Why We Revised Nokia’s Price Estimate
Q1 2016 was the first quarter that Nokia reported its results as a combined entity with Alcatel-Lucent. Based on the updated structure, we revised our price estimate for the company. While our overall estimated valuation for the company has increased by 20%, the greater number of outstanding shares has resulted in a 15% reduction in our price estimate for Nokia’s stock. Below we outline the changes to our model:
- Forecast for the licensing segment revenue increased due to the inclusion of “group common and other” segment
- Wireless infrastructure market share increased with Alcatel-Lucent’s inclusion
- EBITDA margins and free cash flow projections lowered due to the addition of significant loss-making segment “group common and other” and relatively low margin Alcatel-Lucent wireless infrastructure segment
Have more questions about Nokia? See the links below:
- What Is Nokia’s Revenue & Net Income Breakdown In Terms of Different Segments?
- How Has Nokia’s Revenue & Cash Profit Composition Changed In The Last Five Years?
- By How Much Have Nokia’s Revenue & EBITDA Changed In The Last Five Years?
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