LSE · United Kingdom · Utilities - Regulated Electric

National Grid plc NG.L

Price £12.55Mkt cap 63,063 GBP mnReports in GBPData 2 Nov 2026

Value estimate · 50% DCF, 50% peers£12.80+2.0%+2.0% vs £12.55

DCF (base)£14.56+16.1% vs price · WACC 6.9%

Peers£11.113 peers · median EV/EBITDA 13.2x

Price implies5.8%revenue growth a year; your case 7.6%

Chance worth more64%of 2,000 simulated outcomes

Scenario

drives the result

Scenario probabilities (%)

BearBaseBull

Use the probability-weighted DCF instead of the live scenario

Forecast drivers

Base case, %

Driver	FY27E	FY28E	FY29E	FY30E	FY31E
Revenue growthFY23–FY26 avg -6.5%
EBIT marginFY23–FY26 avg 27.0%
Tax rateFY23–FY26 avg 24.2%
D&A % of revenueFY23–FY26 avg 11.4%
Capex % of revenueFY23–FY26 avg 44.9%
Working capital % of revenue changeFY23–FY26 avg –

Consensus revenue growth (12 analysts): 10.0% this fiscal year, 9.1% next (Yahoo Finance). The base case fades to 5.0% by year five; bear and bull sit 3 points of growth and 1.5 points of margin either side.

Discount rate

WACC build

GBP 10-year government bond yield (%)Estimate: US 10-year Treasury yield. Replace it with the GBP 10-year government bond yield.

Less: country default spread (%)0 when the bond above is default-free

Beta2 years, weekly vs FTSE 100: 0.70 (R² 0.16)

Equity risk premium (%)Damodaran country risk table (January 2026), United Kingdom, rating Aa3

Pre-tax cost of debt (%)starter: bond yield + 1.5 points

Terminal growth g (%)must stay below WACC

Risk-free rate: 4.93%
Cost of equity: 8.44%
Weight of equity: 57.4%
After-tax cost of debt: 4.85%
WACC: 6.91%

Result rules

set before you look

DCF weight (%)peers get 50%

Share price (GBP)Yahoo, 30 Oct 2026 (delayed)

Check before you rely on thisThe risk-free rate is an estimate for GBP: enter the local 10-year government bond yield.Debt is 74% of market value. If part of it funds a lending or finance arm (car makers, conglomerates), the DCF will understate equity value: check the bridge.

In plain English

The model's numbers as sentences. Every figure comes from the live data and your inputs, so the story changes when you change an input.

Priced for more growth than it has delivered

Caution
At today's price of £12.55, the market is pricing in revenue growth of about 5.8% a year for FY27E–FY31E, holding the rest of your base case. National Grid plc's revenue shrank 6.5% a year between FY23 and FY26, so the price asks for more than it has delivered.
Favourable
Your base case assumes 7.6% revenue growth a year on average, more than the price implies, and values the shares at £14.56, 16% above today's price.
Context
If your base case comes true, the whole business would return about 7.2% a year at today's price, about the same as the 6.9% a year the model requires (the WACC).
Caution
About 72% of today's price pays for future growth. The other 28%, £3.48 a share, is what FY26 operating profit after tax is worth if it never grows.
Favourable
Across 2,000 simulated futures around your base case, the middle 80% of values runs from £7.56 to £29.43 a share, and 64% of them are worth more than today's price.
Context
Business health grade C (60 out of 100): shows a mixed picture, with 3 strengths and 5 red flags (top concern: debt is high).

Educational, not investment advice. “Favourable” means the numbers lean in today's price's favour; “Caution” means the price asks a lot of the future.

Football field

Every valuation range side by side, against today's price and the value estimate. Per share, in GBP.

Show as table

Range	Low	Mid	High
DCF scenarios (bear to bull)	£10.60	£14.56	£19.53
DCF sensitivity (WACC and g ±1 point)	£6.36	£14.56	£39.93
Monte Carlo (middle 80% of 2,000 runs)	£7.56	£14.75	£29.43
EV/EBITDA comps (25th to 75th percentile)	£1.42	£9.71	£10.88
P/E comps (25th to 75th percentile)	£9.40	£12.52	£14.76
Analyst targets (15 analysts, low to high)	£10.60	£13.18	£15.00
52-week share price (trading range)	£10.97	–	£14.29

Business health

Is this a good, honest business, not just a cheap one? Published screens on the reported annual accounts (FY23–FY26), plus plain ratios. Screens, not verdicts: read the accounts before relying on any of them.

