Is Nokia Oyj (NOK) Overvalued or Undervalued? A Complete Valuation Analysis 2026

The short answer

Short answer: Nokia Oyj looks overvalued at current levels. Compared with the recent share price of $12.35, the current DCF output near $7.33 suggests Nokia Oyj is about 68.6% overvalued on these cash flow assumptions. Nokia Oyj is being valued in the context of a business with gross margin near 44.2%, which helps show what kind of operating model investors are paying for. The fair answer depends on whether the business can keep converting its current position into enough earnings, growth, and cash flow to justify the market price.

Why valuing this kind of technology company is more complex than it looks

Nokia Oyj operates in Communication Equipment. Companies in this part of the market are usually valued on a mix of current earnings, expected growth, margin durability, and cash generation.

The reason this matters is simple. Two companies can show similar headline multiples and still deserve very different valuations because their margins, cash conversion, and growth durability are not the same.

The 5 key metrics applied to Nokia Oyj

A single ratio rarely tells the whole story. This framework starts with trailing P/E, forward P/E, PEG, EV/EBITDA, and price to sales, then keeps only the metrics that are present and usable for this company.

Trailing P/E

Trailing P/E compares the current share price with the last twelve months of earnings. For NOK, the current reading is 112.3x. Shows what the market is paying for NOK's recent earnings.

Forward P/E

Forward P/E uses expected earnings instead of trailing earnings. For NOK, the current reading is 211.0x. Shows how the market is valuing NOK's expected earnings.

EV/EBITDA

EV/EBITDA compares enterprise value with operating profit before depreciation and amortization. For NOK, the current reading is 11.7x. Adds a capital structure aware check on operating valuation.

Price to sales

Price to sales compares market value with revenue. For NOK, the current reading is 2.9x. Useful when revenue mix, margins, or future scaling matter as much as near term earnings.

Free cash flow yield

Free cash flow yield compares free cash flow with market value. For NOK, the current reading is 2.3%. Shows how much cash NOK is generating relative to its market value.

Metric	Current value	What it suggests
Trailing P/E	112.3x	Shows what the market is paying for NOK's recent earnings.
Forward P/E	211.0x	Shows how the market is valuing NOK's expected earnings.
EV/EBITDA	11.7x	Adds a capital structure aware check on operating valuation.
Price to sales	2.9x	Useful when revenue mix, margins, or future scaling matter as much as near term earnings.
Free cash flow yield	2.3%	Shows how much cash NOK is generating relative to its market value.
Gross margin	44.2%	Shows how much of NOK's revenue remains after direct costs.
Revenue growth	3.5%	Shows whether NOK's top line is still expanding.

The table is a snapshot of the current setup. It is meant to frame the valuation question, not replace the company specific analysis below.

Nokia Oyj's valuation breakdown

As of Q2 2026, Nokia Oyj traded near $12.35 with a market value near $66.70B.

Metric	Current value	What it suggests
Trailing P/E	112.3x	Shows what the market is paying for NOK's recent earnings.
Forward P/E	211.0x	Shows how the market is valuing NOK's expected earnings.
EV/EBITDA	11.7x	Adds a capital structure aware check on operating valuation.
Price to sales	2.9x	Useful when revenue mix, margins, or future scaling matter as much as near term earnings.
Free cash flow yield	2.3%	Shows how much cash NOK is generating relative to its market value.
Gross margin	44.2%	Shows how much of NOK's revenue remains after direct costs.
Revenue growth	3.5%	Shows whether NOK's top line is still expanding.

Metrics move with the market and with each earnings update. If a field is missing or stale, it is intentionally left out here rather than guessed.

What the numbers tell us

The first thing to notice with NOK is the gap between trailing and forward earnings valuation. Trailing P/E is near 112.3x while forward P/E is near 211.0x, which tells you the market is already underwriting a specific earnings path.

NOK's forward P/E is not offering much relief versus the trailing multiple, so the market may still be paying up before the earnings improvement is fully visible.
NOK's price to sales multiple near 2.9x needs to be read beside revenue growth near 3.5%, because rich revenue multiples only hold up when growth quality stays intact.
NOK's gross margin near 44.2% helps explain whether the market is dealing with a commodity style business or a business with stronger pricing power and business mix.

Nokia Oyj's competitive position

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide.

What would make Nokia Oyj look cheaper or more expensive?

What would make it look cheaper

NOK would look cheaper if the business kept growing while valuation multiples moved lower.
NOK would also look more attractive if cash generation improved without the market price rising at the same pace.

What would make it look expensive

NOK would look expensive if earnings or revenue expectations softened while the current multiple stayed elevated.
NOK would also look expensive if margins weakened but the stock kept the same quality premium.

Technology valuation context

Nokia Oyj operates in Communication Equipment. Companies in this part of the market are usually valued on a mix of current earnings, expected growth, margin durability, and cash generation.

The verdict

Nokia Oyj looks close to a market level that already reflects much of the current business strength. Future upside is more likely to come from better fundamentals than from simple multiple expansion. With forward P/E near 211.0x, the market is already making a judgment about the next stage of earnings power.

This is analysis of publicly available market data. It is not financial advice, and it should be read in the context of personal goals, risk tolerance, and time horizon.

Want to run the numbers yourself?

Use TopTier Strategy research tools to review NOK's live valuation profile, stock page, and related company analysis.

Analyze NOK on TopTier Strategy View NOK stock page

Frequently asked questions

Is Nokia Oyj stock overvalued in 2026?

Based on the current research read, Nokia Oyj looks overvalued in 2026. The main drivers in this read are trailing P/E near 112.3x and forward P/E near 211.0x, gross margin near 44.2%, free cash flow yield near 2.3%. Nokia Oyj is being valued in the context of a business with gross margin near 44.2%, which helps show what kind of operating model investors are paying for.

Is Nokia Oyj a good stock to buy right now?

Nokia Oyj can still work for investors who believe the next few years will be stronger than the market already expects, but the current setup leaves less room for disappointment.

What is Nokia Oyj's fair value?

A fair value estimate depends on the mix of earnings, growth, margins, and cash generation rather than on a single published number. For Nokia Oyj, the current read is shaped mainly by trailing P/E near 112.3x and forward P/E near 211.0x, gross margin near 44.2%, free cash flow yield near 2.3%. This article does not publish a stand alone fair value number unless there is a clearly supportable public methodology behind it.

Can you value Nokia Oyj just on P/E?

No. Nokia Oyj needs to be read through multiple valuation lenses, including forward earnings, revenue multiples, cash flow, and business quality.

Where can I analyze NOK with current data?

Use the TopTier Strategy research platform at toptierstrategy.com/research to review live valuation, profitability, financial health, shareholder returns, and growth data for NOK.

Data source: TopTier Strategy research platform - toptierstrategy.com/research. Data as of 2026-05-08T00:45:50.163663.