National Grid Valuation

Q: What is the Fair Price of NGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NGG (ARS35000) is trading above our estimate of [[fair value]] (ARS23081.1)

Is NGG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NGG (ARS35000) is trading above our estimate of fair value (ARS23081.1)

Significantly Below Fair Value: NGG is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NGG?

Key metric: As NGG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NGG. This is calculated by dividing NGG's market cap by their current earnings.
What is NGG's PE Ratio?
PE Ratio	28.2x
Earnings	UK£1.72b
Market Cap	UK£48.56b

NGG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	13.1x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does NGG's PE Ratio compare to its peers?

The above table shows the PE ratio for NGG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.6x
SRE Sempra	20.7x	8.3%	US$59.7b
D Dominion Energy	21.4x	10.9%	US$48.8b
PEG Public Service Enterprise Group	22.7x	4.2%	US$46.0b
TAQA Abu Dhabi National Energy Company PJSC	41.5x	n/a	د.إ318.2b
NGG National Grid	28.2x	15.5%	AR$48.6b

Price-To-Earnings vs Peers: NGG is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the peer average (26.6x).

Price to Earnings Ratio vs Industry

How does NGG's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NGG is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the Global Integrated Utilities industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is NGG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NGG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.2x
Fair PE Ratio	7x

Price-To-Earnings vs Fair Ratio: NGG is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the estimated Fair Price-To-Earnings Ratio (7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.