Intrinsic value of Nokia Corporation - NOK

Previous Close

$4.96

  Intrinsic Value

$16.84

stock screener

  Rating & Target

str. buy

+239%

Previous close

$4.96

 
Intrinsic value

$16.84

 
Up/down potential

+239%

 
Rating

str. buy

We calculate the intrinsic value of NOK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 27.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  11.70
  11.03
  10.43
  9.88
  9.40
  8.96
  8.56
  8.20
  7.88
  7.60
  7.34
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.91
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
Revenue, $m
  31,039
  34,463
  38,056
  41,818
  45,747
  49,844
  54,111
  58,551
  63,167
  67,965
  72,951
  78,132
  83,518
  89,116
  94,937
  100,994
  107,298
  113,861
  120,699
  127,827
  135,259
  143,014
  151,108
  159,561
  168,392
  177,621
  187,271
  197,364
  207,925
  218,977
Variable operating expenses, $m
  20,387
  22,514
  24,746
  27,083
  29,524
  32,069
  34,719
  37,477
  40,344
  43,325
  45,315
  48,534
  51,879
  55,356
  58,973
  62,735
  66,650
  70,728
  74,975
  79,403
  84,020
  88,836
  93,864
  99,115
  104,600
  110,334
  116,328
  122,598
  129,157
  136,023
Fixed operating expenses, $m
  9,066
  9,266
  9,469
  9,678
  9,891
  10,108
  10,331
  10,558
  10,790
  11,028
  11,270
  11,518
  11,772
  12,031
  12,295
  12,566
  12,842
  13,125
  13,413
  13,709
  14,010
  14,318
  14,633
  14,955
  15,284
  15,621
  15,964
  16,315
  16,674
  17,041
Total operating expenses, $m
  29,453
  31,780
  34,215
  36,761
  39,415
  42,177
  45,050
  48,035
  51,134
  54,353
  56,585
  60,052
  63,651
  67,387
  71,268
  75,301
  79,492
  83,853
  88,388
  93,112
  98,030
  103,154
  108,497
  114,070
  119,884
  125,955
  132,292
  138,913
  145,831
  153,064
Operating income, $m
  1,586
  2,683
  3,841
  5,057
  6,333
  7,667
  9,061
  10,516
  12,032
  13,613
  16,366
  18,080
  19,867
  21,729
  23,670
  25,693
  27,805
  30,009
  32,311
  34,716
  37,230
  39,859
  42,610
  45,491
  48,507
  51,667
  54,979
  58,451
  62,093
  65,913
EBITDA, $m
  4,437
  5,727
  7,086
  8,514
  10,010
  11,575
  13,209
  14,913
  16,689
  18,539
  20,465
  22,472
  24,561
  26,737
  29,005
  31,369
  33,835
  36,408
  39,094
  41,900
  44,831
  47,897
  51,103
  54,458
  57,971
  61,649
  65,504
  69,543
  73,778
  78,220
Interest expense (income), $m
  326
  262
  452
  651
  860
  1,079
  1,307
  1,545
  1,793
  2,051
  2,319
  2,598
  2,888
  3,189
  3,502
  3,827
  4,166
  4,518
  4,884
  5,266
  5,663
  6,077
  6,509
  6,960
  7,430
  7,921
  8,435
  8,971
  9,532
  10,118
  10,732
Earnings before tax, $m
  1,324
  2,231
  3,189
  4,197
  5,254
  6,360
  7,516
  8,723
  9,981
  11,293
  13,767
  15,193
  16,678
  18,227
  19,842
  21,528
  23,287
  25,125
  27,045
  29,053
  31,153
  33,350
  35,651
  38,060
  40,586
  43,232
  46,008
  48,920
  51,975
  55,181
Tax expense, $m
  358
  602
  861
  1,133
  1,419
  1,717
  2,029
  2,355
  2,695
  3,049
  3,717
  4,102
  4,503
  4,921
  5,357
  5,812
  6,288
  6,784
  7,302
  7,844
  8,411
  9,005
  9,626
  10,276
  10,958
  11,673
  12,422
  13,208
  14,033
  14,899
Net income, $m
  967
  1,629
  2,328
  3,064
  3,836
  4,643
  5,487
  6,368
  7,286
  8,244
  10,050
  11,091
  12,175
  13,306
  14,485
  15,715
  17,000
  18,341
  19,743
  21,208
  22,741
  24,346
  26,025
  27,784
  29,627
  31,560
  33,586
  35,711
  37,941
  40,282

