Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. National Grid's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was £1,530 Mil. National Grid's average total debt for the quarter that ended in Mar. 2026 was £46,335 Mil. Therefore, National Grid's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.30%.
National Grid (CHIX:NGl) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
National Grid Effective Interest Rate on Debt % Related Terms
National Grid Effective Interest Rate on Debt % Historical Data
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The historical data trend for National Grid's Effective Interest Rate on Debt % 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.
National Grid Effective Interest Rate on Debt % Chart
CHIX:NGL vs NEE, SO, DUK: Effective Interest Rate on Debt % Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where National Grid's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is two times the semi-annual (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 3.30% mean?
National Grid (CHIX:NGL) has a Effective Interest Rate on Debt % of 3.30% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on National Grid and its competitors.
Is National Grid's Effective Interest Rate on Debt % too high?
National Grid's current Effective Interest Rate on Debt % is 3.30%. 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 Effective Interest Rate on Debt % compare to NEE and SO?
National Grid's Effective Interest Rate on Debt % of 3.30% can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Utilities - Regulated company?
A good Effective Interest Rate on Debt % depends on the Utilities - Regulated industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on National Grid and its competitors. National Grid's current Effective Interest Rate on Debt % is 3.30%. 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 £7.46, compared to a current price of £12.30 — trading 64.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 3.30%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current Effective Interest Rate on Debt % is 3.30% 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 £12.30 is trading 64.8% above its estimated GF Value™ of £7.46.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Effective Interest Rate on Debt %: 3.30%
GF Value™: £7.46 vs. price of £12.30 (64.8% above fair value)
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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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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