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National Grid PLC  (NYSE:NGG) Median PS Value: $58.60 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median P/S ratio. National Grid PLC's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2017 was $26.785. National Grid PLC's 10-Year median P/S ratio is 1.97. Therefore, the Median P/S Value for today is $58.60.

As of today, National Grid PLC's share price is $64.68. National Grid PLC's median P/S value is $58.60. Therefore, National Grid PLC's Price to Median P/S Value Ratio for today is 1.10.

NYSE:NGG' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.43   Max: 2.81
Current: 1.1

0.43
2.81

During the past 13 years, the highest Price to Median P/S Value Ratio of National Grid PLC was 2.81. The lowest was 0.43. And the median was 0.90.

NYSE:NGG's Price-to-Median-PS-Value is ranked higher than
51% of the 592 Companies
in the Global industry.

( Industry Median: 1.13 vs. NYSE:NGG: 1.10 )

Historical Data

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

* Premium members only.

National Grid PLC Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.46 65.74 60.75 58.24 0.00

National Grid PLC Semi-Annual Data

Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.75 0.00 58.24 0.00 0.00

Competitive Comparison
* 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.


Calculation

National Grid PLC's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=26.785*1.97
=52.77

10-Year Median P/S Ratio is 1.97.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. National Grid PLC's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2017 was $26.785.

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


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.

National Grid PLC's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=64.68/52.77
=1.23

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


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