Southern Valuation
| SO Stock | USD 94.95 2.39 2.58% |
At this time, the company appears to be overvalued. Southern has a current Real Value of $88.01 per share. The regular price of the company is $94.95. Our model measures the value of Southern from inspecting the company fundamentals such as Operating Margin of 0.37 %, return on equity of 0.11, and Shares Outstanding of 1.1 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Southern's valuation include:
Price Book 2.9118 | Enterprise Value | Enterprise Value Ebitda 12.1706 | Price Sales 3.616 | Forward PE 20.202 |
Overvalued
Today
Please note that Southern's price fluctuation is very steady at this time. Calculation of the real value of Southern is based on 3 months time horizon. Increasing Southern's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Southern is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Southern Stock. However, Southern's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 94.95 | Real 88.01 | Target 95.78 | Hype 94.92 |
The intrinsic value of Southern's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Southern's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Southern Company helps investors to forecast how Southern stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Southern more accurately as focusing exclusively on Southern's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Southern's intrinsic value based on its ongoing forecasts of Southern's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Southern's closest peers.
Southern Cash |
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Southern Revenue by Product
Southern Total Value Analysis
Southern Company is at this time estimated to have takeover value of 172.32 B with market capitalization of 104.55 B, debt of 66.28 B, and cash on hands of 1.07 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Southern fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
172.32 B | 104.55 B | 66.28 B | 1.07 B |
Southern Investor Information
About 74.0% of the company shares are owned by institutional investors. The book value of Southern was at this time reported as 31.79. The company last dividend was issued on the 17th of February 2026. Southern had 10000:6109 split on the 3rd of April 2001. Based on the analysis of Southern's profitability, liquidity, and operating efficiency, Southern Company may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.25 | 0.3 |
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| Total Cash From Operating Activities | 11.8 B | 11.3 B |
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| Operating Income | 3.6 B | 6.4 B |
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Southern Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Southern has an asset utilization ratio of 18.41 percent. This suggests that the Company is making $0.18 for each dollar of assets. An increasing asset utilization means that Southern Company is more efficient with each dollar of assets it utilizes for everyday operations.Southern Profitability Analysis
Considering Southern's profitability and operating efficiency indicators, Southern Company may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Southern's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 880 M | Current Value 1.7 B | Quarterly Volatility 409.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.54 | 0.57 |
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| Net Profit Margin | 0.096 | 0.15 |
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| Operating Profit Margin | 0.25 | 0.3 |
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| Pretax Profit Margin | 0.13 | 0.18 |
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| Return On Assets | 0.0362 | 0.0349 |
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| Return On Equity | 0.13 | 0.15 |
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For Southern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southern utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southern over time as well as its relative position and ranking within its peers.
Southern Earnings per Share Projection vs Actual
The next projected EPS of Southern is estimated to be 1.1397 with future projections ranging from a low of 1.123 to a high of 1.1725. Southern's most recent 12-month trailing earnings per share (EPS TTM) is at 4.12. Please be aware that the consensus of earnings estimates for Southern Company is based on EPS before non-recurring items and includes expenses related to employee stock options.Southern Earnings Estimation Breakdown
The calculation of Southern's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Southern is estimated to be 1.1397 with the future projection ranging from a low of 1.123 to a high of 1.1725. Please be aware that this consensus of annual earnings estimates for Southern Company is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.12 Lowest | Expected EPS | 1.17 Highest |
Southern Earnings Projection Consensus
Suppose the current estimates of Southern's value are higher than the current market price of the Southern stock. In this case, investors may conclude that Southern is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Southern's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 23 | 85.67% | 0.0 | 1.1397 | 4.12 |
Southern Ownership Allocation
Southern shows a total of 1.1 Billion outstanding shares. The majority of Southern outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Southern to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Southern. Please pay attention to any change in the institutional holdings of Southern Company as this could imply that something significant has changed or is about to change at the company. On September 12, 2025, Representative Valerie Hoyle of US Congress acquired under $15k worth of Southern's common stock.Southern Profitability Analysis
The company generated the yearly revenue of 26.72 B. Reported Net Income was 4.26 B with gross profit of 14.17 B.Southern Past Distributions to stockholders
About Southern Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Southern Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Southern based exclusively on its fundamental and basic technical indicators. By analyzing Southern's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Southern's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Southern. We calculate exposure to Southern's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Southern's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 15.3 B | 8.5 B | |
| Pretax Profit Margin | 0.18 | 0.13 | |
| Operating Profit Margin | 0.30 | 0.25 | |
| Net Profit Margin | 0.15 | 0.10 | |
| Gross Profit Margin | 0.57 | 0.54 |
Southern Quarterly Retained Earnings |
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A single share of Southern represents a small ownership stake in the entity. As a stockholder of Southern, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Southern Dividends Analysis For Valuation
At this time, Southern's Dividend Yield is very stable compared to the past year. As of the 14th of February 2026, Dividend Payout Ratio is likely to grow to 0.61, though Dividends Paid is likely to grow to (2.5 B). . At this time, Southern's Earnings Yield is very stable compared to the past year. As of the 14th of February 2026, Price Earnings To Growth Ratio is likely to grow to 1.86, while Retained Earnings are likely to drop about 8.4 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -2.7 B | -2.5 B | |
| Dividend Yield | 0.04 | 0.06 | |
| Dividend Payout Ratio | 0.60 | 0.61 | |
| Dividend Paid And Capex Coverage Ratio | 0.95 | 0.84 |
There are various types of dividends Southern can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Southern shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Southern Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Southern pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Southern by the value of the dividends paid out.
Southern Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 1.1 B | |
| Quarterly Earnings Growth Y O Y | 0.108 | |
| Forward Price Earnings | 20.202 |
Southern Current Valuation Indicators
Southern's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Southern's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Southern, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Southern's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Southern's worth.Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Southern Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Will Electric Utilities sector continue expanding? Could Southern diversify its offerings? Factors like these will boost the valuation of Southern. If investors know Southern will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Southern data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.108 | Dividend Share 2.92 | Earnings Share 4.12 | Revenue Per Share | Quarterly Revenue Growth 0.075 |
Investors evaluate Southern using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Southern's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Southern's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Southern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Southern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Southern's market price signifies the transaction level at which participants voluntarily complete trades.