Discounted Cash Flow (DCF) Analysis Levered

Nokia Oyj (NOK)

$5.14

+0.05 (+0.98%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.04 | 5.14 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	23,147	22,563	23,315	21,852	22,202	21,987.56	21,775.20	21,564.89	21,356.60	21,150.33
Revenue (%)
Operating Cash Flow	1,811	360	390	1,759	2,626	1,361.89	1,348.74	1,335.71	1,322.81	1,310.03
Operating Cash Flow (%)
Capital Expenditure	-601	-672	-690	-479	-560	-582.61	-576.98	-571.41	-565.89	-560.42
Capital Expenditure (%)
Free Cash Flow	1,210	-312	-300	1,280	2,066	779.28	771.76	764.30	756.92	749.61

Weighted Average Cost Of Capital

Share price	$ 5.14
Beta	0.569
Diluted Shares Outstanding	5,612.42
Cost of Debt
Tax Rate	15.73
After-tax Cost of Debt	4.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.428
Total Debt	5,662
Total Equity	28,847.83
Total Capital	34,509.83
Debt Weighting	16.41
Equity Weighting	83.59
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	23,147	22,563	23,315	21,852	22,202	21,987.56	21,775.20	21,564.89	21,356.60	21,150.33
Operating Cash Flow	1,811	360	390	1,759	2,626	1,361.89	1,348.74	1,335.71	1,322.81	1,310.03
Capital Expenditure	-601	-672	-690	-479	-560	-582.61	-576.98	-571.41	-565.89	-560.42
Free Cash Flow	1,210	-312	-300	1,280	2,066	779.28	771.76	764.30	756.92	749.61
WACC
PV LFCF						740.55	696.95	655.91	617.29	580.95
SUM PV LFCF										3,291.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.23
Free cash flow (t + 1)	764.60
Terminal Value	23,671.89
Present Value of Terminal Value	18,345.73

Intrinsic Value

Enterprise Value	21,637.39
Net Debt	-1,029
Equity Value	22,666.39
Shares Outstanding	5,612.42
Equity Value Per Share	4.04