GradeC60 / 100

Grade C (60/100): shows a mixed picture, with 3 strengths and 5 red flags (top concern: debt is high).

Piotroski F-score6 / 9nine tests of strength

Altman Z''2.07Grey zone · safe above 2.60

Beneish M-score−2.63No flag · cut-off −1.78

Red flags 5

Debt is high: net debt is 5.5x EBITDA in FY26.
Owners are being diluted: the share count grew 7.5% a year over FY23–FY26 (shares issued for a merger or to repay debt count too).
Customers are paying more slowly: receivables rose from 44 to 64 days of sales between FY23 and FY26.
Low return on capital: ROCE was 5.8% in FY26, below 10%.
Low return for shareholders: ROE was 8.4% in FY26, below 10%.

Strengths 3

Profit is backed by cash: operations produced 175% of reported profit over 4 years.
Margins are widening: EBIT margin rose 9.6 points from FY23 to FY26.
The accounts don't match the manipulator pattern: Beneish M-score is −2.63, below the −1.78 cut-off.

Cash conversion Good175%Operating cash flow ÷ net profit, FY23–FY26. 90% or more means profit is backed by cash.

Return on capital (ROCE) Weak5.8%EBIT ÷ (total assets − current liabilities), FY26. 15% or more is strong.

Return on equity Weak8.4%Net profit ÷ average shareholders' equity, FY26. 15% or more is strong.

Interest cover Fair3.5xEBIT ÷ interest cost, FY26. 5x or more is comfortable; below 2x is risky.

Net debt ÷ EBITDA Weak5.5x(Borrowings − cash) ÷ (EBIT + D&A), FY26. 1.5x or less is comfortable; above 3.5x is heavy.

Receivable days Weak64 daysReceivables ÷ revenue × 365. Up from 44 days in FY23; a rise of more than 20 days is a warning.

Share count change Weak+7.5% a yearWeighted diluted shares, a year, FY23–FY26. Above 2% a year is heavy dilution; shares issued for mergers count too.

Paid out to shareholders Info40.0%Dividends and buybacks ÷ net profit, FY23–FY26. Neither high nor low is good on its own: it depends on how well the company could reinvest.

Stock-based pay Good0.3%Share-based pay ÷ revenue, FY26. Above 5% is a large hidden cost to owners.

Years of revenue growth Weak0 of 3Years in which revenue beat the year before, FY23–FY26.

EBIT margin trend Good+9.6 ptsFrom 22.5% in FY23 to 32.2% in FY26.

Piotroski's tests, one by one (6 passed of 9)

PASS
Made a profit Return on assets 3.0% in FY26
A company that loses money on its assets is using up its owners' capital.
PASS
Operations brought in cash Operating cash flow GBP 7,829 mn in FY26
Profit has to arrive as cash in the end, and cash flow is harder to dress up than profit.
PASS
Return on assets improved 3.04% vs FY25's 2.95%
Rising profitability is one of the clearest signs a business is getting stronger.
PASS
Cash from operations beat profit Cash GBP 7,829 mn vs profit GBP 3,241 mn
When cash lags profit, earnings may rest on generous accounting or customers who pay late.
PASS
Long-term debt fell relative to assets Long-term debt 39.2% of average assets vs FY25's 41.1%
More debt leaves less room for error when business slows.
FAIL
Short-term liquidity improved Current ratio 0.76 vs FY25's 1.35
More short-term assets per rupee of bills due within a year means less risk of a cash squeeze.
FAIL
No new shares issued Diluted shares +5.1% vs FY25
Issuing shares shrinks each owner's slice and can mean the company could not fund itself.
PASS
Gross margin improved Gross margin 79.8% vs FY25's 77.4%
A higher gross margin points to pricing power or falling costs.
FAIL
Assets worked harder (turnover up) Revenue ÷ assets 0.17x vs FY25's 0.19x
More sales from the same assets means the business uses its capital better.

