Ericsson’s Stock Price: A Valuation Time Bomb?

Telefonaktiebolaget Lm Ericsson’s stock price has been on a wild ride, swinging between SEK 62.02 and SEK 97.62 over the past 52 weeks. As of May 30, 2025, the current price stands at SEK 82.64, but don’t be fooled by the recent uptick. The price-to-earnings ratio is a staggering 168.22, while the price-to-book ratio is a relatively modest 3.13.

This is a classic case of investors chasing momentum, ignoring the warning signs of a valuation multiple that’s off the charts. The fact that Ericsson’s stock has reached a 52-week high should be a red flag, not a green light. It’s time for investors to take a hard look at the numbers and ask themselves: is this stock really worth the hype?

Here are some key metrics that should give investors pause:

• Price-to-earnings ratio: 168.22 (way above the industry average)
• Price-to-book ratio: 3.13 (not as egregious, but still a concern)
• 52-week high: a potential sign of overvaluation

Don’t get caught up in the excitement of a rising stock price. It’s time to separate the hype from reality and take a closer look at Ericsson’s valuation. Is this stock a buy, or is it just a time bomb waiting to go off?