Research Report ►(comments)

National Grid plc owns and operates electricity and natural gas infrastructure networks in the UK and the United States. National Grid transmits electricity via high-voltage networks.

Investment Impacts (help)

UK Country Analysis ► (edit / improve) The UK (GBP) has a highly productive, capitalist economy with a strong financial services industry. Currency: The British Pound is slightly overvalued on a global basis. The purchase price parity indicates that the British Pound should fall in value over time. Investor Survey: The UK’s economic environment is very favorable for long term economic growth due to high scores on economic freedom, government transparency, and economic diversity. Trade: Belgium, India, the EU, Netherlands, and France are the top export partners, while the leading industry is financial services. Commodity: The UK produces a significant amount of natural gas and imports of cocoa for domestic consumption. SWOT Analysis: The leading UK strength is the London Stock Exchange, which aids the financial services industry. The main weaknesses include high consumer and fiscal deficits. Trading Strategy: An overvalued currency, moderate investment flow potential and very favorable business environment leads to a neutral outlook for UK investments.

Commodity Investment Analysis

Natural Gas Commodity Analysis ► (edit / improve) Natural gas is a significant fuel source used to produce electricity in the world. It primarily consists of methane gas. Commodity: Natural is rated a hold. Natural gas demanders have a high potential to increase in value, while natural gas suppliers also have high potential in increase in value. Investor Survey: Natural gas’s long term growth potential is favorable due to high scores on difficulty to expand in the short term and sensitivity to price changes. SWOT Analysis: Strength: Natural gas is a cheap fuel source, especially in the US; Weakness: natural gas produces considerable pollution. Opportunity to grow: natural gas could produce hydrogen fuel, which is a substitute for gas in cars; Threats to growth: alternative forms of clean energy may compete with natural gas. Trading Strategy: The commodity analysis hold rating indicates that natural gas should stay the same price over the short term, whereas a moderately favorable investor survey means natural gas should increase in price over the long term.

Utility Industry Leader

Utility Industry Analysis ► (edit / improve) The utility industry includes companies whose sales come from the administration of public services such as water and power. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with positive potential. The Main Street analysis says a Buy, with SWOT strengths great than weaknesses and SWOT opportunities greater than threats. Trade: Denmark is a major area of utility innovation, especially for the generation of power. Main utility commodities include coal, natural gas, crude oil, and uranium. Trading Strategy: The utility industry tends to be less sensitive to economic cycles, because public services are essential to industrial and residential consumers. Look to buy undervalued utility investments when stock prices are low and sell overvalued utility investments during any part of the business cycle when stock prices are high. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.

- Industry leaders shape the political and economic conditions for their industry.

Utility Industry Analysis ► (edit / improve)

Description: The utility industry includes companies whose sales come from the administration of public services such as water and power. ... Read more.

Profit Analysis: The best way to profit from utilities stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, utility stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Utilities are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy utilities stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy utilities. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.

Trading Strategy: Utilities tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease utility purchases, because they are needed for everyday living. Spending on utilities generally remains constant, so during economic recessions, investors tend to buy utility stocks, which causes stock prices to increase. During economic recoveries, utilities stock prices generally underperform the general stock market. Investor who bought utilities stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, utilities tend to grow at the same rate as the general stock market.

¹ WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.

² Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), comparative value, and the Warren Buffett investment.

³ The weighted average cost of capital (WACC) for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC offers both stability and accuracy for each individual company.

SWOT Analysis - National Grid Transco ► Add Your Input Below

WACC Discount Rate Analysis - National Grid Transco ► Experiment with NGG's Analysis ►

Discounted Cash Flow Analysis - National Grid Transco ► Experiment with NGG's Analysis ►

Comparative Value Multiple Analysis - National Grid Transco ► Experiment with NGG's Analysis ►

Warren Buffett Intrinsic Value Analysis - National Grid Transco ► Experiment with NGG's Analysis ►

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