Is The Southern Co. overvalued or undervalued?

As of 27 June 2025, The Southern Co. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 23, an EV to EBITDA of 12.96, and a PEG ratio of 3.02, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, The Southern Co. has a P/E ratio that is lower than NextEra Energy, Inc. at 35.78 but higher than Duke Energy Corp. at 18.26. Additionally, the EV to EBITDA ratio is on par with its own valuation, while Exelon Corp. presents a more favorable EV to EBITDA at 10.70. Despite a recent stock return of 16.48% over the past year, which outperformed the S&P 500's 12.59%, the overall valuation metrics indicate that The Southern Co. remains overvalued in the current market context.