What Is SO Fair Value?
Southern Company (SO) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Southern Company (SO) has a composite fair value estimate of $74.53 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $88.25, suggesting the stock is overvalued by 15.5%.
Data as of August 29, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$74.53
vs. current price of $88.25(-15.5%)
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 →
$75.86
-14.0%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 →
$112.85
+27.9%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 →
$59.59
-32.5%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.
$45.88
-48.0%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 $88.25 is 14.0% 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 | $3.36B |
| Year 3 | $3.99B | $3.42B |
| Year 4 | $4.27B | $3.48B |
| Year 5 | $4.57B | $3.53B |
| Year 6 | $4.89B | $3.59B |
| Year 7 | $5.23B | $3.65B |
| Year 8 | $5.60B | $3.71B |
| Year 9 | $6.00B | $3.77B |
| Year 10 | $6.42B | $3.83B |
| Terminal Value | $236.17B | $141.11B |
What Are SO's Key Financial Metrics?
Earnings & Growth
Current Price
$88.25
EPS (TTM)
$4.11
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
$79.00
Average
$100.29
High
$114.00
Upside
+13.6%
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 $74.53. The stock is currently trading at $88.25, which makes it overvalued 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 overvalued. The current price of $88.25 is 15.5% above our estimated fair value of $74.53.
What do Wall Street analysts say about SO?
19 analysts cover Southern Company with a consensus rating of "Hold." The average price target is $100.29, ranging from $79.00 to $114.00. This implies 13.6% upside from the current price.