Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

National Grid plc (NNGF.DE)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$13.57 - $23.67$17.88
Multi-Stage$19.96 - $21.88$20.90
Blended Fair Value$19.39
Current Price$10.82
Upside79.23%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.380.350.200.310.200.260.990.320.30
YoY Growth---100.00%6.91%74.30%-34.75%58.41%-23.10%-74.15%206.70%9.42%5.19%
Dividend Yield--0.00%3.76%3.50%1.90%3.89%2.29%2.95%13.24%3.16%2.92%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,681.00
(-) Cash Dividends Paid (M)2,816.00
(=) Cash Retained (M)1,865.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)936.20585.13351.08
Cash Retained (M)1,865.001,865.001,865.00
(-) Cash Required (M)-936.20-585.13-351.08
(=) Excess Retained (M)928.801,279.881,513.93
(/) Shares Outstanding (M)4,531.504,531.504,531.50
(=) Excess Retained per Share0.200.280.33
LTM Dividend per Share0.620.620.62
(+) Excess Retained per Share0.200.280.33
(=) Adjusted Dividend0.830.900.96
WACC / Discount Rate7.41%7.41%7.41%
Growth Rate1.24%2.24%3.24%
Fair Value$13.57$17.88$23.67
Upside / Downside25.38%65.29%118.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,681.004,785.984,893.315,003.045,115.245,229.965,386.86
Payout Ratio60.16%66.13%72.09%78.06%84.03%90.00%92.50%
Projected Dividends (M)2,816.003,164.803,527.823,905.544,298.424,706.964,982.84

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.41%7.41%7.41%
Growth Rate1.24%2.24%3.24%
Year 1 PV (M)2,917.652,946.462,975.28
Year 2 PV (M)2,998.333,057.863,117.97
Year 3 PV (M)3,060.143,151.713,245.10
Year 4 PV (M)3,104.963,229.463,357.67
Year 5 PV (M)3,134.543,292.433,456.62
PV of Terminal Value (M)75,243.9679,034.1282,975.50
Equity Value (M)90,459.5894,712.0599,128.14
Shares Outstanding (M)4,531.504,531.504,531.50
Fair Value$19.96$20.90$21.88
Upside / Downside84.50%93.17%102.18%

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