KIANEWS Nokia shares are undervalued
12. 04. 2021 Monday / By: Robert Denes / Business / Exact time: BST / Print this page
No stock market trend is more popular than value investing, a strategy that has proven successful in all kinds of market environments. Value investors use basic analysis and traditional valuation metrics to find stocks that they think the market generally undervalues.
At the top of the Zacks Rank, investors can also check out our innovative Style Score system to find stocks with specific characteristics. Nokia (NOK) is a stock that many investors are looking at right now. NOK currently ranks the stock in No. 2 Zacks as well as Class A. Forward P / E ratio of the share 16.26. This compares to an industry average Forward P / E of 20.41. Over the past 52 weeks, NOK Forward P / E has been 29.52 and 10.35, with a median of 15.63.
Value investors also use the P / S ratio. The P / S ratio is calculated by dividing the price by sales. Some people prefer this indicator because it is more difficult to manipulate sales revenue in the income statement. This means it can be a more accurate performance indicator. The NOK P / S ratio is 0.9. This compares to an industry average of 1.67 P / S.
These are just some of the data that have been categorized as Nokia’s Excellent Value. Nevertheless, they help show that stocks are currently likely to be undervalued. If we add this to the strength of its earnings prospects, we can clearly see that NOK is currently an impressive value stock.
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