Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.32%, higher than industry average of 3.25%.

Growth Trajectory

Profitability

In the growth phase company makes 7.83% profit on every dollar of sales, lower than industry average of 10.03%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.89% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
19.27B EUR
Equity Value
21.17B EUR
FCF Yield
59.26%
Average ROIC
7.66%
Cost of Capital
8.07%
P/E Ratio
15.86x
Financial MetricMost Recent 12 months (EUR)Previous Year (EUR)
Revenues19.25B EUR19.22B EUR
Operating Income or EBIT1.61B EUR2.77B EUR
Interest Expense327M EUR327M EUR
Book Value Of Equity19.72B EUR20.66B EUR
Book Value Of Debt4.10B EUR4.75B EUR
Cash and Marketable Securities6.08B EUR8.91B EUR
Number of Shares Outstanding5.38B--
Minority interests90M EUR0 EUR
Current Stock Price3.90 EUR--
Effective Tax Rate18.00%--
Marginal Tax Rate20.00%--

Performance vs Industry

Revenue Growth
-3.11%
0.13%Company
vs
3.24%Industry
Below Industry
Operating Margin
-1.65%
8.38%Company
vs
10.03%Industry
Below Industry
Nokia Oyj faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
2.43%
Cost of Capital
6.66%
Return on Capital
6.65%
Reinvestment Rate
36.48%
Terminal value represents 63% of total enterprise value, based on 2.43% perpetual growth and 6.66% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 12.23B EUR Add
Present Value (Cash Flow Over Next 10 Years) 7.04B EUR Add
Value of Operating Assets 19.27B EUR Sub-total
Debt 4.09B EUR Subtract
Minority Interests 90.00M EUR Subtract
Cash 6.08B EUR Add
Value of Equity 21.17B EUR Sub-total
Number of Shares 5.38B shares Divisor
Estimated Value per Share (Fair Value) 3.93 EUR Total
Current Market Price 3.90 EUR Reference

Financial Projections

Total FCF Present Value
7.04B EUR
Avg Revenue Growth
3.79%
Avg Operating Margin
7.70%
Avg ROIC
7.66%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue19.99B EUR21.06B EUR22.18B EUR23.36B EUR24.60B EUR25.77B EUR26.85B EUR27.81B EUR28.65B EUR29.34B EUR30.05B EUR
Growth Rate 3.90% 5.32% 5.32% 5.32% 5.32% 4.74% 4.16% 3.58% 3.00% 2.43% 2.43%
PROFITABILITY
Operating Income1.67B EUR1.68B EUR1.73B EUR1.78B EUR1.83B EUR1.92B EUR2.00B EUR2.07B EUR2.13B EUR2.18B EUR2.24B EUR
Operating Margin 8.38% 8.01% 7.83% 7.64% 7.46% 7.46% 7.46% 7.46% 7.46% 7.46% 7.46%
EBIT (1-tax)1.37B EUR1.38B EUR1.42B EUR1.46B EUR1.50B EUR1.56B EUR1.62B EUR1.67B EUR1.71B EUR1.75B EUR1.79B EUR
CASH FLOW
Reinvestment476.47M EUR501.84M EUR528.57M EUR556.71M EUR522.60M EUR402.40M EUR360.92M EUR313.54M EUR260.83M EUR267.16M EUR654.63M EUR
Free Cash Flow898.61M EUR882.54M EUR895.88M EUR908.13M EUR982.90M EUR1.16B EUR1.26B EUR1.36B EUR1.45B EUR1.48B EUR1.13B EUR
Terminal Value--------------------26.93B EUR
Present Value825.27M EUR744.37M EUR693.94M EUR646.02M EUR642.15M EUR702.99M EUR706.09M EUR707.06M EUR705.98M EUR674.00M EUR—
EFFICIENCY
ROIC 7.75% 7.59% 7.60% 7.61% 7.60% 7.72% 7.84% 7.95% 8.02% 8.08% 6.65%
Cost of Capital 8.88% 8.88% 8.88% 8.88% 8.88% 8.44% 7.99% 7.55% 7.10% 6.65% 6.66%
Sales/Capital 2.23x 2.23x 2.23x 2.23x 2.23x 2.66x 2.66x 2.66x 2.66x 2.66x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (€B)
Reinvestment (€B)