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National Grid plc (NNGF.DE)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$16.61 - $32.49$22.89
Multi-Stage$27.01 - $29.65$28.30
Blended Fair Value$25.60
Current Price$10.82
Upside136.60%
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 Rate6.28%6.28%6.28%
Growth Rate1.24%2.24%3.24%
Fair Value$16.61$22.89$32.49
Upside / Downside53.53%111.59%200.26%

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 Rate6.28%6.28%6.28%
Growth Rate1.24%2.24%3.24%
Year 1 PV (M)2,948.692,977.823,006.94
Year 2 PV (M)3,062.483,123.283,184.67
Year 3 PV (M)3,158.873,253.403,349.79
Year 4 PV (M)3,239.243,369.133,502.88
Year 5 PV (M)3,304.903,471.373,644.49
PV of Terminal Value (M)106,693.56112,067.89117,656.64
Equity Value (M)122,407.74128,262.88134,345.41
Shares Outstanding (M)4,531.504,531.504,531.50
Fair Value$27.01$28.30$29.65
Upside / Downside149.65%161.60%174.00%

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