Latest Ratios: P/E Ratio 18.8x · EV/EBITDA 13.3x · ROE 8.5%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $82.7B | $84.1B | $62.1B | $55.1B | $54.4B | $60.5B | $46.6B | $44.1B | $41.3B | $42.7B | $52.2B |
| Enterprise Value | $144.8B | $130.5B | $108.4B | $101.6B | $97.2B | $105.8B | $77.7B | $74.8B | $69.8B | $69.0B | $79.7B |
| P/E Ratio → | 18.81 | 25.64 | 21.65 | 24.02 | 7.16 | 24.72 | 19.81 | 34.28 | 27.24 | 12.77 | 20.25 |
| P/S Ratio | 3.44 | 4.68 | 3.38 | 2.77 | 2.51 | 3.28 | 2.53 | 3.30 | 2.77 | 2.80 | 3.47 |
| P/B Ratio | 1.57 | 2.14 | 1.64 | 1.84 | 1.84 | 2.54 | 2.35 | 2.23 | 2.11 | 2.26 | 2.56 |
| P/FCF | — | — | — | — | — | — | — | — | — | 4117.43 | 40.21 |
| P/OCF | 9.75 | 13.28 | 11.77 | 9.76 | 9.76 | 10.71 | 12.97 | 11.26 | 11.65 | 12.08 | 11.02 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.26 | 5.90 | 5.12 | 4.49 | 5.73 | 4.21 | 5.60 | 4.67 | 4.52 | 5.30 |
| EV / EBITDA | 13.26 | 16.00 | 15.25 | 15.54 | 14.17 | 17.06 | 12.53 | 20.15 | 15.66 | 13.73 | 17.00 |
| EV / EBIT | 18.42 | 22.23 | 19.86 | 21.29 | 18.45 | 23.00 | 16.90 | 31.19 | 24.37 | 18.15 | 24.47 |
| EV / FCF | — | — | — | — | — | — | — | — | — | 6654.11 | 61.39 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.7% | 32.7% | 77.4% | 73.4% | 60.2% | 66.9% | 66.9% | 69.8% | 78.9% | 81.4% | 84.1% |
| Operating Margin | 32.7% | 32.7% | 26.8% | 22.5% | 22.5% | 23.7% | 23.7% | 17.1% | 19.2% | 22.9% | 21.3% |
| Net Profit Margin | 18.3% | 18.3% | 15.8% | 11.5% | 36.0% | 12.8% | 12.8% | 9.5% | 10.1% | 23.3% | 51.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.5% | 8.5% | 8.6% | 7.7% | 29.2% | 10.8% | 11.9% | 6.4% | 7.9% | 18.1% | 45.9% |
| ROA | 3.1% | 3.1% | 2.8% | 2.4% | 8.3% | 2.9% | 3.5% | 1.9% | 2.5% | 5.7% | 12.5% |
| ROIC | 5.2% | 5.2% | 4.6% | 4.5% | 5.2% | 5.5% | 6.5% | 3.5% | 4.6% | 5.6% | 5.5% |
| ROCE | 6.0% | 6.0% | 5.4% | 5.2% | 6.4% | 6.8% | 7.5% | 4.0% | 5.5% | 6.6% | 6.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.19 | 1.19 | 1.26 | 1.57 | 1.45 | 1.91 | 1.57 | 1.56 | 1.47 | 1.41 | 1.40 |
| Debt / EBITDA | 5.73 | 5.73 | 6.69 | 7.20 | 6.26 | 7.33 | 5.03 | 8.29 | 6.44 | 5.30 | 6.11 |
| Net Debt / Equity | — | 1.18 | 1.23 | 1.56 | 1.45 | 1.90 | 1.56 | 1.55 | 1.46 | 1.40 | 1.35 |
| Net Debt / EBITDA | 5.69 | 5.69 | 6.52 | 7.12 | 6.24 | 7.30 | 5.01 | 8.27 | 6.39 | 5.24 | 5.86 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | 2536.68 | 21.18 |
| Interest Coverage | 4.45 | 4.45 | 3.97 | 3.55 | 3.81 | 4.31 | 6.71 | 2.38 | 3.08 | 4.03 | 3.49 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.76 | 0.76 | 1.35 | 0.91 | 1.00 | 0.73 | 1.06 | 0.68 | 0.87 | 0.77 | 1.29 |
| Quick Ratio | 0.71 | 0.71 | 1.30 | 0.84 | 0.90 | 0.70 | 1.02 | 0.63 | 0.83 | 0.74 | 1.26 |
| Cash Ratio | 0.29 | 0.29 | 0.65 | 0.37 | 0.30 | 0.13 | 0.27 | 0.24 | 0.24 | 0.35 | 0.94 |
| Asset Turnover | — | 0.17 | 0.17 | 0.20 | 0.23 | 0.19 | 0.27 | 0.20 | 0.24 | 0.26 | 0.23 |
| Inventory Turnover | 21.65 | 21.65 | 7.45 | 6.37 | 9.84 | 11.93 | 17.57 | 9.70 | 8.51 | 10.59 | 7.95 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 2.0% | 2.4% | 3.1% | 2.9% | 1.6% | 2.9% | 2.1% | 2.8% | 9.9% | 2.9% |
| Payout Ratio | 50.1% | 50.1% | 51.9% | 75.1% | 20.1% | 40.8% | 56.7% | 72.5% | 76.9% | 119.1% | 19.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 3.9% | 4.6% | 4.2% | 14.0% | 4.0% | 5.0% | 2.9% | 3.7% | 7.8% | 4.9% |
| FCF Yield | — | — | — | — | — | — | — | — | — | 0.0% | 2.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 2.3% | 0.4% |
| Total Shareholder Yield | 2.7% | 2.0% | 2.4% | 3.1% | 2.9% | 1.6% | 2.9% | 2.1% | 2.8% | 12.2% | 3.3% |
| Shares Outstanding | — | $994M | $946M | $807M | $800M | $787M | $787M | $757M | $740M | $756M | $754M |
Capital intensity execution risk
According to recent market data, National Grid trades at a forward P/E of 18.21, which appears to reflect a premium valuation relative to traditional bond proxies, likely driven by the market's recognition of its unique role in the UK's long-term energy transition and infrastructure investment cycle.
