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Is this Large Market Cap Stock target price reasonable for National Grid plc (NYSE:NGG)?

The company in question is, National Grid plc (NYSE:NGG) currently with a stock price of 72.76 (-1.17% today). The market cap for National Grid plc is 54606.16, and is in the sector Utilities, and Gas Utilities industry. The target price for National Grid plc is 75.1. Currently National Grid plc is trading with a P/E of 16.19, and a forward P/E of 16.23. Average volume for National Grid plc is 530.03 and so far today it is 172010.

Performance in the last year for National Grid plc has been 18.08%. For EPS growth, National Grid plc has seen a growth of 28.70%, and is looking to grow in the next year to 5.27%. More long term stats show that EPS growth has been 2.40% over the last five years and could be 2.60% for the next five years. National Grid plc has seen sales growth quarter over quarter at 2.10%, with EPS growth quarter over quarter at 27.00%. The 20-day simple moving average is 1.26%, with the 200-day simple moving average coming to 5.62%.

Since the IPO date for National Grid plc on the 8/10/2005, National Grid plc has seen performance year to date to be 8.88%. With National Grid plc trading at 72.76, the dividend yield is 4.32%, and the EPS is 4.55.

So could National Grid plc, be undervalued? Well as said before P/E is 16.19. The PEG is 6.23, P/S is 2.73 and the P/B is at 3.08. The P/cash is 13.21, with P/free cash flow at 102.39.

National Grid plc ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.8. This is with long term debt/equity at 1.82, and total debt/equity at 2.09.

In terms of margins, National Grid plc has a gross margin of *TBA, an operating margin of 27.00% and a profit margin of 17.10%.Payout ratio for National Grid plc is 62.80%. Return on assets come to 4.70% with return on investment coming to 8.70%.

Insider ownership for National Grid plc, is at 3.50% and institutional ownership comes to 6.20%. Outstanding shares are at 741.73. While shares float is 716.96. The float short is currently 0.34%, and short ratio is 4.55.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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