Anand: Many aspects of Nokia undervalued

Paras Anand of F&C believes in the value of Nokia despite the mobile phone manufacturer's recent lack of innovation

There has been little to entice investors in Nokia, which squandered its position in the mobile handset market due to slack innovation and poor execution for most of the last decade. Valuation tended to discount a rosy future, while others appeared to be taking full advantage of low entry barriers, Apple and RIM (BlackBerry) at the high end and the Korean manufacturers (LG, Samsung) at the low end. This begs the question, why bother? Nokia has a dividend yield of 6% and trades on EV/sales of roughly one-tenth of the valuation ascribed to Apple shares. It has 16% of the market cap in c...