The current valuation suggests that investors are pricing in durable RAV growth rather than mere yield-based returns. While the 2.6% dividend yield is modest for the sector, it appears to be a deliberate trade-off to retain capital for the £60 billion investment program, signaling that the market views NGG as a growth-oriented infrastructure play.
Based on reported figures, the 7.0% ROE in 2026Q4 highlights the ongoing challenge of aligning earned returns with regulatory expectations, as the company navigates the complex RIIO framework while simultaneously absorbing the impact of massive capital deployment into the regulated asset base.
The volatility in ROE, which dropped as low as 1.6% in 2026Q2, suggests that regulatory lag and the timing of asset commissioning create significant noise in reported profitability. Investors should monitor whether future regulatory resets provide sufficient headroom to compensate for the increased capital intensity and financing costs associated with the Great Grid Upgrade.
As indicated by the 2026Q4 debt-to-capital ratio of 0.54, National Grid maintains a highly leveraged balance sheet, a structural necessity that appears to be under constant pressure from the aggressive funding requirements of its multi-year capital expenditure plan and recent equity issuance.
The interest coverage ratio of 8.71 in 2026Q4 suggests that while the company remains capable of servicing its debt, the reliance on external capital markets remains elevated. The balance sheet appears to be operating near its capacity, warranting close observation of credit metrics as the company continues to execute its massive infrastructure pipeline.
According to financial statements, the dividend payout ratio of 27.7% in 2026Q4 indicates a conservative approach to cash distribution, which appears necessary to preserve internal liquidity for the company's substantial capital expenditure requirements during this period of intense infrastructure development.
The fluctuation in payout ratios, which reached as high as 144.9% in 2026Q2, suggests that management is prioritizing the funding of the Great Grid Upgrade over a high-yield dividend policy. This strategy may be interpreted as a commitment to long-term asset growth, though it places the burden of return generation squarely on capital appreciation rather than income.
The most commonly misapplied ratio for National Grid is the standard P/E multiple, which fails to account for the distortive effects of capitalized interest and regulatory timing differences that frequently obscure the underlying cash-generating capacity of the firm's regulated asset base.
Investors should instead focus on the relationship between RAV growth and the allowed WACC, as these metrics provide a more accurate reflection of the company's earnings power. Relying on P/E ignores the fact that utility earnings are often a function of regulatory accounting rather than organic growth, potentially leading to an inaccurate assessment of the company's true valuation.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NGG stock.
National Grid plc's current P/E ratio is 18.8x. The historical average is 23.3x. This places it at the 19th percentile of its historical range.
National Grid plc's current EV/EBITDA is 13.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.8x.
National Grid plc's return on equity (ROE) is 8.5%. The historical average is 31.7%.
Based on historical data, National Grid plc is trading at a P/E of 18.8x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
National Grid plc's current dividend yield is 2.67% with a payout ratio of 50.1%.
National Grid plc has 32.7% gross margin and 32.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
National Grid plc's Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.