Latest Ratios: P/E Ratio 50.5x · EV/EBITDA 17.8x · 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 | $44.0B | $35.6B | $24.5B | $19.1B | $26.3B | $35.4B | $21.9B | $20.9B | $32.5B | $26.3B | $27.6B |
| Enterprise Value | $43.7B | $35.4B | $22.6B | $18.1B | $26.4B | $34.3B | $21.4B | $20.2B | $30.1B | $22.7B | $24.1B |
| P/E Ratio → | 50.52 | 58.82 | 19.26 | 28.50 | 6.19 | 21.45 | — | 1159.38 | — | — | — |
| P/S Ratio | 1.92 | 1.79 | 1.28 | 0.90 | 1.11 | 1.59 | 1.00 | 0.90 | 1.44 | 1.14 | 1.17 |
| P/B Ratio | 1.80 | 1.69 | 1.18 | 0.93 | 1.23 | 2.02 | 1.43 | 1.21 | 2.12 | 1.62 | 1.32 |
| P/FCF | 6352.05 | 24.30 | 12.13 | 28.73 | 30.14 | 17.12 | 17.14 | — | — | 21.75 | — |
| P/OCF | 19.06 | 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 | 17.80 | 18.60 | 8.69 | 7.06 | 7.36 | 10.55 | 10.60 | 9.42 | 21.55 | 14.15 | 48.88 |
| EV / EBIT | 50.16 | 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 | 2.0% | 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 | 2.0% | 1.7% | 5.2% | 3.5% | 16.2% | 4.7% | — | 0.1% | — | — | — |
| FCF Yield | 0.0% | 4.1% | 8.2% | 3.5% | 3.3% | 5.8% | 5.8% | — | — | 4.6% | — |
| Buyback Yield | 1.6% | 1.8% | 2.8% | 1.6% | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 3.0% | 0.8% |
| Total Shareholder Yield | 3.6% | 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 50.5x. The historical average is 36.3x. This places it at the 71th percentile of its historical range.
Nokia Oyj's current EV/EBITDA is 17.8x. 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 50.5x. This is at the 71th 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 2.01% 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
Persistently sub-4% returns on capital
Low P/B, Not Low Price, Defines Nokia
Nokia's 1.90x price-to-book sits far below Ericsson's 3.21x, yet its 66.06x trailing P/E versus Ericsson's 13.23x reflects collapsed earnings power rather than cheapness, per current market data—suggesting the conglomerate discount is real but anchored to depressed, not depressed-and-temporary, profitability.
The 22.81x forward P/E and 11.68x forward EV/EBITDA versus 66.06x trailing and 21.83x trailing imply the market is pricing a substantial earnings recovery, likely on Nokia Technologies licensing catch-ups and Network Infrastructure normalization. Given Q3 2026's 16.5% operating margin was driven by SG&A collapsing to $269.4M against a $664–880M historical range, as previously noted, that recovery assumption deserves skepticism. At a 3.1% ROIC, the 1.90x book multiple may still embed embedded goodwill rather than economic value creation.
Sub-4% ROIC Signals Capital Decay
Nokia's quarterly ROIC has not exceeded 3.1% across ten quarters and ROE printed 0.7% in Q3 2026, versus Ericsson's 18.0% ROE and 22.3% ROIC, based on current peer data—a gap that appears structural rather than cyclical given the persistence of sub-1% returns.
The ROE–ROIC convergence at near-zero levels indicates the shortfall is driven by the earnings numerator, not capital structure: a debt-to-equity ratio of 0.16 provides essentially no leverage amplification, so the ~$21.6B equity base is earning almost nothing. Cumulative ten-quarter net income of $1.73B against that equity base, alongside the retained earnings decline from $2.0B to $1.5B, suggests prior Alcatel-Lucent acquisition capital is not earning its carrying cost. Investors should treat the elevated goodwill impairment risk flagged in recent disclosures as a plausible recognition of this decaying return profile rather than a standalone event.
Working Capital Drags Worsen Sharply
Nokia's cash conversion cycle stretched to 103 days in Q3 2026 versus 63 days in Q4 2024, with DSO rising to 126 days from 82, per reported quarterly figures—implying customer payment terms and project phasing, not operating economics, now dominate working capital intensity.
Asset turnover of 0.14 sits roughly one-quarter of typical software-networking peers and reflects a $50B-plus revenue base funded by an asset base heavy in $6.1B of goodwill and volatile net PPE of $1.5–2.6B; that turnover rate mathematically caps achievable ROIC near single digits. The 37-day expansion in the cycle versus the Q4 seasonal norm appears consistent with the previously identified pattern of working capital swings dictating cash flow, and it helps explain the Q2 2026 FCF margin of -15.6%. DPO of 113 days shows Nokia is extracting supplier float, which may be masking rather than solving receivables sluggishness.
Fortress Debt Masked by Earnings Fatigue
A debt-to-equity ratio of 0.16 and D/EBITDA of 3.27x position Nokia comfortably relative to Cisco's 0.59x and HPE's 0.97x, based on peer data, yet the current ratio compressed from 1.68 to 1.46 as cash reserves fell 41% to roughly $4.1B over eight quarters.
Liquidity is adequate in solvency terms—the quick ratio of 1.18 and modest debt load imply no near-term refinancing risk, and interest coverage of 112.71x in Q4 2025 confirmed ample headroom before that data point went unavailable. The concern is trajectory rather than position: cash fell $2.9B while dividends and buybacks returned roughly $3.26B, meaning distributions have exceeded internally generated free cash of $2.37B and are being funded partly from the balance sheet. Under a stress scenario where a cyclical operator capex downturn combines with a $6.1B goodwill impairment, book value and dividend capacity would be pressured simultaneously, though reported debt service itself would remain manageable.
P/E Is the Wrong Lens Entirely
The trailing P/E of 66.06x is the ratio most commonly misapplied to Nokia, because lumpy multi-year patent settlements and recurring restructuring charges distort both the numerator and denominator, making a P/B-versus-ROIC spread or segment-level EV/EBITDA a materially more informative valuation framework.
What the P/E obscures is that Nokia's earnings are a hybrid of volatile hardware results and episodic Nokia Technologies licensing catch-ups, which can swing quarterly net margin from -3.3% in Q2 2024 to 13.7% in Q4 2024 without any change in operating economics. The more diagnostic construct is ROIC against invested capital: at 3.1% versus a presumably higher cost of capital, the market's apparent discount to Ericsson's 3.21x book multiple may be rational rather than a mispricing opportunity. A sum-of-the-parts EV/EBITDA, contrasting the Network Infrastructure and Technologies franchises against the commoditized Mobile Networks business, would better test the conglomerate-discount thesis than any consolidated earnings multiple.