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  55,034
  61,104
  67,476
  74,145
  81,112
  88,376
  95,942
  103,814
  111,998
  120,505
  129,346
  138,533
  148,081
  158,007
  168,329
  179,067
  190,244
  201,882
  214,006
  226,643
  239,822
  253,571
  267,922
  282,909
  298,567
  314,931
  332,041
  349,937
  368,661
  388,257
Adjusted assets (=assets-cash), $m
  55,034
  61,104
  67,476
  74,145
  81,112
  88,376
  95,942
  103,814
  111,998
  120,505
  129,346
  138,533
  148,081
  158,007
  168,329
  179,067
  190,244
  201,882
  214,006
  226,643
  239,822
  253,571
  267,922
  282,909
  298,567
  314,931
  332,041
  349,937
  368,661
  388,257
Revenue / Adjusted assets
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
  0.564
Average production assets, $m
  8,722
  9,684
  10,694
  11,751
  12,855
  14,006
  15,205
  16,453
  17,750
  19,098
  20,499
  21,955
  23,468
  25,042
  26,677
  28,379
  30,151
  31,995
  33,917
  35,919
  38,008
  40,187
  42,461
  44,837
  47,318
  49,912
  52,623
  55,459
  58,427
  61,533
Working capital, $m
  -1,211
  -1,344
  -1,484
  -1,631
  -1,784
  -1,944
  -2,110
  -2,283
  -2,464
  -2,651
  -2,845
  -3,047
  -3,257
  -3,476
  -3,703
  -3,939
  -4,185
  -4,441
  -4,707
  -4,985
  -5,275
  -5,578
  -5,893
  -6,223
  -6,567
  -6,927
  -7,304
  -7,697
  -8,109
  -8,540
Total debt, $m
  8,373
  12,058
  15,925
  19,974
  24,202
  28,612
  33,204
  37,982
  42,951
  48,114
  53,481
  59,057
  64,853
  70,878
  77,143
  83,661
  90,446
  97,510
  104,869
  112,540
  120,539
  128,885
  137,596
  146,694
  156,198
  166,131
  176,517
  187,379
  198,745
  210,640
Total liabilities, $m
  33,406
  37,090
  40,958
  45,006
  49,235
  53,644
  58,237
  63,015
  67,983
  73,147
  78,513
  84,089
  89,885
  95,910
  102,176
  108,694
  115,478
  122,542
  129,902
  137,572
  145,572
  153,917
  162,629
  171,726
  181,230
  191,163
  201,549
  212,412
  223,777
  235,672
Total equity, $m
  21,628
  24,014
  26,518
  29,139
  31,877
  34,732
  37,705
  40,799
  44,015
  47,359
  50,833
  54,443
  58,196
  62,097
  66,153
  70,373
  74,766
  79,340
  84,104
  89,071
  94,250
  99,653
  105,294
  111,183
  117,337
  123,768
  130,492
  137,525
  144,884
  152,585
Total liabilities and equity, $m
  55,034
  61,104
  67,476
  74,145
  81,112
  88,376
  95,942
  103,814
  111,998
  120,506
  129,346
  138,532
  148,081
  158,007
  168,329
  179,067
  190,244
  201,882
  214,006
  226,643
  239,822
  253,570
  267,923
  282,909
  298,567
  314,931
  332,041
  349,937
  368,661
  388,257
Debt-to-equity ratio
  0.390
  0.500
  0.600
  0.690
  0.760
  0.820
  0.880
  0.930
  0.980
  1.020
  1.050
  1.080
  1.110
  1.140
  1.170
  1.190
  1.210
  1.230
  1.250
  1.260
  1.280
  1.290
  1.310
  1.320
  1.330
  1.340
  1.350
  1.360
  1.370
  1.380
Adjusted equity ratio
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  967
  1,629
  2,328
  3,064
  3,836
  4,643
  5,487
  6,368
  7,286
  8,244
  10,050
  11,091
  12,175
  13,306
  14,485
  15,715
  17,000
  18,341
  19,743
  21,208
  22,741
  24,346
  26,025
  27,784
  29,627
  31,560
  33,586
  35,711
  37,941
  40,282
Depreciation, amort., depletion, $m
  2,851
  3,044
  3,245
  3,457
  3,678
  3,908
  4,148
  4,397
  4,657
  4,926
  4,100
  4,391
  4,694
  5,008
  5,335
  5,676
  6,030
  6,399
  6,783
  7,184
  7,602
  8,037
  8,492
  8,967
  9,464
  9,982
  10,525
  11,092
  11,685
  12,307
Funds from operations, $m
  3,818
  4,672
  5,574
  6,521
  7,513
  8,551
  9,635
  10,765
  11,943
  13,170
  14,150
  15,482
  16,869
  18,314
  19,820
  21,391
  23,030
  24,740
  26,526
  28,392
  30,343
  32,383
  34,517
  36,751
