Is the National Grid share price expensive at 1,013p?

Is the National Grid share price expensive at 1,013p?

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National Grid (LON:NG.is a large cap energy company that provides electricity and gas to customers. It operates through three segments: UK Electricity Transmission, UK Gas Transmission and US Regulated.

Right now the National Grid share price is on the expensive side from a factor perspective, based on its Value Rank of 35. Let's see why this is.

A closer look at National Grid's Value Rank

We can see by using National Grid’s StockReport that the group has a:

  • Rolling price to book value of 1.86,
  • Trailing twelve month price to earnings ratio of 18.6
  • Trailing twelve month price to free cashflow of 379.6
  • Rolling dividend yield of 4.83%
  • Trailing twelve-month price to sales ratio of 2.37

This combination of financial traits suggests that National Grid stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.


What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with National Grid that you can find out about here.


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National Grid's StockRank™

NeutralConservative

National Grid's StockRank™

With a StockRank of 85, National Grid is more attractive than 85% of the 7,582 stocks we cover in Europe, according to our proprietary ranking system.

See the full StockReport

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