National grid (LSE: NG) Actions paid a dividend last year 58.52 pence. At the current price of PLN 9.44, this means a profitability of 6.2%.

Thus, investors considering 9,000 pounds in the international giant of electricity and gas will earn 558 pounds in the first -year dividends.

After 10 years of the same average performance, this would augment to $ 5,580. And after 30 years on the same basis will augment to 16,740 £.

Most importantly, reinvesting dividends back to the action – known as “complex dividend” – could be done much more.

By doing this with the same average profitability of 6.2%, 7,704 £ will be achieved after 10 years, not £ 5,580. After 30 years on this basis, 48,537 £ were generated in dividends instead of 16,740 £.

Including 9,000 pounds, the total value of the national holding would be 57,537 pounds. Until then, it pays this annual dividend income of 3568 pounds.

Lower dividend, but a higher price of shares?

The profitability of the action moves in the opposite direction to the share price. Analysts predict that the profitability of the national network will drop to 5% in the 2026 tax year before they augment slightly to 5.1% of the year.

To say, the price of the company’s shares (and dividend) is ultimately due to the augment in earnings. The risk for national networks is huge, whose expected infrastructure in its expected infrastructure.

However, analysts design that this will augment 16% annually by the end of 2017. Indeed, the results November 7, 2024/25 H1 brought a basic profit by 14% a year a year to 2.046 billion GBP.

This comes from higher revenues in activities in Great Britain and the United States. This is not only the owner of the electricity transmission system in England and Wales. But it also has over 20 million electricity, natural gas and pure energy in New York and Massachusetts.

The National Grid now forecasts an augment in operational profits for a budget year 2024/2025 of about 10%. And from 2024/25 to 2028/29, estimates that the elaborate annual growth rate is 6-8% in its profit per share.

How many values ​​are in the actions?

In terms of price to profit at the beginning, domestic network transactions at 27.1 compared to an average competition of 12.5. So it is overstated in this measure.

The same applies to his price ratio for sales 2.4 compared to an average of 0.9 for peers.

However, in relation to the price to the book, however, it looks disorder of 1.3 compared to 1.7 for its competitors. They include Angie at 1.2, Iberdrola by 1.8, ETERNITY at 1.9 and Enel at 2.

I conducted an analysis of discounted cash flows (DCF) to obtain further transparency of the valuation. This shows where the price of the company should be, based on future cash flow forecasts.

The employ of data from other analysts and my DCF shows that the shares are underestimated in the amount of $ 9.44.

Thus, the fair value is technically 11.65 GBP, although the unpredictability of the market can lower or augment.

Will I buy shares?

Therefore, if I did not focus on buying shares that gives 7%+, I would add national network shares to my portfolio today and I think they are worth investors.

I think that the potential of high earnings will cause a much higher price of shares.