Nokia Corp Return On Equity vs. Price To Earning
| NOK Stock | USD 4.20 0.01 0.24% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.03238058 | Current Value 0.0308 | Quarterly Volatility 0.18996194 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.29 | 0.3903 |
|
|
For Nokia Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nokia Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nokia Corp ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nokia Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nokia Corp ADR over time as well as its relative position and ranking within its peers.
Nokia |
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nokia Corp. If investors know Nokia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nokia Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.506 | Dividend Share 0.13 | Earnings Share 0.17 | Revenue Per Share 3.591 | Quarterly Revenue Growth (0.08) |
The market value of Nokia Corp ADR is measured differently than its book value, which is the value of Nokia that is recorded on the company's balance sheet. Investors also form their own opinion of Nokia Corp's value that differs from its market value or its book value, called intrinsic value, which is Nokia Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nokia Corp's market value can be influenced by many factors that don't directly affect Nokia Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nokia Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nokia Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nokia Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Nokia Corp ADR Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nokia Corp's current stock value. Our valuation model uses many indicators to compare Nokia Corp value to that of its competitors to determine the firm's financial worth. Nokia Corp ADR is rated below average in return on equity category among its peers. It is rated below average in price to earning category among its peers reporting about 329.62 of Price To Earning per Return On Equity. At this time, Nokia Corp's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Nokia Corp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Nokia Price To Earning vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Nokia Corp |
| = | 0.0449 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Nokia Corp |
| = | 14.80 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Nokia Price To Earning Comparison
Nokia Corp is currently under evaluation in price to earning category among its peers.
Nokia Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nokia Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nokia Corp will eventually generate negative long term returns. The profitability progress is the general direction of Nokia Corp's change in net profit over the period of time. It can combine multiple indicators of Nokia Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 18.6 B | 19.5 B | |
| Operating Income | 1.7 B | 1.8 B | |
| Income Before Tax | 1.5 B | 1.7 B | |
| Total Other Income Expense Net | -189 M | -198.4 M | |
| Net Income | 679 M | 1.3 B | |
| Income Tax Expense | 825 M | 559.4 M | |
| Net Income Applicable To Common Shares | 3.8 B | 2 B | |
| Net Income From Continuing Ops | 3.9 B | 4.1 B | |
| Interest Income | 407 M | 272.6 M | |
| Net Interest Income | -158 M | -165.9 M | |
| Change To Netincome | -2.4 B | -2.3 B | |
| Net Income Per Share | 0.12 | 0.11 | |
| Income Quality | 1.94 | 1.70 | |
| Net Income Per E B T | 0.44 | 0.47 |
Nokia Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nokia Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nokia Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nokia Corp's important profitability drivers and their relationship over time.
Learn to be your own money manager
Our tools can tell you how much better you can do entering a position in Nokia Corp without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
Run Price Ceiling Movement Now
Price Ceiling MovementCalculate and plot Price Ceiling Movement for different equity instruments |
| All Next | Launch Module |
Use Investing Themes to Complement your Nokia Corp position
In addition to having Nokia Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Machinery Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
To fully project Nokia Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nokia Corp ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nokia Corp's income statement, its balance sheet, and the statement of cash flows.