National GridNGGTF +4.54%74 ROE % is 13.63% as of Mar. 2026, which is 60% above its 10-year median of 8.50. GuruFocus rates NGGTF with a GF Score™ of 74/100 and a GF Value™ of $9.67 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 503 Utilities - Regulated companies, National Grid ranks worse than 50.7% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. National Grid's annualized net income for the quarter that ended in Mar. 2026 was $6,997 Mil. National Grid's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $51,328 Mil. Therefore, National Grid's annualized ROE % for the quarter that ended in Mar. 2026 was 13.63%.
The historical rank and industry rank for National Grid's ROE % or its related term are showing as below:
NGGTF'
s ROE % Range Over the Past 10 Years
Min: 6.43 Med: 8.5 Max: 45.96
Current: 8.51
During the past 13 years, National Grid's highest ROE % was 45.96%. The lowest was 6.43%. And the median was 8.50%.
NGGTF's ROE % is ranked worse than 50.7% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs NGGTF: 8.51
National Grid (OTCPK:NGGTF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
National Grid ROE % Related Terms
National Grid ROE % Historical Data
* Premium members only.
The historical data trend for National Grid's ROE % 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.
For the Utilities - Regulated Electric subindustry, National Grid's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's ROE % distribution charts can be found below:
* The bar in red indicates where National Grid's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
National Grid (NGGTF) has a ROE % of 13.63% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on National Grid and its competitors. This is 60% above median its historical median of 8.50. Over the past decade, National Grid's ROE % has ranged from 6.43 to 45.96. According to the industry distribution chart, National Grid ranks #255 out of 503 companies in the Utilities - Regulated industry, placing it in the top 50.7%.
Is National Grid's ROE % too high?
National Grid's current ROE % of 13.63% is 60% above median its 10-year median of 8.50. Over the past 10 years, this metric has ranged from a low of 6.43 to a high of 45.96. The Utilities - Regulated industry median ROE % is 8.62. National Grid's value of 13.63% is 58.1% above this industry median. Based on the distribution chart, National Grid ranks #255 out of 503 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 ROE % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #255 out of 503 companies for ROE %. This places National Grid in the lower half of its industry. The industry median ROE % is 8.62. National Grid's value of 13.63% is 58.1% above this benchmark. Historically, National Grid's own ROE % has ranged from 6.43 to 45.96 over the past decade. While the company's 10-year median is 8.50 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current ROE % of 13.63% is 58.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current ROE % is 13.63%, which is 60% above median its own 10-year median of 8.50. 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 (NGGTF) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.67, compared to a current price of $16.56 — trading 71.2% above its estimated fair value. The current ROE % is 13.63%, which is 60% above median its 10-year median of 8.50 and 58.1% above the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For National Grid (NGGTF), the current ROE % is 13.63% 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 (NGGTF) Overvalued in 2026?
Based on GuruFocus' analysis, National Grid stock appears to be overvalued.
The current stock price of $16.56 is trading 71.2% above its estimated GF Value™ of $9.67.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for NGGTF:
ROE %: 13.63% (60% above median its 10-year median of 8.50)
GF Value™: $9.67 vs. price of $16.56 (71.2% above fair value)
Industry Position: 58.1% above the Utilities - Regulated median (#255 of 503)
No single metric tells the full story. See the NGGTF 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
Get the complete analysis for NGGTF
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NGGTF has been successfully added to your 
