Nokia: Improved performance not fully reflected in the valuation
Nokia's Q1 result was strong and generally the company's comments dispelled at least our previous concerns about earnings development this year, which had grown due to the Russian invasion of Ukraine. In particular, the rate of the turnaround of Mobile Networks in Q1 was a positive surprise and Nokia's significant investments in improving the unit's competitiveness in the last 18 months are now delivering results. Overall, Nokia's share valuation is moderate and provides a good expected return for the next few years as the strategy progresses. However, in the short term, the generally sour stock market sentiment can hold back the upside potential in the multiples.
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Nokia
Nokia is a global telecommunications company. The company offers solutions in IP, broadband, digital health, and cloud-based systems. The customers are found in a broad base of markets and consist of large corporate customers, authorities, and private consumers. The business is established on a global level in all regions. Nokia was founded in 1865 and the head office is located in Esbo, Finland.
Read more on company pageKey Estimate Figures29.04.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 22,202.0 | 23,322.0 | 23,924.3 |
growth-% | 1.60 % | 5.04 % | 2.58 % |
EBIT (adj.) | 2,775.0 | 2,862.3 | 3,105.7 |
EBIT-% (adj.) | 12.50 % | 12.27 % | 12.98 % |
EPS (adj.) | 0.37 | 0.37 | 0.40 |
Dividend | 0.08 | 0.12 | 0.18 |
Dividend % | 1.44 % | 3.32 % | 4.98 % |
P/E (adj.) | 15.27 | 9.87 | 9.03 |
EV/EBITDA | 8.41 | 4.73 | 3.83 |