Nokia Corp. (NOK)

Free Cash Flow to Equity (FCFE)

Nokia Corp., FCFE calculation

USD $ in millions, translated from EUR €

12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Profit (loss) attributable to equity holders of the parent	(1,510)	2,455	1,277	5,551	10,521
(Profit) loss attributable to non-controlling interests	(420)	(673)	(904)	(138)	(670)
Net noncash charges	4,235	1,437	4,083	2,589	793
Change in net working capital	(828)	3,117	201	(3,544)	883
Net cash from operating activities	1,476	6,336	4,657	4,459	11,527
Capital expenditures	(775)	(901)	(761)	(1,237)	(1,044)
Proceeds from sale of fixed assets	62	28	143	75	105
Proceeds from long-term borrowings	1	640	5,591	994	168
Repayment of long-term borrowings	(66)	(8)	(300)	(47)	(23)
Proceeds from (repayment of) short-term borrowings	(77)	174	(4,073)	4,024	965
Free cash flow to equity (FCFE)	623	6,269	5,257	8,267	11,698

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Nokia Corp.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Nokia Corp.'s FCFE increased from 2009 to 2010 but then declined significantly from 2010 to 2011.

Nokia Corp., current P/FCFE

	Nokia Corp.	Technology
No. shares of common stock outstanding	3,744,956,052
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	623
FCFE per share	0.17
Current share price (P)	5.08
Ratio
P/FCFE	30.55	10.47

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Nokia Corp., P/FCFE calculation

	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
No. shares of common stock outstanding¹	3,744,956,052	3,744,956,052	3,744,956,052	3,800,948,552	3,982,811,957
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)²	623	6,269	5,257	8,267	11,698
FCFE per share⁴	0.17	1.67	1.40	2.17	2.94
Share price^1, 3	5.08	8.49	14.84	9.11	29.30
P/FCFE, Comparison to Industry
Nokia Corp.⁵	30.55	5.07	10.57	4.19	9.98
Industry, Technology	9.76	10.08	13.90	9.76	–

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Nokia Corp.'s Annual Report.

2011 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
622,729,636 ÷ 3,744,956,052 = 0.17

⁵ P/FCFE = Share price ÷ FCFE per share
= 5.08 ÷ 0.17 = 30.55

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Nokia Corp.'s P/FCFE ratio declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.