Southern Company (SO) fair value: what the stock is really worth
We calculate from audited financials what Southern Company is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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Utilities · US · Market cap $108B · ISIN US8425871071
At a glance
SCSouthern CompanySO · US
Price$88.99
Fair Value$58.81
Upside−33.9%
Quality43/100
Below-average quality, and trading another 51% above our fair value of $58.81.
As of Sep 9, 2026, the fair value of Southern Company is $58.81 per share against a price of $88.99, so the fair value sits 34% below the price. A model estimate from reported figures, not an analyst target.
!Expensive Growth (revenue 5y +7.7 %/yr)
✓Solidly profitable · 14.5% net margin
!High debt · negative free cash flow
·3.33% dividend yield
!Mixed vs. peers (6/14)
!Moderate moat 59/100
!Weak on balance sheet: 10 out of 100
Evidence: HighRange $36.59 to $81.83
Fair value as of: Sep 9, 2026
From 15 valuation models · updated today
Share price −4.0% over the past month.
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What matters now
The price sits above even our optimistic bull case ($81.83). The favourable scenario is already priced in.
Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
A fairly wide model range ($36.59 to $81.83) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 9, 2026.
How to read this chart
60‑month range $50.27 – $98.30 · fair‑value band $36.59 – $81.83 · the $88.99 price screens above the $58.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 9, 2026.
Southern Company (SO) currently trades at $88.99, while our model-based Fair Value estimate is $58.81, implying the stock looks roughly 51.3% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of $58.74 per share, and 0 of the 15 models we run sit above the $88.99 price. Bear case: the Economic Profit group reads lowest at $7.39, and 15 of the 15 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Southern Company generated revenue of $30.2B at a net margin of 14.5%. Revenue grew 8.0% year over year. It earns a return on equity of 11.0%. Net debt stands at $64.2B. Fundamentals as of Sep 9, 2026
Scenario range: $36.59 (bear) to $81.83 (bull), the price of $88.99 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 10% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at −34%, SO screens cheaper than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($0.6559 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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.Evidence
Highest evidence
Residual Income best evidence$29.77$34.56$57.8474
EPVn/a$7.39$15.3368
ROIC Compoundern/a$7.39$15.3368
All 15 models by family
Earnings-Based
Graham-Dodd$26.19$68.23$88.9865
PEG = 1.0$12.97$18.52$24.0857
EPVn/a$7.39$15.3368
Dividend Discount
Gordon GGM$24.56$49.26$81.0066
DDM Multi-Stage$24.56$37.75$51.9266
Multiples
P/E Multiple$51.99$69.31$86.6463
P/S Multiple$49.10$65.46$81.8358
P/B Multiple$43.13$57.51$71.8855
EV/EBIT$16.45$40.63$64.8261
EV/EBITDA$32.38$61.88$91.3764
EV/Revenuen/a$9.42$29.0950
Asset-Based
NCAV (Graham)$15.97$21.41$31.9554
Economic Profit
Residual Income best evidence$29.77$34.56$57.8474
ROIC Compoundern/a$7.39$15.3368
Growth Earnings
Growth-Adj P/E$41.12$58.74$76.3767
Widest divergence: Growth Earnings ($58.74) versus Economic Profit ($7.39). Highest evidence: Residual Income (74).
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Key figures & financial health
P/E ratio22.8
P/S ratio3.34P/E × margin
EPS (TTM)$3.91price ÷ EPS = P/E 22.8
Dividend yield3.3%payout 75.7%
Net margin14.7%FY2025
Return on equity11.0%TTM
More key figures
Profitability
Return on assets (EBIT)4.1%avg 5y
Operating margin25.8%TTM
Growth
Revenue (TTM)$30.2BTTM
Revenue growth (YoY)+8.0%3y avg +0.3%
EPS growth (YoY)−0.8%
Balance sheet & cash flow
Free cash flow−$3.6BFY2025
Net debt$64.2BFY2025
Figures from reported company fundamentals · as of Sep 9, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality43/100
Of which business quality 40
· Market factors (momentum, volatility) 55
Profitability32
Margins and returns on capital today
Quality Growth38
Are margins and returns improving?
Cashflow50
Earnings quality: real cash, not paper profit
Fin. Strength9
Balance sheet, leverage, solvency risk
Investment49
Disciplined investing over empire-building
Low Volatility98
Calm price path (market factor)
Momentum37
Price trend over the last 3–12 months (market factor)
52W Momentum36
Distance to the 52-week high (market factor)
Net Issuance75
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Southern Company reported revenue of $29.6B in FY2025 versus $23.1B in FY2021, a compound +6.3%/yr. Reported net income was $4.3B in FY2025, compounding +15.9%/yr from FY2021.
Growth Quality 42/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$29.6B
Latest YoY
+10.6%
Avg. revenue growth/yr (3Y) ⓘ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.
+0.3%
Avg. revenue growth/yr (5Y) ⓘ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.
