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    Nokia Oyj (NOK) Dropped, So What Is Driving Attention Now?

    Simply Wall St·08/30/2026 08:20:57
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    Nokia Oyj event puts portfolio shift in focus

    Nokia Oyj (NOK) is reshaping its business by discontinuing its Fixed Wireless Access CPE operations and placing greater emphasis on software-led and AI-enabled networking applications with partners such as Google Cloud and Vodafone.

    Against this refocus toward software and AI networking, Nokia Oyj’s share price has shown strong momentum, with a year-to-date share price return of 56.84% and a 1-year total shareholder return of 140.67%. However, the 90-day share price return declined 37.17% after a recent 1-day drop of 3.59% from its latest close of US$10.21.

    Scan how Nokia Oyj compares to other potential AI infrastructure beneficiaries by reviewing the hand picked 56 AI infrastructure stocks in this space.

    Nokia Oyj’s sharp pullback over the past 90 days now sits against analyst targets and intrinsic estimates that still point higher. After this swing, where does a fair value range really land for the stock today?

    Price-to-Earnings of 72.3x: Is it justified?

    Nokia Oyj currently trades on a P/E of 72.3x, which pairs with the recent share price pullback to create a very different picture compared with the past year’s strong returns.

    The P/E ratio compares Nokia Oyj’s share price to its earnings per share and is a quick way to see how much investors are paying for current profits. A higher P/E often reflects expectations of faster earnings growth or a willingness to pay a higher price for a company’s position in its sector.

    For Nokia Oyj, the current P/E of 72.3x is materially higher than both the peer average of 57.1x and the wider US Communications industry average of 33.8x. It also sits above the estimated fair P/E of 48.4x that the fair ratio model indicates as a level the valuation could move toward if expectations cool. That gap suggests the market is paying a premium for Nokia Oyj’s earnings relative to both peers and its own statistically estimated fair multiple.

    Explore the SWS fair ratio for Nokia Oyj

    Result: Price-to-Earnings of 72.3x (OVERVALUED)

    However, Nokia Oyj still faces risks if demand for network upgrades slows or if partnerships around software and AI networking fail to translate into sustained profitability.

    Find out about the key risks to this Nokia Oyj narrative.

    Another view on Nokia Oyj’s value

    While Nokia Oyj screens as expensive on a 72.3x P/E, the SWS DCF model paints a different picture. On that basis, the stock at $10.21 sits below an estimated future cash flow value of $12.43, suggesting our cash flow view tilts toward undervalued. Which signal feels more compelling to you right now?

    Look into how the SWS DCF model arrives at its fair value.

    NOK Discounted Cash Flow as at Aug 2026
    NOK Discounted Cash Flow as at Aug 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nokia Oyj for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 45 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    With both enthusiasm and caution in the mix around Nokia Oyj, it makes sense to move quickly and test the data against your own expectations. To weigh the upside potential against the key concerns in a single view, start by reviewing the 2 key rewards and 3 important warning signs

    Looking for more investment ideas beyond Nokia Oyj?

    Do not stop with Nokia Oyj. Broaden your watchlist now so you are not looking back in a year wishing you had acted sooner.

    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.