Latest Ratios: P/E Ratio 86.8x · EV/EBITDA 29.0x · ROE 3.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $63.5B | $35.6B | $24.5B | $19.1B | $26.3B | $35.4B | $21.9B | $20.9B | $32.5B | $26.3B | $27.6B |
| Enterprise Value | $63.2B | $35.4B | $22.6B | $18.1B | $26.4B | $34.3B | $21.4B | $20.2B | $30.1B | $22.7B | $24.1B |
| P/E Ratio → | 86.76 | 58.82 | 19.26 | 28.50 | 6.19 | 21.45 | — | 1159.38 | — | — | — |
| P/S Ratio | 2.78 | 1.79 | 1.28 | 0.90 | 1.11 | 1.59 | 1.00 | 0.90 | 1.44 | 1.14 | 1.17 |
| P/B Ratio | 2.50 | 1.69 | 1.18 | 0.93 | 1.23 | 2.02 | 1.43 | 1.21 | 2.12 | 1.62 | 1.32 |
| P/FCF | 37.80 | 24.30 | 12.13 | 28.73 | 30.14 | 17.12 | 17.14 | — | — | 21.75 | — |
| P/OCF | 26.74 | 17.19 | 9.83 | 14.51 | 17.85 | 13.47 | 12.48 | 53.52 | 90.34 | 14.54 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.78 | 1.18 | 0.85 | 1.11 | 1.55 | 0.98 | 0.87 | 1.33 | 0.98 | 1.02 |
| EV / EBITDA | 29.00 | 18.60 | 8.69 | 7.06 | 7.36 | 10.55 | 10.60 | 9.42 | 21.55 | 14.15 | 48.88 |
| EV / EBIT | 70.49 | 31.17 | 9.36 | 9.91 | 11.03 | 16.10 | 21.67 | 43.16 | — | — | — |
| EV / FCF | — | 24.13 | 11.20 | 27.15 | 30.20 | 16.62 | 16.71 | — | — | 18.77 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.5% | 43.5% | 46.1% | 40.4% | 42.5% | 39.8% | 37.5% | 35.4% | 36.8% | 39.5% | 36.1% |
| Operating Margin | 3.9% | 3.9% | 8.3% | 7.0% | 10.3% | 9.7% | 4.0% | 2.1% | -0.3% | 0.1% | -4.7% |
| Net Profit Margin | 3.3% | 3.3% | 6.6% | 3.1% | 17.9% | 7.3% | -11.5% | 0.0% | -1.5% | -6.5% | -3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.1% | 3.1% | 6.2% | 3.2% | 21.9% | 9.9% | -15.5% | 0.0% | -2.1% | -8.0% | -4.9% |
| ROA | 1.7% | 1.7% | 3.2% | 1.6% | 10.2% | 3.7% | -5.5% | 0.0% | -0.8% | -3.5% | -2.3% |
| ROIC | 3.0% | 3.0% | 6.2% | 5.4% | 9.7% | 10.4% | 4.2% | 2.5% | -0.3% | 0.1% | -7.2% |
| ROCE | 2.8% | 2.8% | 5.6% | 5.0% | 8.4% | 7.2% | 2.7% | 1.7% | -0.2% | 0.1% | -4.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.25 | 0.25 | 0.23 | 0.25 | 0.26 | 0.32 | 0.52 | 0.34 | 0.25 | 0.23 | 0.19 |
| Debt / EBITDA | 2.74 | 2.74 | 1.82 | 2.03 | 1.54 | 1.74 | 3.93 | 2.78 | 2.74 | 2.34 | 8.15 |
| Net Debt / Equity | — | -0.01 | -0.09 | -0.05 | 0.00 | -0.06 | -0.04 | -0.04 | -0.16 | -0.22 | -0.17 |
| Net Debt / EBITDA | -0.13 | -0.13 | -0.72 | -0.41 | 0.01 | -0.32 | -0.28 | -0.32 | -1.75 | -2.24 | -7.02 |
| Debt / FCF | — | -0.17 | -0.93 | -1.57 | 0.06 | -0.50 | -0.43 | — | — | -2.98 | — |
| Interest Coverage | 5.18 | 5.18 | 6.71 | 6.00 | 8.84 | 7.58 | 4.05 | 1.75 | -0.28 | -0.00 | -3.05 |
Net cash position: cash ($5.5B) exceeds total debt ($5.2B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.58 | 1.58 | 1.58 | 1.66 | 1.59 | 1.62 | 1.55 | 1.39 | 1.29 | 1.55 | 1.64 |
| Quick Ratio | 1.36 | 1.36 | 1.39 | 1.41 | 1.33 | 1.42 | 1.36 | 1.15 | 1.07 | 1.34 | 1.44 |
| Cash Ratio | 0.64 | 0.64 | 0.78 | 0.75 | 0.72 | 0.79 | 0.69 | 0.50 | 0.50 | 0.67 | 0.76 |
