The Southern Company (SOJC) Fair Value & Analysis
Materials · US · Market cap $21.8B
The Southern Company
SOJC · US
Fair value as of: Jul 9, 2026
From 13 valuation models · updated 29 days ago
Fair value updated Jul 9, 2026, revised from $69.21 to $53.59 (−22.6%) since Jun 25, 2026. Share price −2.0% over the past month.
Below-average quality, screening 166% undervalued on our models.
What matters now
- The price is below even our cautious bear case ($29.98). The market is more pessimistic than our downside scenario.
- Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range ($29.98 to $74.17) 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 Jul 9, 2026.
How to read this chart
60‑month range $16.58 – $22.94 · fair‑value band $29.98 – $74.17 · the $20.11 price screens below the $53.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 9, 2026.
Analysis
The Southern Company (SOJC) currently trades at $20.11, while our model-based Fair Value estimate is $53.59, implying the stock looks roughly 166.5% undervalued today. We read business quality at 48/100 (below-average quality), in the Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.
Net debt stands at $73.7B. The stock trades on a trailing P/E of 25.2. Fundamentals as of Jul 9, 2026
Our scenario range runs from $29.98 (bear case) to $74.17 (bull case); at $20.11, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 5 Materials peers we cover trades at -14% fair-value upside, at 166%, SOJC screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 13 models by family
Widest divergence: Multiples ($69.62) versus Asset-Based ($22.27). Highest evidence: Residual Income (76).
Key figures & financial health
Figures from reported company fundamentals · as of Jul 9, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 44 · Market factors (momentum, volatility) 48
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.
About the company
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.
Full company description
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also constructs, acquires, owns, and manages power generation assets, including renewable energy facilities and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland, as well as provides gas marketing services, wholesale gas services, and gas midstream operations. It owns and/or operates 33 hydroelectric generating stations, 29 fossil fuel generating stations, 3 nuclear generating stations, 15 combined cycle/cogeneration stations, 35 solar facilities, 8 wind facilities, 1 biomass facility, and 1 landfill gas facility; and constructs, operates, and maintains 82,000 miles of natural gas pipelines and 14 storage facilities with total capacity of 158 Bcf to provide natural gas to residential, commercial, and industrial customers. The company has 46,000 megawatts of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput volume serving 9 million electric and gas utility customers. It also provides products and services in the areas of distributed generation infrastructure, energy efficiency, and utility infrastructure. In addition, the company offers digital wireless communications services with various communication options, including push to talk, cellular service, text messaging, wireless Internet access, and wireless data. The Southern Company was founded 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
The 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 +16.1%/yr from FY2021.
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Southern projects 2026 adjusted EPS near top of $4.50-$4.60 range as OpenAI signs 3.2-gigawatt contract
- Southern Company outlines 8% annual electric sales growth target through 2029 as large load contracts accelerate
Peer Group
Materials · 3461 stocks
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.)
Valuation Multiples vs Materials median · lower = cheaper
Snowflake
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
5 more Electric Utilities stocks, each showing price versus our Fair Value estimate (as of Jul 9, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SOJE SOJE | $16.91 | $18.75 | +11% |
| Entergy Mississippi, Inc EMP | $20.09 | $21.43 | +7% |
| Veer Energy & Infrastructure Limited 503657 | ₹12.46 | ₹3.02 | -76% |
| PSLVU PSLVU | $18.57 | $15.95 | -14% |
| SPPPU SPPPU | $12.66 | $10.80 | -15% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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