Calculating The Intrinsic Value Of National Grid plc (LON:NG.)

Published on 27 Jan 2024 on Simply Wall St. via Yahoo Finance

Calculating The Intrinsic Value Of National Grid plc (LON:NG.)

Key Insights

Using the Dividend Discount Model, National Grid fair value estimate is UK£12.73Current share price of UK£10.44 suggests National Grid is potentially trading close to its fair valueOur fair value estimate is 12% higher than National Grid's analyst price target of UK£11.39

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of National Grid plc (LON:NG.) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!

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Calculating The Intrinsic Value Of National Grid plc (LON:NG.)

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Calculating The Intrinsic Value Of National Grid plc (LON:NG.)