National GridCHIX:NGL -0.24%73 3-Year ROIIC % is 4.07 as of Mar. 2026, which is 105% above its 10-year median of 1.99. GuruFocus rates CHIX:NGL with a GF Score™ of 73/100 and a GF Value™ of £7.47 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 477 Utilities - Regulated companies, National Grid ranks better than 50.31% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
National Grid's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 4.07%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for National Grid's 3-Year ROIIC % or its related term are showing as below:
CHIX:NGl's 3-Year ROIIC % is ranked better than 50.31% of 477
companies
in the Utilities - Regulated industry
Industry Median: 4.02
vs CHIX:NGl: 4.07
National Grid (CHIX:NGl) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
National Grid 3-Year ROIIC % Related Terms
National Grid 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for National Grid's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Utilities - Regulated Electric subindustry, National Grid's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where National Grid's 3-Year ROIIC % falls into.
National Grid's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 4412.595 (Mar. 2026) - 3690.792 (Mar. 2023) )
/
( 105529 (Mar. 2026) - 87814 (Mar. 2023) )
=
721.803
/
17715
=
4.07%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
National Grid (CHIX:NGL) has a 3-Year ROIIC % of 4.07 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on National Grid and its competitors. This is 105% above median its historical median of 1.99. According to the industry distribution chart, National Grid ranks #237 out of 477 companies in the Utilities - Regulated industry, placing it in the top 49.7%.
Is National Grid's 3-Year ROIIC % too high?
National Grid's current 3-Year ROIIC % of 4.07 is 105% above median its 10-year median of 1.99. The Utilities - Regulated industry median 3-Year ROIIC % is 4.02. National Grid's value of 4.07 is 1.2% above this industry median. Based on the distribution chart, National Grid ranks #237 out of 477 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 3-Year ROIIC % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #237 out of 477 companies for 3-Year ROIIC %. This puts National Grid in the upper half of its industry. The industry median 3-Year ROIIC % is 4.02. National Grid's value of 4.07 is 1.2% above this benchmark. While the company's 10-year median is 1.99 vs. the industry median of 4.02, 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 3-Year ROIIC % for an Utilities - Regulated company?
The median 3-Year ROIIC % among Utilities - Regulated companies is 4.02, based on 477 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current 3-Year ROIIC % of 4.07 is 1.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current 3-Year ROIIC % is 4.07, which is 105% above median its own 10-year median of 1.99. 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 £7.47, compared to a current price of £12.44 — trading 66.5% above its estimated fair value. The current 3-Year ROIIC % is 4.07, which is 105% above median its 10-year median of 1.99 and 1.2% above the Utilities - Regulated industry median of 4.02. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For National Grid (CHIX:NGL), the current 3-Year ROIIC % is 4.07 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 £12.44 is trading 66.5% above its estimated GF Value™ of £7.47.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for CHIX:NGL:
3-Year ROIIC %: 4.07 (105% above median its 10-year median of 1.99)
GF Value™: £7.47 vs. price of £12.44 (66.5% above fair value)
Industry Position: 1.2% above the Utilities - Regulated median (#237 of 477)
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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