F-score by year: FY24 5/9 · FY25 7/9

How the Altman and Beneish scores are built

Altman Z'' = 2.07 (grey)
Ratio	Value	Weight	Adds
Working capital ÷ total assets	-0.021	6.56	-0.14
Retained earnings ÷ total assets	0.387	3.26	1.26
Operating profit (EBIT) ÷ total assets	0.053	6.72	0.35
Book equity ÷ total liabilities	0.570	1.05	0.60

FY26 figures. Safe above 2.60, grey zone 1.10 to 2.60, distress below 1.10.

Z'' by year: FY23 1.96 · FY24 1.77 · FY25 2.37

Beneish M = -2.63
Index	Value	Manipulators	Others
Receivables growing faster than sales (DSRI)	1.053	1.465	1.031
Gross margin slipping (GMI)	0.971	1.193	1.014
More hard-to-value assets (AQI)	1.037	1.254	1.039
Sales growth (SGI)	0.962	1.607	1.134
Depreciation slowing (DEPI)	1.207	1.077	1.001
Overheads vs sales (SGAI) *	1.000	1.041	1.054
Profit not backed by cash, ÷ assets (TATA)	-0.042	0.031	0.018
Leverage rising (LVGI)	0.969	1.111	1.037

FY26 against FY25. Above −1.78 the pattern resembles companies later found to have manipulated earnings; some analysts use a stricter −2.22. SGAI was missing and set to the neutral 1.0. * Not in the data, so set to the neutral 1.0: SGAI.

How to read this

Piotroski F-score (Joseph Piotroski, 2000): nine pass-or-fail tests of profitability, debt, liquidity and efficiency, each comparing the latest year with the one before. 7 or more is strong; 3 or fewer is weak.

Altman Z'' (Edward Altman, 1995, the version for non-manufacturers and emerging markets): combines working capital, retained earnings, operating profit and book equity relative to the balance sheet. Above 2.60 is the safe zone, below 1.10 the distress zone.

Beneish M-score (Messod Beneish, 1999): eight ratios that, in his study, separated companies later found to have manipulated earnings. Above −1.78 resembles that pattern. It is a prompt to read the notes to the accounts, not an accusation.

Grade: a 0 to 100 blend (Piotroski 40%, Altman 20%, Beneish 15%, the ratios 25%, re-weighted when a part is missing): A from 80, B from 65, C from 50, D from 35, E below.

All three screens were built on US companies and annual accounts from Yahoo Finance, which can be incomplete. Lenders, insurers and holding companies get financial-firm ratios instead of the Altman and Beneish screens.

What analysts expect

Price targets and ratings from the brokers' analysts who cover the stock, as Yahoo collects them. Their opinion, not this app's; set against the model so you can see where you differ.

15 analysts' average 12-month target is £13.18, +5.1% against today's £12.55 (median £13.10). The range runs from £10.60 to £15.00.

Ratings this month: 8 buy, 6 hold, 2 sell; the average works out to "Buy" (2.4 on a 1 to 5 scale, 1 = strong buy).

Your value estimate of £12.80 is 3% below the analysts' average.

Targets are usually for 12 months ahead and tend to run optimistic; brokers that cover a company often do business with it. Counts and targets come from different updates, so they may not match exactly.

Risk and likely range

How much the shares have swung and how far they have fallen over five years. Risk repeats far more reliably than direction, so this is the honest kind of forecast: how far the price may move, not which way.

Loading five years of prices…

What the price implies

A reverse DCF: the constant revenue growth, or the constant EBIT margin, that makes the DCF equal today's price, holding everything else in your base case.

Implied revenue growth, a year5.8%Your base case averages 7.6%. The market expects less growth than you do.

Implied EBIT margin30.0%Your base case averages 32.2%; the last reported year was 32.2%.

What you'd earn at today's price

The yearly return on the whole business at today's price if your base case comes true, against the return the model requires and what a government bond pays.

Context

If your base case comes true, today's price earns about 7.2% a year, about the same as the 6.9% the model requires.