| Asset Turnover | — | 0.53 | 0.49 | 0.53 | 0.55 | 0.55 | 0.47 | 0.51 | 0.57 | 0.56 | 0.53 |
| Inventory Turnover | 5.09 | 5.09 | 4.79 | 4.63 | 4.18 | 5.59 | 4.98 | 4.57 | 4.48 | 5.29 | 6.03 |
| Days Sales Outstanding | — | 125.11 | 127.96 | 119.85 | 103.72 | 111.22 | 140.42 | 119.95 | 113.64 | 112.15 | 109.20 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 2.1% | 3.0% | 3.2% | 1.3% | 0.0% | 0.7% | 2.7% | 3.3% | 3.7% | 5.5% |
| Payout Ratio | 116.6% | 116.6% | 56.6% | 91.9% | 8.3% | 0.6% | — | 8142.9% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.2% | 1.7% | 5.2% | 3.5% | 16.2% | 4.7% | — | 0.1% | — | — | — |
| FCF Yield | 2.6% | 4.1% | 8.2% | 3.5% | 3.3% | 5.8% | 5.8% | — | — | 4.6% | — |
| Buyback Yield | 1.1% | 1.8% | 2.8% | 1.6% | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 3.0% | 0.8% |
| Total Shareholder Yield | 2.6% | 3.9% | 5.7% | 4.8% | 2.5% | 0.0% | 0.7% | 2.7% | 3.3% | 6.7% | 6.3% |
| Shares Outstanding | — | $5.5B | $5.5B | $5.6B | $5.7B | $5.7B | $5.6B | $5.6B | $5.6B | $5.7B | $5.7B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NOK stock.
Nokia Oyj's current P/E ratio is 86.8x. The historical average is 36.3x. This places it at the 95th percentile of its historical range.
Nokia Oyj's current EV/EBITDA is 29.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
Nokia Oyj's return on equity (ROE) is 3.1%. The historical average is 15.4%.
Based on historical data, Nokia Oyj is trading at a P/E of 86.8x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Nokia Oyj's current dividend yield is 1.45% with a payout ratio of 116.6%.
Nokia Oyj has 43.5% gross margin and 3.9% operating margin.
Nokia Oyj's Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
North American RAN share loss
Margin Compression Masks Underlying Mix Shift
Gross margin slipped from 49.7% in Q1 2024 to 44.6% in Q2 2026, while operating margin turned negative at -1.0%, per reported quarterly data, indicating a mix shift toward lower-margin hardware.
The sustained decline in gross margin from the 49.7% peak in Q1 2024 to 44.6% in Q2 2026 suggests that the revenue mix is tilting toward lower-margin hardware, likely from Network Infrastructure and Mobile Networks, while the high-margin Technologies segment's contribution may be lumpy. Operating margin swung to -1.0% in Q2 2026, reflecting elevated R&D intensity (approximately 29% of revenue) and restructuring costs, which are absorbing the benefits of stable gross margins. This implies that Nokia's true earning power is better captured by gross margin trends adjusted for segment mix, as operating margins are heavily distorted by non-recurring items and ongoing investments.
Return on Capital Trapped in Single Digits
ROIC has remained below 2% for most of the past ten quarters, with Q2 2026 at -0.2%, while ROE averaged around 1%, according to reported figures, indicating a persistent failure to generate adequate returns on invested capital.
