NYSE
NGG
Last Price
US $82.87
KEY FIGURES
MKT CAP
$82.6B
EPS
TTM
$0.65
PEG
TTM
1.89x
P/E
TTM
18.87x
P/S
TTM
4.60x
YIELD
3.89%
GROWTH
Revenue Y/Y
-0.52%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $82.87
—
Default assumptions
EBITDA Multiple
Fair Value
Market $82.87
-91.40%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
National Grid plc cash flow to debt ratio of 13.55% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
National Grid plc's free cash flow has decreased 12.74% from $-3.39G last year to $-3.82G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
National Grid plc's debt to equity ratio is 1.19, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
National Grid plc's debt has decreased relative to shareholder equity from 1.26 last year to 1.19 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
National Grid plc has a net debt to EBITDA ratio of 5.91x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
National Grid plc's interest coverage ratio of 4.37 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
National Grid plc's profit margin has increased (16.04%) in the last year from 15.79% to 18.32%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
National Grid plc's short-term liabilities of $9.80G exceed its short-term assets of $7.49G, signaling financial risk
Decreasing performance - ROA.
National Grid plc's return on assets of 2.99% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
National Grid plc's return on equity of 8.47%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
National Grid plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
National Grid plc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
National Grid plc has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
National Grid plc has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
National Grid plc's yearly earnings has increased 13.50% since last year from $2.90G to $3.29G, signaling increasing performance
Decreasing performance - Healthy revenue growth.
National Grid plc's yearly revenue has decreased -2.19% since last year from $18.38G to $17.97G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 4.30% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Decreasing performance - 3-year revenue CAGR.
National Grid plc's 3-year revenue CAGR of -6.03% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
National Grid plc had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
National Grid plc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
National Grid plc has insufficient data to evaluate this check.
Overvalued - Earnings yield.
National Grid plc has an earnings yield of 0.79%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
National Grid plc is overvalued relative to its fair value price of 7.13 based on EBITDA multiple model
Undervalued - EV/EBITDA.
National Grid plc has an EV/EBITDA ratio of 13.92x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
National Grid plc has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
National Grid plc has a price-to-book ratio of 1.58x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
National Grid plc has a price-to-sales ratio of 3.50x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
8.58%
Return on equity
ROIC: 3.80%
Valuation History
21.6X
Price to Earnings
EV/EBITDA: 13.4X
Cash flow
Profit margin
4.08%
(FY vs FY)
Cash flow Y/Y
-36.87%
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $82.87
-63.96%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.