Expected returnif your base case comes true7.2%
Required return (WACC)what the model discounts at6.9%
Government bondwhat the GBP 10-year government bond pays4.9%

What the price pays for

Today's business, no growth28%£3.48 a share: earnings power value

Future growth72%£9.06 a share

Earnings yield5.1%£0.64 trailing EPS ÷ price

Free cash flow yield-1.7%FY27E forecast ÷ market value

10-year bond4.9%interest a year

Cost of equity8.4%what shareholders require

Favourable

Every £100 of share price buys £5.14 of today's profit a year, more than the £4.93 of interest the bond pays, though profit is less certain than interest.

How these are worked out

Expected return (an internal rate of return). Imagine buying the whole company at today's price: its shares and its debt, less its cash. The expected return is the yearly rate that makes the free cash flows in your base case, plus the value after FY31E growing at 3.0%, add up to exactly today's price. When it is above the WACC, the price sits below your DCF value. It only comes true if the forecast does.

Earnings power value. What the business is worth if its last reported operating profit never grows or shrinks (a simplified version of Bruce Greenwald's method). It treats depreciation as the spending needed to stand still, and uses reported rather than average profit, so one unusual year moves it.

FY26 operating profit (EBIT), GBP mn: 5,690
After tax at 24.2%: 4,313
Held flat for ever: ÷ WACC of 6.9%: 62,419
+ Cash − debt, leases, minorities and dividends since the balance sheet: -44,903
÷ Shares, per share: £3.48

Earnings yield is the profit a year you buy with each unit of price (the P/E turned upside down). Free cash flow yield is the same idea with next year's forecast cash flow.

Show as table

Measure	Value
Expected return (IRR), base case	7.2%
Required return (WACC)	6.9%
Expected minus required	+0.3 pts
Cost of equity	8.4%
10-year government bond	4.9%
Earnings power value per share	£3.48
Share of price paying for growth	72%
Earnings yield	5.1%
Free cash flow yield	-1.7%

Three scenarios

Revenue path for each scenario and its value per share with the same WACC and terminal growth.

Bear · 25%£10.60-15.5% vs price

Base · 50%£14.56+16.1% vs price

Bull · 25%£19.53+55.7% vs price

Probability-weighted£14.81+18.1% vs price

ReportedBearBaseBull

Show as table

Revenue, GBP mn	FY23	FY24	FY25	FY26	FY27E	FY28E	FY29E	FY30E	FY31E
Reported	21,659	19,850	18,378	17,687
Bear					18,925	20,080	21,023	21,738	22,173
Base					19,456	21,226	22,861	24,324	25,540
Bull					19,986	22,405	24,802	27,133	29,304

Monte Carlo

2,000 simulated futures around your base case. Each run shifts growth, margin, WACC and terminal growth at random using the spreads below (one standard deviation).

Growth spread (± pts)Margin spread (± pts)WACC spread (± pts)Terminal growth spread (± pts)

Worth more than the price64%of runs above £12.55

Median outcome£14.75+17.6% vs price

Downside (10th pct)£7.561 run in 10 is lower

Upside (90th pct)£29.431 run in 10 is higher

Runs below today's priceRuns above it

Free cash flow, base case

FCF = EBIT × (1 − tax) + D&A − capex − increase in working capital, discounted at the WACC from today to each fiscal year end.

Free cash flowPresent value

GBP mn	FY27E	FY28E	FY29E	FY30E	FY31E
Revenue	19,456	21,226	22,861	24,324	25,540
EBIT	6,265	6,835	7,361	7,832	8,224
NOPAT = EBIT × (1 − tax)	4,749	5,181	5,580	5,937	6,234
+ D&A	2,218	2,420	2,606	2,773	2,912
− Capex	7,782	7,068	6,081	4,816	3,346
− Increase in working capital	265	266	245	219	182
Free cash flow	-1,081	267	1,860	3,674	5,617
Present value	-1,052	243	1,583	2,925	4,183
Years to year end (t)	0.41	1.41	2.41	3.41	4.41

From cash flows to a share price

Enterprise value plus cash, minus debt, leases, minority interests and cash already returned to shareholders since the balance sheet, divided by the shares.

