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National Grid PLC

NG.: XLON (GBR)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 3,471.00	Qjtq	Yqrdgrzf

National Grid Earnings: Full-Year Contribution From WPD and Inflation Support Growth, as Expected

May 18, 2023

We don't plan to materially change our GBX 1,040 fair value estimate after no-moat National Grid released fiscal 2023 earnings in line with the consensus it polled and guided for a slight EPS slide in fiscal 2024 because of a regulatory change that has no cash flow impact. The firm will pay a fiscal 2023 dividend of GBX 55.44, 8.8% above fiscal 2022, in line with the policy to increase the dividend in line with inflation and implying a 4.9% yield, above the 4.2% sector average. Nonetheless, the shares appear a bit overvalued.

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