  39,091
  41,542
  44,111
  46,803
  49,627
  52,589
Change in working capital, $m
  -127
  -134
  -140
  -147
  -153
  -160
  -166
  -173
  -180
  -187
  -194
  -202
  -210
  -218
  -227
  -236
  -246
  -256
  -267
  -278
  -290
  -302
  -316
  -330
  -344
  -360
  -376
  -394
  -412
  -431
Cash from operations, $m
  3,944
  4,806
  5,714
  6,668
  7,666
  8,711
  9,801
  10,938
  12,123
  13,358
  14,345
  15,684
  17,079
  18,532
  20,047
  21,627
  23,276
  24,996
  26,793
  28,670
  30,633
  32,685
  34,833
  37,081
  39,435
  41,902
  44,487
  47,197
  50,039
  53,020
Maintenance CAPEX, $m
  -1,561
  -1,744
  -1,937
  -2,139
  -2,350
  -2,571
  -2,801
  -3,041
  -3,291
  -3,550
  -3,820
  -4,100
  -4,391
  -4,694
  -5,008
  -5,335
  -5,676
  -6,030
  -6,399
  -6,783
  -7,184
  -7,602
  -8,037
  -8,492
  -8,967
  -9,464
  -9,982
  -10,525
  -11,092
  -11,685
New CAPEX, $m
  -916
  -962
  -1,010
  -1,057
  -1,104
  -1,151
  -1,199
  -1,248
  -1,297
  -1,348
  -1,401
  -1,456
  -1,513
  -1,573
  -1,636
  -1,702
  -1,771
  -1,844
  -1,922
  -2,003
  -2,089
  -2,179
  -2,274
  -2,375
  -2,481
  -2,594
  -2,712
  -2,836
  -2,967
  -3,106
Cash from investing activities, $m
  -2,477
  -2,706
  -2,947
  -3,196
  -3,454
  -3,722
  -4,000
  -4,289
  -4,588
  -4,898
  -5,221
  -5,556
  -5,904
  -6,267
  -6,644
  -7,037
  -7,447
  -7,874
  -8,321
  -8,786
  -9,273
  -9,781
  -10,311
  -10,867
  -11,448
  -12,058
  -12,694
  -13,361
  -14,059
  -14,791
Free cash flow, $m
  1,467
  2,099
  2,767
  3,472
  4,212
  4,989
  5,801
  6,650
  7,535
  8,459
  9,124
  10,128
  11,174
  12,265
  13,403
  14,590
  15,829
  17,122
  18,472
  19,884
  21,360
  22,905
  24,521
  26,214
  27,987
  29,845
  31,793
  33,836
  35,979
  38,229
Issuance/(repayment) of debt, $m
  3,531
  3,685
  3,867
  4,048
  4,229
  4,410
  4,592
  4,778
  4,968
  5,164
  5,366
  5,576
  5,796
  6,025
  6,266
  6,518
  6,784
  7,064
  7,359
  7,671
  7,999
  8,346
  8,711
  9,097
  9,504
  9,933
  10,386
  10,863
  11,365
  11,895
Issuance/(repurchase) of shares, $m
  1,288
  757
  176
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  4,819
  4,442
  4,043
  4,048
  4,229
  4,410
  4,592
  4,778
  4,968
  5,164
  5,366
  5,576
  5,796
  6,025
  6,266
  6,518
  6,784
  7,064
  7,359
  7,671
  7,999
  8,346
  8,711
  9,097
  9,504
  9,933
  10,386
  10,863
  11,365
  11,895
Total cash flow (excl. dividends), $m
  6,286
  6,541
  6,810
  7,520
  8,441
  9,398
  10,393
  11,428
  12,504
  13,623
  14,490
  15,704
  16,970
  18,290
  19,669
  21,108
  22,613
  24,186
  25,832
  27,555
  29,360
  31,251
  33,232
  35,311
  37,491
  39,778
  42,179
  44,699
  47,345
  50,124
Retained Cash Flow (-), $m
  -2,255
  -2,386
  -2,504
  -2,621
  -2,738
  -2,855
  -2,973
  -3,094
  -3,217
  -3,343
  -3,474
  -3,610
  -3,752
  -3,901
  -4,057
  -4,220
  -4,392
  -4,574
  -4,765
  -4,966
  -5,179
  -5,403
  -5,640
  -5,890
  -6,153
  -6,431
  -6,724
  -7,033
  -7,358
  -7,701
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  4,031
  4,155
  4,306
  4,899
  5,703
  6,543
  7,420
  8,334
  9,287
  10,280
  11,016
  12,094
  13,218
  14,390
  15,612
  16,888
  18,220
  19,612
  21,067
  22,589
  24,181
  25,847
  27,592
  29,421
  31,337
  33,347
  35,454
  37,666
  39,986
  42,422
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,865
  3,804
  3,748
  4,034
  4,421
  4,749
  5,013
  5,209
  5,335
  5,389
  5,231
  5,161
  5,026
  4,831
  4,583
  4,292
  3,964
  3,612
  3,244
  2,870
  2,501
  2,145
  1,808
  1,498
  1,219
  973
  761
  583
  436
  319
Current shareholders' claim on cash, %
  95.6
  93.3
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8
  92.8

