SO Valuation

Southern Co

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94.620

-0.31(-0.327%)1D

Overview
Forecast
Valuation
Earnings

SO Relative Valuation

SO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SO is overvalued; if below, it's undervalued.

Historical Valuation

Southern Co (SO) is now in the Fair zone, suggesting that its current forward PE ratio of 21.17 is considered Fairly compared with the five-year average of 19.16. The fair price of Southern Co (SO) is between 84.77 to 95.56 according to relative valuation methord.

Relative Value

Fair Zone

84.77-95.56

Current Price：94.93

Fair

21.34

Trailing

Forward

13.35

EV/EBITDA

Southern Co. (SO) has a current EV/EBITDA of 13.35. The 5-year average EV/EBITDA is 13.28. The thresholds are as follows: Strongly Undervalued below 11.41, Undervalued between 11.41 and 12.34, Fairly Valued between 14.22 and 12.34, Overvalued between 14.22 and 15.15, and Strongly Overvalued above 15.15. The current Forward EV/EBITDA of 13.35 falls within the Historic Trend Line -Fairly Valued range.

20.93

EV/EBIT

Southern Co. (SO) has a current EV/EBIT of 20.93. The 5-year average EV/EBIT is 22.24. The thresholds are as follows: Strongly Undervalued below 17.49, Undervalued between 17.49 and 19.86, Fairly Valued between 24.61 and 19.86, Overvalued between 24.61 and 26.99, and Strongly Overvalued above 26.99. The current Forward EV/EBIT of 20.93 falls within the Historic Trend Line -Fairly Valued range.

3.53

Southern Co. (SO) has a current PS of 3.53. The 5-year average PS is 3.03. The thresholds are as follows: Strongly Undervalued below 2.42, Undervalued between 2.42 and 2.73, Fairly Valued between 3.34 and 2.73, Overvalued between 3.34 and 3.64, and Strongly Overvalued above 3.64. The current Forward PS of 3.53 falls within the Overvalued range.

9.95

P/OCF

Southern Co. (SO) has a current P/OCF of 9.95. The 5-year average P/OCF is 8.96. The thresholds are as follows: Strongly Undervalued below 7.59, Undervalued between 7.59 and 8.27, Fairly Valued between 9.65 and 8.27, Overvalued between 9.65 and 10.34, and Strongly Overvalued above 10.34. The current Forward P/OCF of 9.95 falls within the Overvalued range.

97.72

P/FCF

Southern Co. (SO) has a current P/FCF of 97.72. The 5-year average P/FCF is 26.24. The thresholds are as follows: Strongly Undervalued below -233.03, Undervalued between -233.03 and -103.40, Fairly Valued between 155.88 and -103.40, Overvalued between 155.88 and 285.51, and Strongly Overvalued above 285.51. The current Forward P/FCF of 97.72 falls within the Historic Trend Line -Fairly Valued range.

Southern Co (SO) has a current Price-to-Book (P/B) ratio of 3.05. Compared to its 3-year average P/B ratio of 2.64 , the current P/B ratio is approximately 15.46% higher. Relative to its 5-year average P/B ratio of 2.55, the current P/B ratio is about 19.32% higher. Southern Co (SO) has a Forward Free Cash Flow (FCF) yield of approximately -1.05%. Compared to its 3-year average FCF yield of -1.50%, the current FCF yield is approximately -29.75% lower. Relative to its 5-year average FCF yield of -1.45% , the current FCF yield is about -27.17% lower.

3.07

P/B

Median3y

2.64

Median5y

2.55

-1.03

FCF Yield

Median3y

-1.50

Median5y

-1.45

Competitors Valuation Multiple

The average P/S ratio for SO's competitors is 3.19, providing a benchmark for relative valuation. Southern Co Corp (SO) exhibits a P/S ratio of 3.53, which is 10.45% above the industry average. Given its robust revenue growth of 7.89%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Centrais Eletricas Brasileiras SA - Eletrobras

Constellation Energy Corp

American Electric Power Company Inc

2.80

11.09%

60.51B

Performance Decomposition

Market capitalization of SO increased by 12.28% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.79 to 24.53.

The secondary factor is the Revenue Growth, contributed 7.89%to the performance.

Overall, the performance of SO in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.89%

6.46B → 6.97B

Revenue Growth

-33.46%

18.38 → 12.23

Margin Expansion

37.85%

17.79 → 24.53

P/E Change

12.28%