National Grid Plc Stock Fundamentals

NNGF Stock  EUR 11.10  0.10  0.89%   
National Grid PLC fundamentals help investors to digest information that contributes to National Grid's financial success or failures. It also enables traders to predict the movement of National Stock. The fundamental analysis module provides a way to measure National Grid's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to National Grid stock.
  
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National Grid PLC Company Return On Equity Analysis

National Grid's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current National Grid Return On Equity

    
  0.13  
Most of National Grid's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, National Grid PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

Based on the latest financial disclosure, National Grid PLC has a Return On Equity of 0.1258. This is 97.84% lower than that of the Utilities sector and 99.68% lower than that of the Utilities - Diversified industry. The return on equity for all Germany stocks is 140.58% lower than that of the firm.

National Grid PLC Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining National Grid's current stock value. Our valuation model uses many indicators to compare National Grid value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across National Grid competition to find correlations between indicators driving National Grid's intrinsic value. More Info.
National Grid PLC is regarded fourth in return on equity category among its peers. It is regarded fifth in return on asset category among its peers reporting about  0.25  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for National Grid PLC is roughly  4.06 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the National Grid's earnings, one of the primary drivers of an investment's value.

National Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses National Grid's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of National Grid could also be used in its relative valuation, which is a method of valuing National Grid by comparing valuation metrics of similar companies.
National Grid is regarded second in return on equity category among its peers.

National Fundamentals

About National Grid Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze National Grid PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of National Grid using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of National Grid PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
National Grid plc transmits and distributes electricity and natural gas. The company was founded in 1990 and is headquartered in London, the United Kingdom. NATIONAL GRID is traded on Frankfurt Stock Exchange in Germany.

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Additional Information and Resources on Investing in National Stock

When determining whether National Grid PLC is a strong investment it is important to analyze National Grid's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact National Grid's future performance. For an informed investment choice regarding National Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in National Grid PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Please note, there is a significant difference between National Grid's value and its price as these two are different measures arrived at by different means. Investors typically determine if National Grid is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, National Grid's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.