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National GridCHIX:NGL +0.48%73 Return-on-Tangible-Asset is 5.65% as of Mar. 2026, which is 73% above its 10-year median of 3.27. GuruFocus rates CHIX:NGL with a GF Score™ of 73/100 and a GF Value™ of £7.46 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 510 Utilities - Regulated companies, National Grid ranks better than 52.35% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. National Grid's annualizedNet Income for the quarter that ended in Mar. 2026 was £5,248 Mil. National Grid's average total tangible assets for the quarter that ended in Mar. 2026 was £92,867 Mil. Therefore, National Grid's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 5.65%.
The historical rank and industry rank for National Grid's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:NGl'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.15 Med: 3.27 Max: 13.98
Current: 3.48
During the past 13 years, National Grid's highest Return-on-Tangible-Asset was 13.98%. The lowest was 2.15%. And the median was 3.27%.
CHIX:NGl's Return-on-Tangible-Asset is ranked better than 52.35% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.305
vs CHIX:NGl: 3.48
National Grid (CHIX:NGl) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
National Grid Return-on-Tangible-Asset Related Terms
National Grid Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for National Grid's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where National Grid's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.65% mean?
National Grid (CHIX:NGL) has a Return-on-Tangible-Asset of 5.65% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on National Grid and its competitors. This is 73% above median its historical median of 3.27. Over the past decade, National Grid's Return-on-Tangible-Asset has ranged from 2.15 to 13.98. According to the industry distribution chart, National Grid ranks #243 out of 510 companies in the Utilities - Regulated industry, placing it in the top 47.6%.
Is National Grid's Return-on-Tangible-Asset too high?
National Grid's current Return-on-Tangible-Asset of 5.65% is 73% above median its 10-year median of 3.27. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 13.98. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.31. National Grid's value of 5.65% is 71% above this industry median. Based on the distribution chart, National Grid ranks #243 out of 510 companies in the Utilities - Regulated industry, which is above 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 Return-on-Tangible-Asset compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #243 out of 510 companies for Return-on-Tangible-Asset. This puts National Grid in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.31. National Grid's value of 5.65% is 71% above this benchmark. Historically, National Grid's own Return-on-Tangible-Asset has ranged from 2.15 to 13.98 over the past decade. While the company's 10-year median is 3.27 vs. the industry median of 3.31, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.31, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current Return-on-Tangible-Asset of 5.65% is 71% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Return-on-Tangible-Asset is 5.65%, which is 73% above median its own 10-year median of 3.27. 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 £12.46 — trading 67% above its estimated fair value. The current Return-on-Tangible-Asset is 5.65%, which is 73% above median its 10-year median of 3.27 and 71% above the Utilities - Regulated industry median of 3.31. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current Return-on-Tangible-Asset is 5.65% 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 £12.46 is trading 67% above its estimated GF Value™ of £7.46.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Return-on-Tangible-Asset: 5.65% (73% above median its 10-year median of 3.27)
GF Value™: £7.46 vs. price of £12.46 (67% above fair value)
Industry Position: 71% above the Utilities - Regulated median (#243 of 510)
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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