Regarding the current valuation of $Nokia Oyj(NOK.US), it can be summarized in the following three points:

1. Book value is severely distorted by "one-time charges"

Currently, major financial software shows Nokia's trailing price-to-earnings ratio (PE-TTM) is as high as over 100 times. This is not because its core business is unprofitable, but because the company recorded approximately €300 million in restructuring and layoff expenses in 2025, plus integration costs for Nokia Shanghai Bell, which significantly devoured the "book net profit" on the financial statements, shrinking the book earnings per share (EPS) to about €0.15. The sharp drop in the denominator directly pushed up the surface P/E ratio.

2. The real PE after excluding interference is around 50 times

If we exclude non-recurring expenses such as layoffs, restructuring, and intangible asset amortization, and only look at the real profitability of the main business. Nokia's "Comparable EPS" over the past 12 months was actually about €0.31 (approximately $0.336). Based on the current stock price of about $16.8, Nokia's real trailing price-to-earnings ratio (Comparable PE-TTM) is approximately 50 times.

3. The market logic behind the valuation

Reverting from "hundred times" to "50 times" shows that Nokia's actual valuation is not as exaggerated as it appears on the surface. However, the real PE of 50 times is still relatively high compared to its historical average (about 20 times), which mainly reflects the market's re-pricing of it: Nokia's recent quarterly report exceeded expectations, especially with a 49% surge in orders for optical network infrastructure from AI data centers and cloud service providers. The current valuation already incorporates the market's highly optimistic expectations for its transformation from a "traditional communication equipment provider" to an "AI infrastructure supplier".