Present value of FCF: 7,883
Present value of terminal value: 110,205
Enterprise value: 118,088
+ Cash and short-term investments (31 Mar 2026): 2,828
− Borrowings: 45,862
− Lease liabilities: 893
− Minority interests: 31.0
− Dividends since the balance sheet: 945
Equity value: 73,185
÷ Shares outstanding: 5,026.91 mn
Value per share: £14.56

All amounts in GBP mn. Dividends with ex-dates after 2026-03-31: 2026-05-28 (0.32 per share); about 53 million shares issued since then, counted as cash raised at today's price.

Terminal value share of enterprise value93.3%Above 75%: most of the value comes after the forecast years.

Sensitivity: WACC against terminal growth

DCF value per share, base case. Blue cells sit above today's price, red cells below; the outlined cell is your current pair.

g ↓ · WACC →	5.91%	6.41%	6.91%	7.41%	7.91%
2.0%	£15.33	£12.32	£9.92	£7.98	£6.36
2.5%	£18.77	£14.94	£11.98	£9.63	£7.71
3.0%	£23.40	£18.33	£14.56	£11.65	£9.33
3.5%	£29.95	£22.88	£17.90	£14.19	£11.32
4.0%	£39.93	£29.33	£22.38	£17.47	£13.82

Peers

Found from Yahoo's related stocks in the same industry; multiples rebuilt here so currencies match. Untick a peer to drop it, or add your own.

Company	In median	EV/EBITDA	P/E	EV/Sales	P/B	Op. margin	Rev. growth
Centrica plc CNA.L Utilities - Independent Power Producers		1.3x	9.7x	0.3x	2.0x	25.9%	0.6%
SSE plc SSE.L Utilities - Diversified		14.9x	26.4x	4.0x	2.5x	23.2%	-2.1%
United Utilities Group PLC UU.L Utilities - Regulated Water		13.2x	19.4x	8.1x	4.7x	41.2%	22.9%
Median of included	3	13.2x	19.4x	4.0x	2.5x
National Grid plc	–	15.2x	19.5x	6.1x	1.6x	32.2%	-3.8%

Add a peer

Implied value per share	25th pct	Median	75th pct
EV/EBITDA × EBITDA + net cash	£1.42 (7.3x)	£9.71 (13.2x)	£10.88 (14.0x)
P/E × earnings per share	£9.40 (14.6x)	£12.52 (19.4x)	£14.76 (22.9x)
P/B × book value per share	£17.93 (2.3x)	£19.77 (2.5x)	£28.32 (3.6x)
EV/Sales × revenue + net cash (check only)	-£1.19 (2.1x)	£5.25 (4.0x)	£12.43 (6.0x)
Peer value (average of median EV/EBITDA and median P/E prices)		£11.11

Against its own past

Is today's multiple high or low for this stock? Its P/E (price ÷ earnings per share) or P/B (price ÷ book value per share) month by month, against the range it has traded in.

Loading ten years of monthly prices…

Pitch summary

Three pieces of evidence that lead to a view. The client summary button copies all of this as text.

1 · Margins+3 bpsEBIT margin change from the last reported year (32.2%) to FY31E (32.2%)

2 · Valuation vs peers+15.4%National Grid plc EV/EBITDA against the peer median; negative means cheaper

3 · Cash-1.7%FCF yield: FY27E free cash flow ÷ market value at today's price

National Grid plc (NG.L), valuation summary, 2 Nov 2026
Value estimate £12.80 (+2.0% vs today's price of £12.55).

• DCF (base case): £14.56 per share. WACC 6.91%, terminal growth 3.0%; terminal value is 93% of enterprise value.
• Peers: £11.11 per share (average of median EV/EBITDA and median P/E prices; 3 peers).
• Scenarios: bear £10.60, base £14.56, bull £19.53; probability-weighted £14.81.
• What the price implies: 5.8% revenue growth a year for FY27E–FY31E, against 7.6% in this forecast.
• Monte Carlo: 64% of 2,000 simulated outcomes are above today's price; middle 80% £7.56 to £29.43.
• Key assumptions (base): revenue growth 10.0% → 9.1% → 7.7% → 6.4% → 5.0%; EBIT margin 32.2% to 32.2%; tax 24.2%.
• Checks: to review: Terminal value is less than 85% of enterprise value.

