National GridCHIX:NGL +1.68%74 Interest Coverage is 5.33 as of Mar. 2026, which is 76% above its 10-year median of 3.03. GuruFocus rates CHIX:NGL with a GF Score™ of 74/100 and a GF Value™ of £7.51 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 449 Utilities - Regulated companies, National Grid ranks worse than 53.67% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. National Grid's
Operating Income
for the
six
months ended in Mar. 2026 was £4,075 Mil. National Grid's Interest Expense for the
six
months ended in Mar. 2026 was £-765 Mil.
National Grid's interest coverage for the quarter that ended in Mar. 2026 was 5.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for National Grid's Interest Coverage or its related term are showing as below:
CHIX:NGl'
s Interest Coverage Range Over the Past 10 Years
Min: 2.68 Med: 3.03 Max: 4.98
Current: 3.45
CHIX:NGl's Interest Coverage is ranked worse than 53.67% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs CHIX:NGl: 3.45
National Grid (CHIX:NGl) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
National Grid Interest Coverage Related Terms
National Grid Interest Coverage Historical Data
* Premium members only.
The historical data trend for National Grid's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CHIX:NGL vs NEE, SO, DUK: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Interest Coverage distribution charts can be found below:
* The bar in red indicates where National Grid's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (CHIX:NGL) has a Interest Coverage of 5.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on National Grid and its competitors. This is 76% above median its historical median of 3.03. Over the past decade, National Grid's Interest Coverage has ranged from 2.68 to 4.98. According to the industry distribution chart, National Grid ranks #241 out of 449 companies in the Utilities - Regulated industry, placing it in the top 53.7%.
Is National Grid's Interest Coverage too high?
National Grid's current Interest Coverage of 5.33 is 76% above median its 10-year median of 3.03. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 4.98. The Utilities - Regulated industry median Interest Coverage is 3.78. National Grid's value of 5.33 is 41% above this industry median. Based on the distribution chart, National Grid ranks #241 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, National Grid has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Grid's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #241 out of 449 companies for Interest Coverage. This places National Grid in the lower half of its industry. The industry median Interest Coverage is 3.78. National Grid's value of 5.33 is 41% above this benchmark. Historically, National Grid's own Interest Coverage has ranged from 2.68 to 4.98 over the past decade. While the company's 10-year median is 3.03 vs. the industry median of 3.78, 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 Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current Interest Coverage of 5.33 is 41% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Interest Coverage is 5.33, which is 76% above median its own 10-year median of 3.03. 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 £7.51, compared to a current price of £12.57 — trading 67.3% above its estimated fair value. The current Interest Coverage is 5.33, which is 76% above median its 10-year median of 3.03 and 41% above the Utilities - Regulated industry median of 3.78. National Grid's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current Interest Coverage is 5.33 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 £12.57 is trading 67.3% above its estimated GF Value™ of £7.51.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Interest Coverage: 5.33 (76% above median its 10-year median of 3.03)
GF Value™: £7.51 vs. price of £12.57 (67.3% above fair value)
Industry Position: 41% above the Utilities - Regulated median (#241 of 449)
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.
74GF Score
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