E | 12.6x | 74.7x |
| Forward P/E | 14.9x | 23.3x |
| P/B | 3.0x | 2.5x |
| Dividend yield | 3.3% | 1.6% |