Nokia Oyj is a Finland-based company engaged in the network and Internet protocol (IP) infrastructure, software, and related services market. The Company's businesses include Nokia Networks and Nokia Technologies. The Company's segments include Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. The Ultra Broadband Networks segment comprises Mobile Networks and Fixed Networks operating segments. The IP Networks and Applications segment comprises IP/Optical Networks and Applications & Analytics operating segments. The Applications & Analytics operating segment offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, Internet of things (IoT), security, and analytics platforms that enable digital services providers and enterprises to accelerate and optimize their customer experience. The Company has Comptel Oyj among its subsidiaries.

FINANCIAL RATIOS  of  Nokia Corporation (NOK)

Valuation Ratios
P/E Ratio -35.1
Price to Sales 1.1
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow -18.5
Price to Free Cash Flow -13.9
Growth Rates
Sales Growth Rate 89%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 52%
Cap. Spend. - 3 Yr. Gr. Rate 3.2%
Financial Strength
Quick Ratio 16
Current Ratio 0
LT Debt to Equity 18.2%
Total Debt to Equity 21.2%
Interest Coverage -3
Management Effectiveness
Return On Assets -1.7%
Ret/ On Assets - 3 Yr. Avg. 9.8%
Return On Total Capital -4.1%
Ret/ On T. Cap. - 3 Yr. Avg. 14.8%
Return On Equity -5%
Return On Equity - 3 Yr. Avg. 22.2%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 35.9%
Gross Margin - 3 Yr. Avg. 40.9%
EBITDA Margin 2.3%
EBITDA Margin - 3 Yr. Avg. 10.6%
Operating Margin -4.7%
Oper. Margin - 3 Yr. Avg. 7%
Pre-Tax Margin -5.8%
Pre-Tax Margin - 3 Yr. Avg. 5%
Net Profit Margin -3.2%
Net Profit Margin - 3 Yr. Avg. 15.3%
Effective Tax Rate 33.4%
Eff/ Tax Rate - 3 Yr. Avg. -38.8%
Payout Ratio -197.9%

NOK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NOK stock intrinsic value calculation we used $27788 million for the last fiscal year's total revenue generated by Nokia Corporation. The default revenue input number comes from 0001 income statement of Nokia Corporation. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NOK stock valuation model: a) initial revenue growth rate of 11.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for NOK is calculated based on our internal credit rating of Nokia Corporation, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Nokia Corporation.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NOK stock the variable cost ratio is equal to 66.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $8871 million in the base year in the intrinsic value calculation for NOK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Nokia Corporation.

Corporate tax rate of 27% is the nominal tax rate for Nokia Corporation. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NOK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NOK are equal to 28.1%.

Life of production assets of 0 years is the average useful life of capital assets used in Nokia Corporation operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NOK is equal to -3.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $19373.3493397 million for Nokia Corporation - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 5591.549 million for Nokia Corporation is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Nokia Corporation at the current share price and the inputted number of shares is $27.7 billion.

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