ROIC has oscillated between -0.2% and 1.9% over the last ten quarters, with the latest quarter at -0.2%, which is far below Nokia's cost of capital, suggesting that the company is not compounding shareholder value. ROE has similarly been weak, peaking at 4.0% in Q4 2024 but falling to 0.4% in Q2 2026, reflecting thin net margins and a high equity base relative to earnings. The low returns appear driven by margin pressure rather than asset inefficiency, as asset turnover has been stable around 0.11-0.17, implying that the issue lies in profitability, not capital deployment.
Working Capital Cycle Stretches as Collections Slow
Cash conversion cycle lengthened from 63 days in Q4 2024 to 100 days in Q2 2026, driven by DSO rising from 82 to 126 days, per reported quarterly data, indicating deteriorating working capital efficiency.
The cash conversion cycle has expanded from 63 days in Q4 2024 to 100 days in Q2 2026, primarily due to a sharp increase in days sales outstanding from 82 to 126 days, which suggests that customers are taking longer to pay, possibly reflecting weaker bargaining power or project delays. Days inventory outstanding has also risen from 63 to 87 days, while days payable outstanding has increased from 85 to 114 days, partially offsetting the DSO impact. This lengthening cycle implies that Nokia is tying up more cash in working capital, which may be a deliberate strategy to support customers during a downturn, but it also pressures free cash flow and may indicate a need for tighter receivables management.
Minimal Debt Masks Comfortable Coverage
Debt-to-equity fell to 0.16 in Q2 2026 from 0.25 in Q4 2025, while interest coverage was 112.7x in Q4 2025, per reported figures, indicating a fortress balance sheet with ample debt service capacity.
Nokia's debt-to-equity ratio has declined to 0.16 in Q2 2026, reflecting a reduction in total debt to $3.4B, which is minimal relative to equity of approximately $21B. Interest coverage was exceptionally high at 112.7x in Q4 2025, and while data is unavailable for other quarters, the low debt levels suggest that debt service is not a concern. This conservative leverage provides Nokia with significant financial flexibility to weather cyclical downturns or fund strategic investments, but it also implies that the company is not optimizing its capital structure to enhance returns, which may be a deliberate choice given the volatile earnings profile.
Liquidity Buffer Thinning but Still Adequate
Current ratio slipped from 1.68 in Q4 2024 to 1.51 in Q2 2026, while cash declined from $6.6B to $4.3B, per reported balance sheet data, indicating a reduced but still comfortable liquidity cushion.
The current ratio has declined from 1.68 in Q4 2024 to 1.51 in Q2 2026, and the quick ratio has similarly fallen from 1.39 to 1.23, suggesting that Nokia's ability to cover short-term obligations with liquid assets is weakening. Cash balances have decreased from $6.6B to $4.3B over the same period, partly due to the ASN divestiture and ongoing capital returns, but the company still holds a substantial cash buffer. Under a severe stress scenario, such as a prolonged downturn in operator capex, the current ratio could approach 1.0, but the low debt levels and access to credit markets likely provide additional support, though this is not explicitly disclosed.
P/E Misleads on Nokia's Earnings Power
Nokia's trailing P/E of 79.4x is distorted by depressed net income, while forward P/E of 29.7x and EV/EBITDA of 26.5x better reflect normalized earnings, per current valuation multiples, suggesting the market is pricing in a recovery.
The trailing P/E of 79.4x is misleading because Nokia's net income has been severely depressed by non-recurring items and restructuring charges, making the multiple appear excessively high. The forward P/E of 29.7x and EV/EBITDA of 26.5x provide a more accurate picture of the market's expectations for normalized earnings, but they still imply a premium relative to peers like Ericsson (EV/EBITDA 8.4x) and Cisco (25.4x). This suggests that investors are pricing in a significant margin recovery and growth in the Technologies segment, but the low ROIC and competitive pressures in RAN warrant caution. A more appropriate valuation metric for Nokia would be EV/EBIT adjusted for patent licensing income, as it captures the high-margin, cash-generative nature of the IP business without the volatility of net income.