What Is SO Fair Value?
Southern Company (SO) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Southern Company (SO) has a composite fair value estimate of $77.04 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $88.11, suggesting the stock is fair value by 12.6%.
Data as of October 14, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$77.04
vs. current price of $88.11(-12.6%)
How Is SO Fair Value Calculated?
Four independent models estimate what SO is worth. Each uses different inputs and assumptions. The composite blends them by weight.
SO Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$79.81
-9.4%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$118.60
+34.6%Undervalued
Inputs used
SO Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$59.61
-32.3%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$45.91
-47.9%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $88.11 is 9.4% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $3.48B | $3.31B |
| Year 2 | $3.73B | $3.37B |
| Year 3 | $3.99B | $3.43B |
| Year 4 | $4.27B | $3.48B |
| Year 5 | $4.57B | $3.54B |
| Year 6 | $4.89B | $3.61B |
| Year 7 | $5.23B | $3.67B |
| Year 8 | $5.60B | $3.73B |
| Year 9 | $5.99B | $3.79B |
| Year 10 | $6.41B | $3.86B |
| Terminal Value | $243.00B | $146.33B |
What Are SO's Key Financial Metrics?
Earnings & Growth
Current Price
$88.11
EPS (TTM)
$4.15
Forward P/E
17.9
Profit Margin
15.4%
Cash & Balance Sheet
Free Cash Flow
-3.9B
EBITDA
14.3B
Book Value
$34.40
Total Debt
77.1B
What Do Analysts Say About SO?
Low
$74.00
Average
$97.08
High
$112.00
Upside
+10.2%
SO Fair Value FAQ
What is the fair value of SO?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), SO's estimated fair value is $77.04. The stock is currently trading at $88.11, which makes it fair value by our analysis.
How is SO's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is SO overvalued or undervalued?
Based on our analysis, SO is fair value. The current price of $88.11 is 12.6% above our estimated fair value of $77.04.
What do Wall Street analysts say about SO?
19 analysts cover Southern Company with a consensus rating of "Hold." The average price target is $97.08, ranging from $74.00 to $112.00. This implies 10.2% upside from the current price.