Nokia Oyj (NOK)
Valuation Overview•Is Nokia Oyj Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 50/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
NOK struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($252M) and minimal debt risk.
The company is facing top-line contraction (-5.8% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (4.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.5B | +3.5% | -5.8% | -1.9% | +4.7% | |
| EBITDA | $272.0M | — | -19.1% | — | — | |
| Net Income | $86.0M | -49.0% | -46.5% | — | -12.5% | |
| EPS (Diluted) | $0.02 | -52.2% | -47.3% | — | -15.9% | |
| Free Cash Flow | $629.0M | -30.4% | +17.2% | +1.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 44.1% | 43.4% | 42.5% | 39.8% |
| Operating Margin | 4.1% | 6.4% | 7.8% | 4.0% |
| Net Margin | 4.0% | 4.4% | 7.7% | 1.6% |
| FCF Margin | 7.3% | 6.9% | 6.7% | 3.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.06 | $0.06 | +0.0% | ||
| Q1'26 | $0.17 | $0.21 | +23.5% | ||
| Q4'25 | $0.06 | $0.07 | +16.7% | ||
| Q3'25 | $0.07 | $0.05 | -28.6% | ||
| Q2'25 | $0.05 | $0.03 | -40.0% | ||
| Q1'25 | $0.14 | $0.19 | +35.7% | ||
| Q4'24 | $0.07 | $0.07 | +0.0% | ||
| Q3'24 | $0.05 | $0.06 | +20.0% |
Total return is +164.1% (1Y), outperforming the benchmark by +139.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +108.5% | +99.2% | — |
| 1Y | +164.1% | +139.1% | +3.2% |
| 3YCAGR | +49.1% | +30.7% | +10.6% |
| 5YCAGR | +22.5% | +10.2% | +11.0% |
| 10YCAGR | +10.1% | -3.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Nokia Oyj (NOK) valuation, health, and returns.
Nokia Oyj is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -57.2% downside from DCF intrinsic value of $5.77)
Nokia Oyj has multiple valuation anchors: DCF Intrinsic Value: $5.77 | Peer Relative Fair Value: $5.86 | Wall Street Analyst Target: $17.50 (implying +29.7% upside). A convergence of these signals offers higher conviction.
Nokia Oyj displays fair financial health with a composite quality score of 50/100, supported by a Altman Z-Score of 3.4 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 3.0%.
Nokia Oyj pays a 1.1% dividend yield, covered by a 111% payout ratio with 3 years of growth, supplemented by a 0.9% buyback yield.
Nokia Oyj's current growth trajectory is Accelerating. The company achieved +3.5% 1Y revenue growth and -52.2% 1Y EPS growth, compared to its 3Y revenue CAGR of -5.8%.
Wall Street consensus is Buy based on 52 analysts, beating EPS expectations in 42% of recent quarters with a -1-quarter streak. The consensus price target represents a +29.7% change from current levels.
Investment risks for Nokia Oyj include: -24.5% 1-year max drawdown, high beta (1.40x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 1.40x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.