Published on 20 Aug 2023 on Simply Wall St. via Yahoo Finance
An Intrinsic Calculation For National Grid plc (LON:NG.) Suggests It's 24% Undervalued
Key Insights
The projected fair value for National Grid is UK£12.59 based on Dividend Discount ModelCurrent share price of UK£9.51 suggests National Grid is potentially 24% undervalued Analyst price target for NG. is UK£11.40 which is 9.5% below our fair value estimate
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 forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.