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 19.42 is considered Fairly compared with the five-year average of 19.34. The fair price of Southern Co (SO) is between 83.36 to 94.02 according to relative valuation methord.
Relative Value
Fair Zone
83.36-94.02
Current Price：87.98
Fair
19.28
PE
1Y
3Y
5Y
Trailing
Forward
12.77
EV/EBITDA
Southern Co. (SO) has a current EV/EBITDA of 12.77. The 5-year average EV/EBITDA is 13.32. The thresholds are as follows: Strongly Undervalued below 11.51, Undervalued between 11.51 and 12.41, Fairly Valued between 14.22 and 12.41, Overvalued between 14.22 and 15.13, and Strongly Overvalued above 15.13. The current Forward EV/EBITDA of 12.77 falls within the Historic Trend Line -Fairly Valued range.
19.70
EV/EBIT
Southern Co. (SO) has a current EV/EBIT of 19.70. The 5-year average EV/EBIT is 22.26. The thresholds are as follows: Strongly Undervalued below 17.59, Undervalued between 17.59 and 19.92, Fairly Valued between 24.60 and 19.92, Overvalued between 24.60 and 26.93, and Strongly Overvalued above 26.93. The current Forward EV/EBIT of 19.70 falls within the Undervalued range.
3.17
PS
Southern Co. (SO) has a current PS of 3.17. The 5-year average PS is 3.07. The thresholds are as follows: Strongly Undervalued below 2.46, Undervalued between 2.46 and 2.77, Fairly Valued between 3.37 and 2.77, Overvalued between 3.37 and 3.68, and Strongly Overvalued above 3.68. The current Forward PS of 3.17 falls within the Historic Trend Line -Fairly Valued range.
9.11
P/OCF
Southern Co. (SO) has a current P/OCF of 9.11. The 5-year average P/OCF is 9.06. The thresholds are as follows: Strongly Undervalued below 7.70, Undervalued between 7.70 and 8.38, Fairly Valued between 9.73 and 8.38, Overvalued between 9.73 and 10.41, and Strongly Overvalued above 10.41. The current Forward P/OCF of 9.11 falls within the Historic Trend Line -Fairly Valued range.
-166.74
P/FCF
Southern Co. (SO) has a current P/FCF of -166.74. The 5-year average P/FCF is 31.51. The thresholds are as follows: Strongly Undervalued below -195.03, Undervalued between -195.03 and -81.76, Fairly Valued between 144.77 and -81.76, Overvalued between 144.77 and 258.04, and Strongly Overvalued above 258.04. The current Forward P/FCF of -166.74 falls within the Undervalued range.
Southern Co (SO) has a current Price-to-Book (P/B) ratio of 2.77. Compared to its 3-year average P/B ratio of 2.68 , the current P/B ratio is approximately 3.16% higher. Relative to its 5-year average P/B ratio of 2.60, the current P/B ratio is about 6.45% higher. Southern Co (SO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -1.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.41% , the current FCF yield is about -100.00% lower.
2.75
P/B
Median3y
2.68
Median5y
2.60
-1.88
FCF Yield
Median3y
-1.47
Median5y
-1.41
Competitors Valuation Multiple
The average P/S ratio for SO's competitors is 2.81, providing a benchmark for relative valuation. Southern Co Corp (SO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 7.55%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SO increased by 6.99% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 7.27B to 7.82B.
The secondary factor is the Margin Expansion, contributed 3.41%to the performance.
Overall, the performance of SO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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