Data: Yahoo Finance via yahoo-finance2 (unofficial; delayed prices), as of 2 Nov 2026. Educational model, not investment advice.

Model checks

6 pass, 1 to review.

PASSWACC is above terminal growth g
PASSThe DCF gives a positive value per share
PASSShares × price is within 2% of the reported market cap
PASSScenario values are in order: bear ≤ base ≤ bull
PASSAt least three peers are in the medians
CHECKTerminal value is less than 85% of enterprise valueMost of the value sits after year 5: check terminal growth and the year-5 margin.
PASSThe forecast starts after the last reported year

Company data

What the model uses, from Yahoo Finance via yahoo-finance2 (unofficial; delayed prices). Edit any number that looks wrong; your edits stay in this browser and are marked.

GBP mn	FY23	FY24	FY25	FY26	Avg ratio
Revenue					growth -6.5%
EBIT (operating profit)					margin 27.0%
D&A					11.4%
Profit before tax
Tax					rate 24.2%
Capex					44.9%
Increase in working capital					– of Δrev

Cash and short-term investments (GBP mn)
Borrowings (GBP mn)
Lease liabilities (GBP mn)
Minority interests (GBP mn)
Dividends since the balance sheet (GBP mn)

Revenue, trailing 12 months (GBP mn)
EBITDA, trailing 12 months (GBP mn)
Net income, trailing 12 months (GBP mn)
Shares outstanding (mn)

FY labels follow Indian fiscal years ending in March. Shares: 5,026,908,988. Price £12.55 at Fri, 30 Oct 2026 16:35:04 GMT.

Loading prices, five years of statements and peers…

The first visit to a stock takes a few seconds; repeat visits are cached.

Driver

FY27E

FY28E

FY29E

FY30E

FY31E

Revenue growthFY23–FY26 avg -6.5%

EBIT marginFY23–FY26 avg 27.0%

Tax rateFY23–FY26 avg 24.2%

D&A % of revenueFY23–FY26 avg 11.4%

Capex % of revenueFY23–FY26 avg 44.9%

Working capital % of revenue changeFY23–FY26 avg –

Range

Low

Mid

High

DCF scenarios (bear to bull)

£10.60

£14.56

£19.53

DCF sensitivity (WACC and g ±1 point)

£6.36

£14.56

£39.93

Monte Carlo (middle 80% of 2,000 runs)

£7.56

£14.75

£29.43

EV/EBITDA comps (25th to 75th percentile)

£1.42

£9.71

£10.88

P/E comps (25th to 75th percentile)

£9.40

£12.52

£14.76

Analyst targets (15 analysts, low to high)

£10.60

£13.18

£15.00

52-week share price (trading range)

£10.97

–

£14.29

Altman Z'' = 2.07 (grey)

Ratio

Value

Weight

Adds

Working capital ÷ total assets

-0.021

6.56

-0.14

Retained earnings ÷ total assets

0.387

3.26

1.26

Operating profit (EBIT) ÷ total assets

0.053

6.72

0.35

Book equity ÷ total liabilities

0.570

1.05

0.60

Beneish M = -2.63

Index

Value

Manipulators

Others

Receivables growing faster than sales (DSRI)

1.053

1.465

1.031

Gross margin slipping (GMI)

0.971

1.193

1.014

More hard-to-value assets (AQI)

1.037

1.254

1.039

Sales growth (SGI)

0.962

1.607

1.134

Depreciation slowing (DEPI)

1.207

1.077

1.001

Overheads vs sales (SGAI) *

1.000

1.041

1.054

Profit not backed by cash, ÷ assets (TATA)

-0.042

0.031

0.018

Leverage rising (LVGI)

0.969

1.111

1.037

Measure

Value

Expected return (IRR), base case

7.2%

Required return (WACC)

