Nokia: Valuation is modest with improved performance
Nokia ended the year with a strong earnings beat, and the turnaround that the company's strategy has been aiming for has been right on track for the past two years. The company's comparable operating profit has taken a leap from the previous level of around EUR 2 billion to over EUR 3 billion, while the quality of the result has improved due to reduced one-off items. Nokia's share valuation (2023e P/E 10x) looks low already considering the current performance, and with good execution of the strategy there is still room for earnings growth through both top-line growth and margin improvement.
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 Figures26.01.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 24,911.0 | 25,772.8 | 25,880.6 |
growth-% | 12.20 % | 3.46 % | 0.42 % |
EBIT (adj.) | 3,109.0 | 3,190.0 | 3,370.5 |
EBIT-% (adj.) | 12.48 % | 12.38 % | 13.02 % |
EPS (adj.) | 0.44 | 0.43 | 0.45 |
Dividend | 0.12 | 0.18 | 0.22 |
Dividend % | 2.77 % | 4.20 % | 5.14 % |
P/E (adj.) | 9.89 | 9.92 | 9.57 |
EV/EBITDA | 6.23 | 5.46 | 4.80 |