Southern Co. (0L8A) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Southern Co. $60.85, price $83.71, upside -27.3%, quality 45 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $51.05 – $98.85 · fair‑value band $45.64 – $78.81 · the $83.71 price screens above the $60.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets.
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The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
Stock analysis
Southern Co. (0L8A) currently trades at $83.71, while our model-based Fair Value estimate is $60.85, 27.3% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $75.38 per share, and 2 of the 14 models we run sit above the $83.71 price.
Bear case: the Earnings-Based group reads lowest at $22.49, and 12 of the 14 models stay below the price. Evidence for this calculation is medium.
Scenario range: $45.64 (bear) to $78.81 (bull), the price of $83.71 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 45/100 (below-average quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Southern Co. reported revenue of $29.6B in FY2025 versus $23.2B in FY2021, a compound +6.2%/yr. Reported net income was $4.3B in FY2025, compounding +15.9%/yr from FY2021.
Key figures
Market cap $92.3B · P/E ratio 0.5 · P/S ratio 0.07 · EPS (TTM) $2.15 · Dividend yield 3.5% · Net margin 14.7% · Return on equity 11.0% · Return on assets (EBIT) 4.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −34% fair-value upside, at −27%, 0L8A screens cheaper than that median.
Fair Value models
Bear $45.64Fair Value $60.85Bull $78.81
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.43/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+10.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Start year 2020 (pandemic). Over 10 years: +5.4% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+10.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.7%
Dividend (yield on the price)3.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.7% vs 4.2%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25% → 25%
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Electric Utilities” was too small, so the broader sector is used.)Industrials · 5305 stocks
Beats the sector median on 7/10 measures
Overall it ranks above its sector peers.
Valuation
Quality Score45 · Below median
Fair Value upside−27.3% · Below median
Profitability
Return on equity (TTM)11.0% · Above median
Return on assets3.2% · Above median
Net margin (TTM)14.5% · Top 25%
Operating margin (TTM)25.8% · Top 25%
Growth and dividend
Revenue growth8.0% · Above median
Dividend yield (TTM)3.5% · Above median
Balance sheet
Debt / equity1.25× · Highest 25%
Valuation Multiplesvs Industrials median · lower = cheaper
P/E (TTM)0.5× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 17
FUTURE (revenue growth)40· sector 36
PAST (return on equity)44· sector 29
HEALTH (low debt)38· sector 94
DIVIDEND (yield)71· sector 37
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Southern Co. Fair Value". https://www.fairvalue-calculator.com/stock/0L8A
Frequently asked questions
Is Southern Co. (0L8A) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $60.85 versus a price of $83.71, about −27% upside (overvalued).
What is the fair value of 0L8A?
Our model-based fair value for Southern Co. is $60.85 (as of Sep 24, 2026), built from audited fundamentals. The current price: $83.71.
What is the quality score of 0L8A?
Southern Co. has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Southern Co. (0L8A)?
Our model-based price target is the fair value of $60.85 (as of Sep 24, 2026) from 14 valuation models. Cautious scenario $45.64, optimistic scenario $78.81. It is a calculation from audited fundamentals, not an analyst target.
What is the Southern Co. stock forecast for 2026?
Our models put fair value at $60.85, about −27% upside versus a price of $83.71 (overvalued). Cautious scenario $45.64, optimistic scenario $78.81. The calculation is refreshed regularly with new filings.
What is the revenue of Southern Co. (0L8A)?
Southern Co. reported trailing-twelve-month revenue of about $30.2B (latest available figure, as of Sep 24, 2026).
Does Southern Co. pay a dividend?
Southern Co. currently shows a dividend yield of about 3.54% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of Southern Co. (0L8A)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Southern Co. it is $60.85 per share (as of Sep 24, 2026), against a price of $83.71. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Southern Co. stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0L8A trades above its calculated fair value: price $83.71, fair value $60.85, a gap of about −27% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0L8A?
No. The price is what the market pays today ($83.71); the fair value is what the company's own numbers justify ($60.85). For Southern Co. the two are $22.86 per share apart. That gap is exactly why we show both numbers side by side.
How much is Southern Co. worth?
The market values Southern Co. at about $92.3B (market capitalisation, as of Sep 24, 2026). Per share that is $83.71; our models calculate a fair value of $60.85 per share.
What do the bullish and bearish scenarios say about 0L8A?
Our models span a range for Southern Co.: cautious scenario $45.64, base $60.85, optimistic $78.81 per share (as of Sep 24, 2026, price $83.71). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 0L8A?
Southern Co. trades at a price-to-earnings ratio of 0.5 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $60.85 is built from several models across several years.
How solid is the balance sheet of Southern Co. (0L8A)?
Balance-sheet figures for Southern Co. (as of Sep 24, 2026): return on equity 11.0%, debt of 1.25 per unit of equity. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is 0L8A from its 52-week high?
Southern Co. trades at $83.71, about 15% below its 52-week high of $98.85 and 2% above the low of $82.29 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $60.85 is for.
Which stocks are comparable to Southern Co.?
From the same area (Industrials) we also value SOJE, Entergy Mississippi, Inc, Entergy New Orleans, LLC, VEERENRGY, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Southern Co. stock attractive at the current price?
The data as of Sep 24, 2026: price $83.71, calculated fair value $60.85 (−27%), Quality Score 45/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0L8A calculated?
We run Southern Co. through 14 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $60.85, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Southern Co. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Southern Co. (0L8A)?
The closing price on Oct 2, 2026 was $83.71. Our model-based fair value is $60.85, about −27% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Southern Co. right now?
The price sits above even our optimistic bull case ($78.81). The favourable scenario is already priced in. Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Southern Co. (0L8A) come from?
Earnings per share at Southern Co. grew +5.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.3 %, EBIT margin +0.3 %, tax rate +2.3 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Southern Co.
How large is the market capitalisation of Southern Co. (0L8A)?
The market capitalisation of Southern Co. is $92.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Southern Co. (0L8A)?
The price-to-sales ratio of Southern Co. is 0.07 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Southern Co. (0L8A)?
Earnings per share at Southern Co. are $2.15 (price ÷ EPS = P/E 0.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Southern Co. (0L8A)?
The dividend yield of Southern Co. is 3.5% (payout 138%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Southern Co. (0L8A)?
The net margin of Southern Co. is 14.7% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Southern Co. (0L8A)?
The return on equity (ROE) of Southern Co. is 11.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Southern Co. (0L8A)?
On an EBIT basis the return on assets of Southern Co. is 4.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Southern Co. (0L8A)?
The operating margin of Southern Co. is 25.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Southern Co. (0L8A)?
Revenue at Southern Co. is growing +8.0% versus a year earlier (3y avg +0.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Southern Co. (0L8A)?
Earnings per share at Southern Co. are growing −0.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Southern Co. (0L8A) generate?
The free cash flow of Southern Co. is −$3.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Southern Co. (0L8A) carry?
The net debt of Southern Co. is $73.7B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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