Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has been struggling to regain market share, especially through its Windows phones, and while the company has had some success, it isn’t out of the woods yet. A closer look at its market capitalization can give us some insight into its position and possibly even the cash flow problems that are likely contributing to the negative value investors may be placing on one of the company’s divisions.

Nokia

In its regulatory filings, Nokia lists three main operating divisions: Nokia Siemens Networks, Devices and Services, and NAVTEQ. In order to get a complete picture of the company’s present valuation, it is important to break down the individual valuations of the three divisions. Currently the company as a whole has a market capitalization of over $12 billion, although its effective net cash is closer to $4 billion.

ABG Sundal Collier did a closer study of the company’s balance sheets and placed valuations on each of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s divisions. The analysts valued Nokia Siemens Networks at around $8.5 billion and NAVTEQ at around $4.5 billion. That leaves the company’s Devices and Services unit valued at around negative $1 billion.

The analysts broke down Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s Devices and Services unit further to get at the real meaning behind the numbers. They put a value of approximately $5 billion on the company’s patent portfolio and almost $4 billion on its feature phones division. They also assigned a value of approximately $2.6 billion to Nokia’s smartphones division and point out that “the investment community” seems to believe that the company’s smartphones division actually subtracts about $10 billion from Nokia’s valuation.

With these numbers, Nokia’s stock price would have to more than double to meet its real potential market capitalization, according to ABG Sundal Collier.

Shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) climbed 1 percent on Tuesday, but Wednesday’s pre-market trades virtually erased that gain.