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GuruFocus has detected 3 Warning Signs with National Grid PLC $NGG.
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National Grid PLC (NYSE:NGG)
Price-to-Free-Cash-Flow Ratio
17.75 (As of Today)

As of today, National Grid PLC's share price is $58.33. National Grid PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $3.29. Hence, National Grid PLC's Price-to-Free-Cash-Flow Ratio for today is 17.75.

NGG' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 2.99   Max: 55.25
Current: 4.74

2.99
55.25

During the past 13 years, National Grid PLC's highest Price-to-Free-Cash-Flow Ratio was 55.25. The lowest was 2.99. And the median was 7.54.

NGG's Price-to-Free-Cash-Flow ratio is ranked lower than
62% of the 243 Companies
in the Global Utilities - Diversified industry.

( Industry Median: 14.63 vs. NGG: 4.74 )

National Grid PLC's Free Cash Flow per Share for the six months ended in Sep. 2016 was $0.26. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $3.29.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of National Grid PLC was 39.50% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 135.70% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 36.30% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 18.70% per year.

During the past 13 years, National Grid PLC's highest 3-Year average Free Cash Flow per Share Growth Rate was 176.80% per year. The lowest was 0.00% per year. And the median was -4.85% per year.


Definition

National Grid PLC's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=58.33/3.286
=17.75

National Grid PLC's Share Price of today is $58.33.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. National Grid PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $3.29.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

National Grid PLC Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
pfcf 33.8118.9517.683.332.995.8412.9711.726.545.55

National Grid PLC Semi-Annual Data

Mar12Sep12Mar13Sep13Mar14Sep14Mar15Sep15Mar16Sep16
pfcf 5.8437.9412.970.0011.720.006.540.005.550.00
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