Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

National Grid plc (NNGF.DE)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$20.78 - $48.70$30.54
Multi-Stage$39.28 - $43.17$41.18
Blended Fair Value$35.86
Current Price$10.82
Upside231.46%
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 Rate5.27%5.27%5.27%
Growth Rate1.24%2.24%3.24%
Fair Value$20.78$30.54$48.70
Upside / Downside92.09%182.29%350.11%

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 Rate5.27%5.27%5.27%
Growth Rate1.24%2.24%3.24%
Year 1 PV (M)2,977.013,006.413,035.82
Year 2 PV (M)3,121.593,183.563,246.14
Year 3 PV (M)3,250.753,348.033,447.23
Year 4 PV (M)3,365.473,500.423,639.39
Year 5 PV (M)3,466.673,641.293,822.88
PV of Terminal Value (M)161,797.66169,947.67178,422.84
Equity Value (M)177,979.15186,627.38195,614.30
Shares Outstanding (M)4,531.504,531.504,531.50
Fair Value$39.28$41.18$43.17
Upside / Downside262.99%280.63%298.96%

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