National Grid (LON:NG) (LON:NG.) is a large cap energy company that provides electricity and gas to customers. It operates through three segments: UK Electricity Transmission, UK Gas Transmission and US Regulated.
Right now the National Grid (LON:NG) share price is on the expensive side from a factor perspective, based on its Value Rank of 35. Let's see why this is.
A closer look at National Grid's Value Rank
We can see by using National Grid’s StockReport that the group has a:
This combination of financial traits suggests that National Grid (LON:NG) stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.
Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed National Grid (LON:NG) (LON:NG.) is to these three factors. We go into greater detail on factor investing in this video.
Disclaimer: These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. The author has no position in the stocks mentioned, unless otherwise stated.