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Is Telefonaktiebolaget LM Ericsson (publ)(NASDAQ: ERIC), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) has been on the stock market since its IPO date on the 9/28/1989. Telefonaktiebolaget LM Ericsson (publ) is in the Communication Equipment industry and Technology sector. Average volume for Telefonaktiebolaget LM Ericsson (publ), is 3811.88, and so far today it has a volume of 1887100. Performance year to date since the 9/28/1989 is -24.71%.

To help you determine whether Telefonaktiebolaget LM Ericsson (publ) is undervalued the following values will help you decide. P/E is 14.2 and forward P/E is 11.95. PEG perhaps more useful shows that Telefonaktiebolaget LM Ericsson (publ) has a value for PEG of *TBA. P/S ratio is 0.83 and the P/B ratio is 1.42. The P/Cash and P/Free cash flow is 4.06 and *TBA respectively.

At the current price Telefonaktiebolaget LM Ericsson (publ) is trading at, 6.93 (-1.00% today), Telefonaktiebolaget LM Ericsson (publ) has a dividend yield of 6.64%, and this is covered by a payout ratio of 78.60%. Earnings per share (EPS) is 0.49, and this is looking to grow in the next year to 13.28% after growing 15.50% this past year. EPS growth quarter over quarter is -24.60%, and -10.80% for sales growth quarter over quarter.

The number of shares outstanding is 3342.87, and the number of shares float is 3022.59. The senior management bring insider ownership to 0.90%, and institutional ownership is at 8.70%. The float short is 0.62%, with the short ratio at a value of 4.9. Management has seen a return on assets of 4.90%, and also a return on investment of 9.10%.

The ability for Telefonaktiebolaget LM Ericsson (publ), to deal with debt, means it current ratio is 2, and quick ratio is 1.6. Long term debt/equity is 0.13 and total debt/equity is 0.2. In terms of margins, Telefonaktiebolaget LM Ericsson (publ) has a gross margin of 34.70%, with its operating margin at 9.30%, and Telefonaktiebolaget LM Ericsson (publ) has a profit margin of 5.70%.

The 52 week high is -31.61%, with 3.74% being its 52 week low. The 20 day simple moving average is -4.18% and the 200 day simple moving average is -15.20%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Peter Clarke

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