Intrinsic value of Nokia ADR - NOK

Previous Close

$5.76

  Intrinsic Value

$135.22

stock screener

  Rating & Target

str. buy

+999%

Previous close

$5.76

 
Intrinsic value

$135.22

 
Up/down potential

+999%

 
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 3.7

 

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
  34,462
  38,056
  41,817
  45,746
  49,843
  54,110
  58,550
  63,166
  67,964
  72,950
  78,131
  83,516
  89,114
  94,936
  100,992
  107,296
  113,859
  120,697
  127,825
  135,257
  143,011
  151,106
  159,558
  168,389
  177,618
  187,268
  197,361
  207,921
  218,973
Variable operating expenses, $m
  20,387
  22,514
  24,746
  27,082
  29,523
  32,068
  34,719
  37,476
  40,344
  43,324
  45,314
  48,533
  51,878
  55,355
  58,971
  62,734
  66,649
  70,726
  74,974
  79,401
  84,018
  88,835
  93,863
  99,113
  104,598
  110,331
  116,326
  122,595
  129,155
  136,020
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
  36,760
  39,414
  42,176
  45,050
  48,034
  51,134
  54,352
  56,584
  60,051
  63,650
  67,386
  71,266
  75,300
  79,491
  83,851
  88,387
  93,110
  98,028
  103,153
  108,496
  114,068
  119,882
  125,952
  132,290
  138,910
  145,829
  153,061
Operating income, $m
  1,585
  2,683
  3,840
  5,057
  6,333
  7,667
  9,061
  10,516
  12,032
  13,612
  16,365
  18,080
  19,867
  21,728
  23,669
  25,693
  27,804
  30,008
  32,310
  34,715
  37,229
  39,858
  42,610
  45,490
  48,506
  51,666
  54,978
  58,450
  62,092
  65,912
EBITDA, $m
  4,437
  5,726
  7,086
  8,514
  10,010
  11,575
  13,209
  14,913
  16,689
  18,539
  20,465
  22,471
  24,560
  26,737
  29,005
  31,369
  33,834
  36,407
  39,093
  41,899
  44,830
  47,896
  51,102
  54,457
  57,970
  61,648
  65,503
  69,542
  73,777
  78,218
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
  5,265
  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
  15,192
  16,678
  18,226
  19,842
  21,527
  23,287
  25,124
  27,045
  29,052
  31,152
  33,349
  35,650
  38,060
  40,585
  43,232
  46,007
  48,919
  51,974
  55,180
Tax expense, $m
  357
  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
  6,287
  6,784
  7,302
  7,844
  8,411
  9,004
  9,626
  10,276
  10,958
  11,673
  12,422
  13,208
  14,033
  14,899
Net income, $m
  966
  1,628
  2,328
  3,064
  3,835
  4,643
  5,487
  6,368
  7,286
  8,244
  10,050
  11,090
  12,175
  13,305
  14,485
  15,715
  16,999
  18,341
  19,743
  21,208
  22,741
  24,345
  26,025
  27,784
  29,627
  31,559
  33,585
  35,711
  37,941
  40,281

