Wondering if Nokia Oyj could be one of the market’s best value opportunities? You’re not alone. Many investors are watching this stock for its potential upside.
Shares have surged lately, jumping 9.9% in seven days, 41.4% over the past month, and delivering 38.3% gains over the last year. This has prompted more buzz around Nokia’s growth prospects.
Recent headlines highlight Nokia’s strategic expansion into 5G networks and key partnership announcements. These developments have sparked renewed optimism about its future direction. News of the company’s moves in North America and advances in network infrastructure have influenced investor sentiment in recent weeks.
But does the excitement stack up when we look at the numbers? Nokia Oyj currently scores 2 out of 6 on our value checks. Next, we’ll unpack what this means across different valuation models and discuss an even deeper way to think about value later in the article.
Nokia Oyj scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model estimates the value of a company by projecting its future free cash flows and discounting them back to today’s value. This approach calculates what a company is worth based on the amount of cash it is expected to generate in the future, expressed in today’s euros.
Nokia Oyj’s latest reported Free Cash Flow stands at €1.33 Billion. Analyst estimates forecast some growth in the coming years, projecting Free Cash Flow to reach €1.88 Billion in 2026 and €2.23 Billion by 2027. These analyst-driven forecasts continue through 2029, with Simply Wall St extrapolating further projections to provide a 10-year view. The model expects Free Cash Flow to moderate to €0.82 Billion by 2029 and gradually decline to €0.43 Billion in 2035, reflecting more cautious long-term expectations.
Based on these cash flow assumptions, the DCF analysis arrives at an intrinsic value of €2.00 per share. Comparing this to the current share price suggests Nokia Oyj is approximately 193.8% overvalued by this measure.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Nokia Oyj may be overvalued by 193.8%. Discover 840 undervalued stocks or create your own screener to find better value opportunities.
NOKIA Discounted Cash Flow as at Nov 2025
The Price-to-Earnings (PE) ratio is widely used to value profitable companies because it connects a company’s share price to its per-share earnings, offering a useful shorthand for how much investors are willing to pay for current profits. For companies like Nokia Oyj that consistently generate positive earnings, the PE ratio allows comparisons with both industry standards and past performance.
Story Continues
Growth expectations and business risks play a key role in what counts as a “normal” or “fair” PE ratio. Fast-growing or less risky companies may attract higher multiples, while slower growth or added risk tends to push that figure down. With this in mind, Nokia Oyj currently trades on a PE ratio of 37.48x. This figure is slightly above the broader Communications industry average of 35.21x but below the peer group average of 76.40x. This gives some context to its valuation in today’s market.
Simply Wall St’s proprietary “Fair Ratio” introduces another layer of analysis by modeling what Nokia’s PE multiple should be, given its growth outlook, profitability, risk profile, size, and industry dynamics. While peer and industry comparisons offer helpful benchmarks, the Fair Ratio is more comprehensive because it considers Nokia’s unique mix of business qualities rather than just surface-level averages.
Nokia’s Fair Ratio stands at 34.93x, which is just below its actual multiple of 37.48x. This suggests Nokia Oyj is trading slightly above a level justified by its fundamentals.
Result: ABOUT RIGHT
HLSE:NOKIA PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1414 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is more than just numbers; it is your unique story or perspective about a company’s future, capturing your assumptions about fair value, future revenue, earnings, and margins, and tying them directly to a financial forecast.
With Narratives, you can clearly connect what you believe about Nokia Oyj’s story to practical investing decisions. On Simply Wall St’s Community page, millions of investors use Narratives to summarize their outlook, set their own assumptions, and see how their view translates into a fair value estimate. Narratives make it easy to compare your fair value to the current market price, helping you decide whether to consider buying, holding, or selling.
Narratives are dynamic. They are automatically updated whenever new information surfaces, like breaking news or earnings reports, so your investment thesis stays relevant over time. For example, some investors believe Nokia’s innovations and global partnerships will fuel strong earnings growth and set a higher fair value of €5.75, while others focus on industry risks and project a more cautious value of €3.00. Both approaches are valid, depending on the underlying Narrative guiding the forecast.
Do you think there’s more to the story for Nokia Oyj? Head over to our Community to see what others are saying!
HLSE:NOKIA Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NOKIA.HE.
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