Comparing Nokian and Ciena’s Valuation Levels
Ciena, which is almost a “pure-play” optical network peer, has experienced a very strong revaluation over the past year. The company is currently priced with a high revenue multiple (12.7x P/S). What if Nokia’s Optical Networks and IP Networks units were valued at the same multiple as Ciena?
- Combined revenue: €3,019 million + €2,594 million ≈ €5.6 billion
- 12.7x revenue multiple → ≈ €71 billion implicit value
- Divided by 5.74 billion shares → ≈ €12.4 per share (approx. $14.5)
That €12.4 level is reached by valuing only Nokia’s optical and IP businesses at Ciena’s level, and leaving the rest of Nokia (mobile networks, fixed networks, software, and patent and licensing business) completely without value.
The intention is not to claim that this would be a realistic fair value right today. The point is that if Nokia’s units targeting the data center and AI sectors are finally treated as growth businesses instead of traditional telecommunications, the current valuation level, despite the recent rise, may still be moderate.