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
  55,033
  61,103
  67,474
  74,144
  81,110
  88,375
  95,940
  103,812
  111,996
  120,503
  129,344
  138,530
  148,078
  158,004
  168,326
  179,064
  190,241
  201,878
  214,002
  226,639
  239,817
  253,566
  267,918
  282,905
  298,562
  314,926
  332,035
  349,931
  368,654
  388,251
Adjusted assets (=assets-cash), $m
  55,033
  61,103
  67,474
  74,144
  81,110
  88,375
  95,940
  103,812
  111,996
  120,503
  129,344
  138,530
  148,078
  158,004
  168,326
  179,064
  190,241
  201,878
  214,002
  226,639
  239,817
  253,566
  267,918
  282,905
  298,562
  314,926
  332,035
  349,931
  368,654
  388,251
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
  16,452
  17,750
  19,098
  20,499
  21,955
  23,468
  25,041
  26,677
  28,379
  30,150
  31,994
  33,916
  35,919
  38,007
  40,186
  42,461
  44,836
  47,317
  49,911
  52,622
  55,458
  58,426
  61,531
Working capital, $m
  -1,211
  -1,344
  -1,484
  -1,631
  -1,784
  -1,944
  -2,110
  -2,283
  -2,463
  -2,651
  -2,845
  -3,047
  -3,257
  -3,475
  -3,702
  -3,939
  -4,185
  -4,441
  -4,707
  -4,985
  -5,275
  -5,577
  -5,893
  -6,223
  -6,567
  -6,927
  -7,303
  -7,697
  -8,109
  -8,540
Total debt, $m
  8,373
  12,057
  15,925
  19,973
  24,202
  28,611
  33,203
  37,981
  42,949
  48,113
  53,479
  59,055
  64,851
  70,876
  77,141
  83,660
  90,444
  97,508
  104,867
  112,538
  120,537
  128,882
  137,594
  146,691
  156,195
  166,128
  176,513
  187,376
  198,741
  210,636
Total liabilities, $m
  33,405
  37,090
  40,957
  45,005
  49,234
  53,643
  58,236
  63,014
  67,982
  73,146
  78,512
  84,088
  89,883
  95,908
  102,174
  108,692
  115,476
  122,540
  129,899
  137,570
  145,569
  153,915
  162,626
  171,723
  181,227
  191,160
  201,546
  212,408
  223,773
  235,668
Total equity, $m
  21,628
  24,014
  26,517
  29,139
  31,876
  34,731
  37,705
  40,798
  44,015
  47,358
  50,832
  54,442
  58,195
  62,096
  66,152
  70,372
  74,765
  79,338
  84,103
  89,069
  94,248
  99,652
  105,292
  111,181
  117,335
  123,766
  130,490
  137,523
  144,881
  152,582
Total liabilities and equity, $m
  55,033
  61,104
  67,474
  74,144
  81,110
  88,374
  95,941
  103,812
  111,997
  120,504
  129,344
  138,530
  148,078
  158,004
  168,326
  179,064
  190,241
  201,878
  214,002
  226,639
  239,817
  253,567
  267,918
  282,904
  298,562
  314,926
  332,036
  349,931
  368,654
  388,250
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
  966
  1,628
  2,328
  3,064
  3,835
  4,643
  5,487
  6,368
  7,286
  8,244
  10,050
  11,090
  12,175
  13,305
  14,485
  15,715
  16,999
  18,341
  19,743
  21,208
  22,741
  24,345
  26,025
  27,784
  29,627
  31,559
  33,585
  35,711
  37,941
  40,281
Depreciation, amort., depletion, $m
  2,851
  3,043
  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
  7,601
  8,037
  8,492
  8,967
  9,463
  9,982
  10,524
  11,092
  11,685
  12,306
Funds from operations, $m
  3,818
  4,672
  5,574
  6,521
  7,513
  8,551
  9,634
  10,765
  11,943
  13,170
  14,150
  15,481
  16,868
  18,314
  19,820
  21,391
  23,029
  24,740
  26,526
  28,392
  30,342
  32,382
  34,517
  36,751
  39,090
  41,541
  44,110
  46,802
  49,626
  52,588
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
  4,805
  5,714
  6,667
  7,666
  8,711
  9,801
  10,938
  12,123
  13,357
  14,344
  15,683
  17,078
  18,532
  20,047
  21,627
  23,275
  24,996
  26,792
  28,670
  30,632
  32,685
  34,832
  37,080
  39,435
  41,901
  44,486
  47,196
  50,038
  53,019
Maintenance CAPEX, $m
  -1,561
  -1,744
  -1,937
  -2,139
  -2,350
  -2,571
  -2,801
  -3,041
  -3,290
  -3,550
  -3,820
  -4,100
  -4,391
  -4,694
  -5,008
  -5,335
  -5,676
  -6,030
  -6,399
  -6,783
  -7,184
  -7,601
  -8,037
  -8,492
  -8,967
  -9,463
  -9,982
  -10,524
  -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
  -1,921
  -2,003
  -2,089
  -2,179
  -2,274
  -2,375
  -2,481
  -2,593
  -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
  -4,587
  -4,898
  -5,221
  -5,556
  -5,904
  -6,267
  -6,644
  -7,037
  -7,447
  -7,874
  -8,320
  -8,786
  -9,273
  -9,780
  -10,311
  -10,867
  -11,448
  -12,056
  -12,694
  -13,360
  -14,059
  -14,791
Free cash flow, $m
  1,467
  2,099
  2,767
  3,472
  4,212
  4,988
  5,801
  6,649
  7,535
  8,459
  9,124
  10,128
  11,174
  12,265
  13,403
  14,590
  15,828
  17,121
  18,472
  19,884
  21,360
  22,904
  24,521
  26,213
  27,986
  29,844
  31,792
  33,835
  35,979
  38,228
Issuance/(repayment) of debt, $m
  3,530
  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
  6,265
  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  
  4,818
  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
  6,265
  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
  6,285
  6,541
  6,810
  7,520
  8,441
  9,398
  10,393
  11,427
  12,503
  13,623
  14,490
  15,704
  16,970
  18,290
  19,668
  21,108
  22,612
  24,185
  25,831
  27,555
  29,359
  31,250
  33,232
  35,310
  37,490
  39,777
  42,178
  44,698
  47,344
  50,123
Retained Cash Flow (-), $m
  -2,255
  -2,386
  -2,504
  -2,621
  -2,738
  -2,855
  -2,973
  -3,093
  -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
  11,015
  12,094
  13,217
  14,389
  15,612
  16,888
  18,220
  19,612
  21,067
  22,588
  24,180
  25,847
  27,592
  29,420
  31,337
  33,346
  35,454
  37,665
  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
  3,864
  3,804
  3,748
  4,034
  4,420
  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, %
  91.3
  87.0
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1
  86.1

