Southern Company (SO) Fair Value & Analysis
Utilities · US · Market cap $108B · ISIN US8425871071
What is Southern Company really worth?
Southern Company
SO · US
Below-average quality, and trading another 51% above our fair value of $58.81.
Strengths
Risks
For context
Fair value as of: Sep 1, 2026
From 15 valuation models · updated 4 days ago
Share price −4.8% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
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 1, 2026.
How to read this chart
60‑month range $50.27 – $98.30 · fair‑value band $36.59 – $81.83 · the $88.77 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 1, 2026.
Analysis
Southern Company (SO) currently trades at $88.77, while our model-based Fair Value estimate is $58.81, implying the stock looks roughly 50.9% 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 $88.77 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 1, 2026
Our scenario range runs from $36.59 (bear case) to $81.83 (bull case); at $88.77, the current price sits above 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 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
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.6455 per share, which is 1.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 15 models by family
Widest divergence: Growth Earnings ($58.74) versus Economic Profit ($7.39). Highest evidence: Residual Income (74).
Notify me when SO reaches fair value
Put SO on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.
Set up alert →Free, no payment details. Unsubscribe anytime in one click.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 54
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.
of which total revenue +4.3 % · buybacks/dilution −1.8 %
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).
SO screens 51% overvalued. Compare with NextEra Energy, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Southern (SO) Following The OpenAI Power Deal Is Valuation Back In Focus
- Southern's Unit Wins Regulatory Approval for OpenAI Power Deal
- Southern (SO) Stock May Trade At A Discount After AI Power Deal Approval
Peer Group
Utilities - Regulated Electric · 153 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper
Strength profile in five axes (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.
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.
Similar stocks
10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| NextEra Energy, Inc NEE | $83.47 | $32.94 | −61% |
| Duke Energy Corporation DUK | $120.25 | $74.89 | −38% |
| National Grid plc NGG | $80.68 | $63.94 | −21% |
| American Electric Power Company AEP | $122.96 | $77.23 | −37% |
| Dominion Energy, Inc D | $66.01 | $46.34 | −30% |
| Entergy Corporation ETR | $105.75 | $52.92 | −50% |
| Xcel Energy Inc XEL | $76.34 | $44.61 | −42% |
| Exelon Corporation EXC | $43.96 | $37.60 | −14% |
| Endesa, S.A ELE | €42.30 | €25.72 | −39% |
| Consolidated Edison, Inc ED | $107.70 | $62.35 | −42% |
Compare Southern Company with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Utilities stocks →
Try a ready-made strategy
Pick a strategy and jump into the live analysis with that exact screen applied.
Discover tools
Frequently asked questions
Is Southern Company (SO) overvalued or undervalued?
What is the fair value of SO?
What is the quality score of SO?
What is the revenue of Southern Company (SO)?
What is the net profit margin of SO?
Does Southern Company pay a dividend?
Watch Southern Company in the live analysis
One click puts Southern Company on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Watch for free →Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.