6.9%

Expected minus required

+0.3 pts

Cost of equity

8.4%

10-year government bond

4.9%

Earnings power value per share

£3.48

Share of price paying for growth

72%

Earnings yield

5.1%

Free cash flow yield

-1.7%

Revenue, GBP mn

FY23

FY24

FY25

FY26

FY27E

FY28E

FY29E

FY30E

FY31E

Reported

21,659

19,850

18,378

17,687

Bear

18,925

20,080

21,023

21,738

22,173

Base

19,456

21,226

22,861

24,324

25,540

Bull

19,986

22,405

24,802

27,133

29,304

GBP mn

FY27E

FY28E

FY29E

FY30E

FY31E

Revenue

19,456

21,226

22,861

24,324

25,540

EBIT

6,265

6,835

7,361

7,832

8,224

NOPAT = EBIT × (1 − tax)

4,749

5,181

5,580

5,937

6,234

+ D&A

2,218

2,420

2,606

2,773

2,912

− Capex

7,782

7,068

6,081

4,816

3,346

− Increase in working capital

265

266

245

219

182

Free cash flow

-1,081

267

1,860

3,674

5,617

Present value

-1,052

243

1,583

2,925

4,183

Years to year end (t)

0.41

1.41

2.41

3.41

4.41

g ↓ · WACC →

5.91%

6.41%

6.91%

7.41%

7.91%

2.0%

£15.33

£12.32

£9.92

£7.98

£6.36

2.5%

£18.77

£14.94

£11.98

£9.63

£7.71

3.0%

£23.40

£18.33

£14.56

£11.65

£9.33

3.5%

£29.95

£22.88

£17.90

£14.19

£11.32

4.0%

£39.93

£29.33

£22.38

£17.47

£13.82

Company

In median

EV/EBITDA

P/E

EV/Sales

P/B

Op. margin

Rev. growth

Centrica plc CNA.L

Utilities - Independent Power Producers

1.3x

9.7x

0.3x

2.0x

25.9%

0.6%

SSE plc SSE.L

Utilities - Diversified

14.9x

26.4x

4.0x

2.5x

23.2%

-2.1%

United Utilities Group PLC UU.L

Utilities - Regulated Water

13.2x

19.4x

8.1x

4.7x

41.2%

22.9%

Median of included

13.2x

19.4x

4.0x

2.5x

National Grid plc

–

15.2x

19.5x

6.1x

1.6x

32.2%

-3.8%

Implied value per share

25th pct

Median

75th pct

EV/EBITDA × EBITDA + net cash

£1.42 (7.3x)

£9.71 (13.2x)

£10.88 (14.0x)

P/E × earnings per share

£9.40 (14.6x)

£12.52 (19.4x)

£14.76 (22.9x)

P/B × book value per share

£17.93 (2.3x)

£19.77 (2.5x)

£28.32 (3.6x)

EV/Sales × revenue + net cash (check only)

-£1.19 (2.1x)

£5.25 (4.0x)

£12.43 (6.0x)

Peer value (average of median EV/EBITDA and median P/E prices)

£11.11

National Grid plc (NG.L), valuation summary, 2 Nov 2026 Value estimate £12.80 (+2.0% vs today's price of £12.55). • DCF (base case): £14.56 per share. WACC 6.91%, terminal growth 3.0%; terminal value is 93% of enterprise value. • Peers: £11.11 per share (average of median EV/EBITDA and median P/E prices; 3 peers). • Scenarios: bear £10.60, base £14.56, bull £19.53; probability-weighted £14.81. • What the price implies: 5.8% revenue growth a year for FY27E–FY31E, against 7.6% in this forecast. • Monte Carlo: 64% of 2,000 simulated outcomes are above today's price; middle 80% £7.56 to £29.43. • Key assumptions (base): revenue growth 10.0% → 9.1% → 7.7% → 6.4% → 5.0%; EBIT margin 32.2% to 32.2%; tax 24.2%. • Checks: to review: Terminal value is less than 85% of enterprise value. Data: Yahoo Finance via yahoo-finance2 (unofficial; delayed prices), as of 2 Nov 2026. Educational model, not investment advice.

GBP mn

FY23

FY24

FY25

FY26

Avg ratio

Revenue

growth -6.5%

EBIT (operating profit)

margin 27.0%

D&A

11.4%

Profit before tax

Tax

rate 24.2%

Capex

44.9%

Increase in working capital

– of Δrev