Nokia Oyj (NYSE:NOK) continues to attract attention after its recent share price move, with the stock closing at $10.56 on 12 July 2026. Investors are weighing this level against the company’s broader return profile.

The recent move to a US$10.56 share price follows a mixed pattern, with a strong year to date share price return of 62.21% and a much higher 1 year total shareholder return of 159.16%. This suggests momentum has strengthened over time as investors reassess Nokia Oyj’s prospects and risks.

If Nokia Oyj’s recent run has you thinking about what else is moving in connected technologies, this could be a useful moment to scan 36 power grid technology and infrastructure stocks

Nokia Oyj’s business spans critical network infrastructure and 5G technologies, and the recent surge in returns puts that reach back in focus. The real test now is whether the current US$10.56 share price fairly reflects that strength.

Preferred Price to Earnings Multiple of 74.2x: Is it justified?

The current $10.56 share price for Nokia Oyj sits against a P/E of 74.2x, which is high compared with several reference points in the data.

The P/E multiple compares the share price with earnings per share. For a company like Nokia Oyj, which is in communications and network infrastructure, investors often watch this closely to understand how much they are paying for each unit of earnings.

Here, the data flags that Nokia Oyj looks expensive on this basis. The stock trades on a P/E of 74.2x compared with an estimated fair P/E of 48.3x, and also above the US Communications industry average P/E of 33.1x and a peer average of 51.3x. This suggests the market price is putting a higher value on Nokia Oyj’s earnings than either the industry or regression based estimates would imply. The fair ratio is a level the market could move towards if sentiment or expectations change.

Result: Preferred multiple of Price-to-Earnings of 74.2x (OVERVALUED)

However, Nokia Oyj’s high P/E and recent share price strength could face pressure if its revenue growth of 4.58% and net income growth of 29.97% slow.

Another View on Nokia Oyj’s Value

While Nokia Oyj appears expensive on a 74.2x P/E, our DCF model suggests a different perspective. With the stock at $10.56 and an estimated future cash flow value of $12.47, the DCF view indicates the shares trade at a 15.3% discount. Which signal do you pay more attention to?

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 51 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

The mix of strong recent returns and questions around valuation and cash flows can feel finely balanced, so it helps to test Nokia Oyj against your own expectations and risk tolerance. If you want to see both sides of that conversation in one place, take a closer look at the 2 key rewards and 3 important warning signs

Looking for more investment ideas beyond Nokia Oyj?

If Nokia Oyj has sharpened your focus on valuation and quality, do not stop here. Use this moment to line up your next set of watchlist candidates.

• Target resilient companies that aim to weather tough conditions by filtering for 88 resilient stocks with low risk scores that could help anchor your portfolio.
• Hunt for mispriced opportunities by scanning 51 high quality undervalued stocks that match your view on quality and potential upside.
• Strengthen your core holdings by focusing on balance sheet quality through the solid balance sheet and fundamentals stocks screener (49 results), so you are not caught off guard when conditions change.

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.