National GridCHIX:NGL +1.22%74 Return-on-Tangible-Equity is 20.92% as of Mar. 2026, which is 50% above its 10-year median of 13.99. GuruFocus rates CHIX:NGL with a GF Score™ of 74/100 and a GF Value™ of £7.48 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 496 Utilities - Regulated companies, National Grid ranks better than 58.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. National Grid's annualized net income for the quarter that ended in Mar. 2026 was £5,248 Mil. National Grid's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £25,091 Mil. Therefore, National Grid's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.92%.
The historical rank and industry rank for National Grid's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:NGl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.78 Med: 13.99 Max: 75.31
Current: 12.98
During the past 13 years, National Grid's highest Return-on-Tangible-Equity was 75.31%. The lowest was 9.78%. And the median was 13.99%.
CHIX:NGl's Return-on-Tangible-Equity is ranked better than 58.27% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs CHIX:NGl: 12.98
National Grid (CHIX:NGl) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
National Grid Return-on-Tangible-Equity Related Terms
National Grid Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for National Grid's Return-on-Tangible-Equity 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-Equity Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where National Grid's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.92% mean?
National Grid (CHIX:NGL) has a Return-on-Tangible-Equity of 20.92% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on National Grid and its competitors. This is 50% above median its historical median of 13.99. Over the past decade, National Grid's Return-on-Tangible-Equity has ranged from 9.78 to 75.31. According to the industry distribution chart, National Grid ranks #207 out of 496 companies in the Utilities - Regulated industry, placing it in the top 41.7%.
Is National Grid's Return-on-Tangible-Equity too high?
National Grid's current Return-on-Tangible-Equity of 20.92% is 50% above median its 10-year median of 13.99. Over the past 10 years, this metric has ranged from a low of 9.78 to a high of 75.31. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. National Grid's value of 20.92% is 91.8% above this industry median. Based on the distribution chart, National Grid ranks #207 out of 496 companies in the Utilities - Regulated industry, which is above 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 Return-on-Tangible-Equity compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #207 out of 496 companies for Return-on-Tangible-Equity. This puts National Grid in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.91. National Grid's value of 20.92% is 91.8% above this benchmark. Historically, National Grid's own Return-on-Tangible-Equity has ranged from 9.78 to 75.31 over the past decade. While the company's 10-year median is 13.99 vs. the industry median of 10.91, 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-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current Return-on-Tangible-Equity of 20.92% is 91.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Return-on-Tangible-Equity is 20.92%, which is 50% above median its own 10-year median of 13.99. 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 £7.48, compared to a current price of £12.46 — trading 66.5% above its estimated fair value. The current Return-on-Tangible-Equity is 20.92%, which is 50% above median its 10-year median of 13.99 and 91.8% above the Utilities - Regulated industry median of 10.91. National Grid's overall GF Score™ is 74/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current Return-on-Tangible-Equity is 20.92% 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 66.5% above its estimated GF Value™ of £7.48.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
Return-on-Tangible-Equity: 20.92% (50% above median its 10-year median of 13.99)
GF Value™: £7.48 vs. price of £12.46 (66.5% above fair value)
Industry Position: 91.8% above the Utilities - Regulated median (#207 of 496)
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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