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National GridCHIX:NGL +1.76%73 Debt-to-EBITDA is 4.44 as of Mar. 2026, which is 29% below its 10-year median of 6.22. GuruFocus rates CHIX:NGL with a GF Score™ of 73/100 and a GF Value™ of £7.47 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 450 Utilities - Regulated companies, National Grid ranks worse than 72.22% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for National Grid's Debt-to-EBITDA or its related term are showing as below:
CHIX:NGl'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5 Med: 6.22 Max: 8.03
Current: 5.79
During the past 13 years, the highest Debt-to-EBITDA Ratio of National Grid was 8.03. The lowest was 5.00. And the median was 6.22.
CHIX:NGl's Debt-to-EBITDA is ranked worse than 72.22% of 450
companies
in the Utilities - Regulated industry
Industry Median: 3.99
vs CHIX:NGl: 5.79
National Grid (CHIX:NGl) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
National Grid Debt-to-EBITDA Related Terms
National Grid Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for National Grid's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:NGL vs NEE, SO, DUK: Debt-to-EBITDA Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
National Grid Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where National Grid's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Mar. 2026) EBITDA data.
National Grid (CHIX:NGL) has a Debt-to-EBITDA of 4.44 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on National Grid. This is 29% below median its historical median of 6.22. Over the past decade, National Grid's Debt-to-EBITDA has ranged from 5.00 to 8.03. According to the industry distribution chart, National Grid ranks #325 out of 450 companies in the Utilities - Regulated industry, placing it in the top 72.2%.
Is National Grid's Debt-to-EBITDA too high?
National Grid's current Debt-to-EBITDA of 4.44 is 29% below median its 10-year median of 6.22. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.03. The Utilities - Regulated industry median Debt-to-EBITDA is 3.99. National Grid's value of 4.44 is 11.3% above this industry median. Based on the distribution chart, National Grid ranks #325 out of 450 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, National Grid has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Grid's Debt-to-EBITDA compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #325 out of 450 companies for Debt-to-EBITDA. This places National Grid in the lower half of its industry. The industry median Debt-to-EBITDA is 3.99. National Grid's value of 4.44 is 11.3% above this benchmark. Historically, National Grid's own Debt-to-EBITDA has ranged from 5.00 to 8.03 over the past decade. While the company's 10-year median is 6.22 vs. the industry median of 3.99, National Grid has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 3.99, based on 450 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current Debt-to-EBITDA of 4.44 is 11.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on National Grid. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Debt-to-EBITDA is 4.44, which is 29% below median its own 10-year median of 6.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Grid stock overvalued right now?
Based on GuruFocus' analysis, National Grid (CHIX:NGL) is currently considered Significantly Overvalued. The stock's GF Value™ is £7.47, compared to a current price of £12.45 — trading 66.6% above its estimated fair value. The current Debt-to-EBITDA is 4.44, which is 29% below median its 10-year median of 6.22 and 11.3% above the Utilities - Regulated industry median of 3.99. National Grid's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current Debt-to-EBITDA is 4.44 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is National Grid (CHIX:NGL) Overvalued in 2026?
Based on GuruFocus' analysis, National Grid stock appears to be overvalued.
The current stock price of £12.45 is trading 66.6% above its estimated GF Value™ of £7.47.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Debt-to-EBITDA: 4.44 (29% below median its 10-year median of 6.22)
GF Value™: £7.47 vs. price of £12.45 (66.6% above fair value)
Industry Position: 11.3% above the Utilities - Regulated median (#325 of 450)
No single metric tells the full story. See the CHIX:NGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Grid owns and operates the electric transmission system in England and Wales. It sold the bulk of its UK gas transmission business in fiscal 2023 to fund the acquisition of PPL's UK power distribution assets. In the Northeastern United States, it serves electricity and gas customers combined in three states. It also owns regulated transmission electricity networks in the United States, metering services and merchant transmission lines in the UK.
73GF Score
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