Is The Southern Co. overvalued or undervalued?

As of 11 September 2025, the valuation grade for The Southern Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its valuation metrics, which include a P/E ratio of 23, a Price to Book Value of 2.87, and an EV to EBITDA of 12.96. In comparison to peers, NextEra Energy, Inc. has a higher P/E of 34.85, while Duke Energy Corp. presents a lower P/E of 18.96, showcasing the varying valuation landscape within the industry.
The Southern Co.'s recent stock performance has lagged behind the S&P 500, with a 1-year return of 2.74% compared to the S&P's 17.14%, and a 3-year return of 18.38% versus the S&P's 70.41%. This underperformance reinforces the notion that the stock is currently overvalued in relation to its peers and the broader market.