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National Grid PLC
LSE:NG

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National Grid PLC
LSE:NG
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Price: 1 228.5 GBX -3.42% Market Closed
Market Cap: £61B

ROCE

5.5%
Current
Declining
by 0.4%
vs 3-y average of 5.9%

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
5.5%
=
EBIT
£5.2B
/
Avg Capital Employed
£93.7B

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
5.5%
=
EBIT
GBX5.2B
/
Avg Capital Employed
£93.7B

Peer Comparison

Country Company Market Cap ROCE
UK
National Grid PLC
LSE:NG
62.9B GBP
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US
Nextera Energy Inc
NYSE:NEE
186.4B USD
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ES
Iberdrola SA
MAD:IBE
123.5B EUR
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US
Southern Co
NYSE:SO
102.6B USD
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US
Duke Energy Corp
NYSE:DUK
98.7B USD
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FR
Engie SA
PAR:ENGI
65B EUR
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DE
E.ON SE
XETRA:EOAN
48.5B EUR
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DE
RWE AG
XETRA:RWE
40.1B EUR
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UK
SSE PLC
LSE:SSE
29.7B GBP
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US
Sempra Energy
NYSE:SRE
59.9B USD
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US
Dominion Energy Inc
NYSE:D
52.2B USD
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Market Distribution

Higher than 95% of companies in United Kingdom
Percentile
95th
Based on 3 968 companies
95th percentile
5.5%
Low
-467.8% — 0%
Typical Range
0% — 0.1%
High
0.1% — 10 009.8%
Distribution Statistics
United Kingdom
Min -467.8%
30th Percentile 0%
Median 0.1%
70th Percentile 0.1%
Max 10 009.8%

National Grid PLC
Glance View

National Grid PLC is an energy giant that plays a pivotal role in powering economies and ensuring the smooth flow of electricity and gas across vast landscapes. At its core, National Grid operates as a transmission company, owning and managing extensive networks of electricity and gas that form the backbone of energy infrastructure in the UK and northeastern United States. The company is like a master conductor in the complex orchestra of energy vital for connecting power generators with homes and businesses. This seamless operation involves an intricate dance of technology and logistics to ensure that energy is not only delivered efficiently but also reliably, adhering to stringent regulations and leveraging state-of-the-art systems to monitor and respond to demands in real-time. National Grid primarily makes its money through regulated revenues, derived from the rates it charges utility companies for using its transmission networks. These rates are determined by regulatory bodies, offering the company a stable and predictable income stream. Moreover, while the foundations of its business are rooted in these regulated activities, National Grid has also been investing significantly in renewable energy projects and smart grid technologies. This diversification strategy aims to position the company at the forefront of the energy transition towards a more sustainable future. Through these endeavors, National Grid not only bolsters its own financial health but also plays a crucial role in supporting wider environmental goals and policies aimed at reducing carbon emissions.

NG Intrinsic Value
598.44 GBX
Overvaluation 51%
Intrinsic Value
Price
What is Return on Capital Employed?
Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.
How is ROCE calculated?

ROCE is calculated by dividing the EBIT by the Avg Capital Employed.

ROCE
5.5%
=
EBIT
£5.2B
/
Avg Capital Employed
£93.7B
What is National Grid PLC's current ROCE?

The current ROCE for National Grid PLC is 5.5%, which is below its 3-year median of 5.9%.

How has ROCE changed over time?

Over the last 3 years, National Grid PLC’s ROCE has decreased from 5.9% to 5.5%. During this period, it reached a low of 5.5% on Sep 30, 2025 and a high of 7% on Mar 31, 2024.

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