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 ADR (NOK)

Valuation Ratios
P/E Ratio -40.8
Price to Sales 1.3
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow -21.5
Price to Free Cash Flow -16.2
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 $27787.515006 million for the last fiscal year's total revenue generated by Nokia ADR. The default revenue input number comes from 0001 income statement of Nokia ADR. 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 ADR, 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 ADR.
    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 ADR.

Corporate tax rate of 27% is the nominal tax rate for Nokia ADR. 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 ADR 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 ADR - 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 646.581 million for Nokia ADR 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 ADR at the current share price and the inputted number of shares is $3.7 billion.

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COMPANY NEWS

▶ [$$] Nokia Signs Chinese Supply Deals   [03:42AM  The Wall Street Journal]
▶ Is Qualcomm Stock Ready for a Comeback?   [Nov-06-18 10:32AM  InvestorPlace]
▶ 8 Cheap Stocks That Are Leading the Blue Chips   [Nov-05-18 03:38PM  InvestorPlace]
▶ Changes in Nokia Corporation's own shares   [07:16AM  GlobeNewswire]
▶ BSNL selects Nokia for smart pole deployment across India   [Oct-26-18 05:31AM  GlobeNewswire]
▶ [$$] Nokia to Cut Thousands of Jobs Amid Shift to 5G   [Oct-25-18 07:51PM  The Wall Street Journal]
▶ Nokia Sticks to Its Full-Year Targets   [05:15PM  Motley Fool]
▶ [$$] Nokia Launches Fresh Cost Cuts   [08:28AM  The Wall Street Journal]
▶ Nokia: 3Q Earnings Snapshot   [05:06AM  Associated Press]
▶ Who Owns Most Of Nokia Corporation (HEL:NOKIA)?   [Sep-27-18 07:23AM  Simply Wall St.]
▶ Exclusive: Nokia signs big Sunnyvale lease in brand new office project   [Sep-25-18 09:07AM  American City Business Journals]
▶ Norway Is Ready for Higher Rates, Central Bank Governor Says   [Sep-20-18 10:33AM  Bloomberg Video]
▶ Nokia to lay off up to 500 workers in Naperville   [Sep-17-18 03:37PM  American City Business Journals]
▶ Changes in Nokia Corporation's own shares   [04:46AM  GlobeNewswire]
▶ BlackBerry Moves to Make Money From Its Patents   [Sep-14-18 07:00AM  Motley Fool]
▶ Morning Movers: Stocks Get a Lift From Inflation News   [Sep-13-18 09:50AM  Barrons.com]
▶ AT&T to roll out 5G in more cities amid investments in new tech   [Sep-10-18 01:28PM  American City Business Journals]
▶ 7 Stocks to Buy Amid Trade War Fears   [Aug-24-18 12:55PM  InvestorPlace]
▶ Calculating The Fair Value Of Nokia Corporation (HEL:NOKIA)   [Aug-22-18 07:07AM  Simply Wall St.]
▶ Nokia licensing rate expectations for 5G/NR mobile phones   [Aug-21-18 03:01AM  GlobeNewswire]
▶ This Nokia executive is working to make your calls more clear   [Aug-17-18 11:54AM  American City Business Journals]

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