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National Grid plc (NG) Fair Value & Analysis

Utilities · GB · Market cap 59.4B GBX

NG National Grid plc NG · LSE
Price£12.26
Fair Value£8.89
Upside-27.5%
Quality97/100
Evidence: High Range £6.67 – £12.44

Fair value as of: Jun 24, 2026

From 15 valuation models · updated 5 days ago

Fair value updated Jun 24, 2026 — revised from £7.43 to £8.89 (+19.7%) since Jun 23, 2026. Share price +4.9% over the past month.

Price vs Fair Value (12 months)

£13.33 £9.49 Fair Value £8.89 Jun 2025 Jun 2026

12‑month range £9.49 – £13.33 · fair‑value band £6.67 – £12.44 · the £12.26 price screens above the £8.89 fair value. As of Jun 24, 2026.

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Analysis

National Grid plc (NG) currently trades at £12.26, while our model-based Fair Value estimate is £8.89 — implying the stock looks roughly 27.5% overvalued today. We read business quality at 97/100 (high quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, National Grid plc generated revenue of £17.7B at a net margin of 18.3%. Revenue grew 2.0% year over year. It earns a return on equity of 8.4%. Net debt stands at £46.4B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 17.7B GBX
Revenue growth (YoY) +2.0%
Net margin 18.3%
Return on equity 8.4%
Free cash flow −3.8B GBX FY2026
P/E ratio 19.9
More key figures
Operating margin 32.6%
EPS (TTM) £0.6000
Dividend yield 4.1%
EPS growth (YoY) +14.4%
Net debt 46.4B GBX FY2026

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

National Grid plc engages in the transmission and distribution of electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission networks in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in east and west Midlands, Southwest of England, and South Wales. The New England segment provides electricity and gas supply and distribution, and high-voltage electricity transmission services in New England. The New York segment offers electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in th…

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

National Grid plc reported revenue of £17.7B in FY2026 versus £18.4B in FY2022, a compound −1.0%/yr. Reported net income was £3.2B in FY2026, compounding +8.3%/yr from FY2022.

Revenue −1.0%/yr
FY22 £18.4B
FY23 £21.7B
FY24 £19.9B
FY25 £18.4B
FY26 £17.7B
Net income +8.3%/yr
FY22 £2.4B
FY23 £7.8B
FY24 £2.3B
FY25 £2.9B
FY26 £3.2B

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Similar stocks

6 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $85.84 $29.63 -65%
The Southern Company SO $93.43 $58.74 -37%
Duke Energy Corporation DUK $125.04 $67.29 -46%
American Electric Power Company A1EP34 R$324.00 R$48.73 -85%
Dominion Energy, Inc D $66.50 $48.26 -27%
Entergy Corporation ETR $112.20 $39.57 -65%

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Frequently asked questions

Is National Grid plc (NG) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £8.89 versus a price of £12.26 — about −27% (overvalued). Model-based estimate, not financial advice.
What is the fair value of NG?
Our 21-model fair value for National Grid plc is £8.89 (as of Jun 24, 2026), built from audited fundamentals. The current price is £12.26.
What is the quality score of NG?
National Grid plc has a Quality Score of 97/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of National Grid plc (NG)?
National Grid plc reported trailing-twelve-month revenue of about £17.7B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of NG?
The net profit margin of National Grid plc is about 18.3%, meaning it keeps roughly 18.3% of revenue as net income. Based on the latest reported figures.
Does National Grid plc pay a dividend?
National Grid plc currently shows a dividend yield of about 4.10% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.