Telefonaktiebolaget L M Ericsson ADR (ERIC) is undervalued and Ubiquiti Inc (UI) is fairly valued.
Against our estimates of intrinsic value, ERIC trades at the wider discount: a margin of safety of +23%, against -0% for UI.
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 10.6x revenue multiple, adjusted for growth and margin, values the shares at $579.86; the price of $580.88 sits right on that value.
Leak Score 69/100 on 9 of 12 signals
| Metric | ERIC | UI |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $9.82 | $580.88 |
| Intrinsic value | $12.69 | $579.86 |
| Margin of safety | +23% | -0% |
| Leak Score | 100/100 (3/12) | 69/100 (9/12) |
| Market cap | $29.9B | $35.2B |
| Revenue growth, 5 years | -0.9% | 11.5% |
| Operating margin | 13.8% | 36.2% |
| Net margin | 10.8% | 29.3% |
| Return on equity | 26.3% | 91.1% |
| Debt to equity | 0.38 | 0.06 |
| P/E | 12.6x | 36.6x |
| Forward P/E | 14.9x | 29.7x |
| P/B | 3.0x | 24.4x |
| Dividend yield | 3.3% | 0.6% |