One-glance verdict
Within fair range
$8.76 our estimate vs market $9.14
Wall Street consensus: $14.97 (70.8% higher than our fair-value estimate)
4% above our estimate
Fundamentals snapshot
Nokia Oyj
NOK · NYQ · Technology · Communication Equipment
Current price
$9.14
52-week range
$5.45 - $17.45
Market cap
$51.17B
Balance sheet
Healthy
3.57x Stretched
Net cash $1.99B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 3.5% on equity, ahead of 16% of its peers.
- Risk Stock trades 142.1% above its 5-year average P/E.
- Risk Operating margin compressed from 10.3% to 7.9% over 3 years.
What this company does
Nokia Oyj
Nokia builds the behind-the-scenes equipment and software, like cell towers and fiber optic cables, that allow your phone and internet to work. The company makes most of its money selling this gear to mobile carriers who are building out new 5G networks. It also earns a significant amount by licensing its patents (exclusive rights to its technology) to other companies, like smartphone makers, which makes Nokia a key player in the global telecommunications system.
How the company got here
Nokia started in Finland way back in 1865, originally as a paper mill and later making rubber boots and tires. It eventually moved into electronics and, in the 1990s, decided to focus entirely on telecommunications, becoming the world's largest mobile phone maker. After struggling to keep up with the shift to smartphones, Nokia sold its phone business to Microsoft in 2014. This marked a major turning point, as the company reinvented itself to focus on the underlying equipment and technology that powers communication networks globally.
What it actually does
Today, Nokia is a behind-the-scenes builder of the modern digital world, providing the hardware and software for communication networks. Instead of the phones you hold, it makes the equipment that allows your phone to connect to the internet and make calls. Its customers are large communication service providers, big companies (enterprises), and governments that need to build and manage powerful, secure networks. Think of it as building the highways and traffic control systems for digital information to travel across.
Network Infrastructure
This is one of Nokia's two main businesses and is focused on the wired parts of the internet. It builds the systems that move massive amounts of data using light through fiber optic cables (Optical Networks) and directs that data to the right place (IP Networks). This division also creates the technology for high-speed internet to your home, like fiber broadband (Fixed Networks). Its customers are telecom companies and large data center operators who need to handle the explosion of traffic from video streaming and AI.
Mobile Infrastructure
This is Nokia's other core business, and it handles the wireless side of communication. It provides the radio antennas and other gear that create mobile networks like 4G and 5G, which your phone uses to connect. A very important part of this segment is also licensing its huge portfolio of patents (the exclusive rights to its inventions). Other companies that make phones and connected devices pay Nokia to use its foundational technology, which provides a steady stream of income.
What management is betting on now
Management's strategy is centered on what it calls the 'AI supercycle'—the idea that artificial intelligence will require much faster and more powerful networks. The company is focusing its efforts on building the next generation of network equipment that can handle the massive data demands of AI and cloud computing. This includes simplifying its own business structure to be more focused and leading the development of future technologies like 6G. The goal is to be the go-to provider for the critical infrastructure that will power the AI-driven economy.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $8.76 vs current price $9.14
Wall Street consensus is the average analyst price target: $14.97 (70.8% higher than our fair-value estimate).
Our most-likely fair value is $8.76 a share — about 4.1% away from today's price of $9.14, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $2.0B - more cash than debt. Interest coverage 3.6x.
Net debt
$-1.99B
Interest coverage
3.57x
Nokia Oyj's profit covers its interest bill about 3.6 times over.
Healthy
Worse cushion
Baseline
Better cushion
NOK
BASELINE
Nokia Oyj
Total debt $3.78B Interest coverage 3.57x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage 11.18x +213% vs NOK Carries about 3.1x more debt cushion than NOK.
Total debt $3.29B Interest coverage 3.39x -5% vs NOK Has roughly the same debt cushion as NOK.
Total debt $9.62B Interest coverage 8.22x +130% vs NOK Carries about 2.3x more debt cushion than NOK.
Total debt $20.32B Interest coverage 14.05x +294% vs NOK Carries about 3.9x more debt cushion than NOK.
Total debt $1.67B Interest coverage 24.60x +589% vs NOK Carries about 6.9x more debt cushion than NOK.
What you should know
The case for and against NOK
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 3.5% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 142.1% above its 5-year average P/E.
-
Operating margin compressed from 10.3% to 7.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
65.29x
Forward P/E
18.99x
P/B
2.15x
P/S
2.51x
EV/EBITDA
19.00x
PEG ratio
0.78x
Profitability
How much profit each dollar creates
Gross margin
45.5%
Operating margin
7.9%
Net margin
3.5%
ROE
3.5%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
1.50x
Quick ratio
1.22x
Total debt
$3.78B
Total cash
$5.77B
Growth
How the business has been compounding
Revenue TTM
$22.93B
Revenue 5Y CAGR
-5.8%
EPS TTM
0.14
EPS 5Y CAGR
-45.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.33B
Free CF TTM
$1.65B
FCF margin
7.2%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
117.3%
Last ex-div date
2026-07-28