+7.7%
Avg. revenue growth/yr (40Y) ⓘ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.
+3.7%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.0%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+5.7%
Dividend yield3.3%
Trend ⓘ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.5Y 5.7% vs 10Y 4.5%, steady
Operating margin (EBIT) ⓘ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.24.0% (2020) → 24.6% (2025) · steady
Worst earnings drop67% (2017) · in USD
Revenue+6.3%/yr
FY21$23.1B
FY22$29.3B
FY23$25.3B
FY24$26.7B
FY25$29.6B
Net income+15.9%/yr
FY21$2.4B
FY22$3.5B
FY23$4.0B
FY24$4.4B
FY25$4.3B
Character of growth · EPS growth decomposed (2014-2025)+5.0 % p.a.
Revenue per share+2.4 %
of which total revenue +4.3 % · buybacks/dilution −1.8 %
EBIT margin+1.2 %
Tax rate+2.3 %
Residual (interest, one-offs)−1.0 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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.
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
This stockSector peers
VALUE0· sector 1
FUTURE40· sector 32
PAST44· sector 38
HEALTH10· sector 53
DIVIDEND67· sector 64
VALUE 0: the price sits above our fair-value range.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Sep 9, 2026).
Is Southern Company (SO) overvalued or undervalued?
As of Sep 9, 2026, our model estimates a fair value of $58.81 versus a price of $88.99, about −34% upside (overvalued).
What is the fair value of SO?
Our model-based fair value for Southern Company is $58.81 (as of Sep 9, 2026), built from audited fundamentals. The current price: $88.99.
What is the quality score of SO?
Southern Company has a Quality Score of 43/100. 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 Company (SO)?
Our model-based price target is the fair value of $58.81 (as of Sep 9, 2026) from 15 valuation models. Cautious scenario $36.59, optimistic scenario $81.83. It is a calculation from audited fundamentals, not an analyst target.
What is the Southern Company stock forecast for 2026?
Our models put fair value at $58.81, about −34% upside versus a price of $88.99 (overvalued). Cautious scenario $36.59, optimistic scenario $81.83. The calculation is refreshed regularly with new filings.
What is the revenue of Southern Company (SO)?
Southern Company reported trailing-twelve-month revenue of about $30.2B (latest available figure, as of Sep 9, 2026).
What is the net profit margin of SO?
The net profit margin of Southern Company is about 14.5%, meaning it keeps roughly 14.5% of revenue as net income. Based on the latest reported figures.
Does Southern Company pay a dividend?
Southern Company currently shows a dividend yield of about 3.33% relative to its recent price (as of Sep 9, 2026).
What is the intrinsic value of Southern Company (SO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Southern Company it is $58.81 per share (as of Sep 9, 2026), against a price of $88.99. It is the blended result of 15 valuation models (cash flow, earnings, asset, dividend).
Is Southern Company stock overvalued or undervalued in 2026?
As of Sep 9, 2026, SO trades above its calculated fair value: price $88.99, fair value $58.81, a gap of about −34% (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 SO?
No. The price is what the market pays today ($88.99); the fair value is what the company's own numbers justify ($58.81). For Southern Company the two are $30.18 per share apart. That gap is exactly why we show both numbers side by side.
How much is Southern Company worth?
The market values Southern Company at about $108B (market capitalisation, as of Sep 9, 2026). Per share that is $88.99; our models calculate a fair value of $58.81 per share.
What do the bullish and bearish scenarios say about SO?
Our models span a range for Southern Company: cautious scenario $36.59, base $58.81, optimistic $81.83 per share (as of Sep 9, 2026, price $88.99). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SO?
Southern Company trades at a price-to-earnings ratio of 22.8 (as of Sep 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $58.81 is built from several models across several years. Other multiples: PEG 2.7, P/B 3.0, P/S 3.6, EV/EBITDA 12.2.
What is the PEG ratio of SO?
The PEG ratio of Southern Company is 2.74 (P/E divided by earnings growth, as of Sep 9, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Southern Company (SO)?
Balance-sheet figures for Southern Company (as of Sep 9, 2026): return on equity 11.0%, debt of 1.80 per unit of equity. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is SO from its 52-week high?
Southern Company trades at $88.99, about 10% below its 52-week high of $98.76 and 8% above the low of $82.46 (as of Sep 9, 2026). Distance from the high says nothing about value: that is what the fair value of $58.81 is for.
Which stocks are comparable to Southern Company?
From the same area (Utilities) we also value NextEra Energy, Inc, Duke Energy Corporation, National Grid plc, American Electric Power Company, 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 Company stock attractive at the current price?
The data as of Sep 9, 2026: price $88.99, calculated fair value $58.81 (−34%), Quality Score 43/100, from 15 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 SO calculated?
We run Southern Company through 15 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 $58.81, with the spread shown as a cautious and an optimistic scenario.
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Southern Company
SO · US