Is The Southern Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Southern Co. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is considered overvalued based on its current metrics. The P/E ratio stands at 23, while the EV to EBITDA ratio is 12.96, and the PEG ratio is 3.02, all suggesting that the stock is priced higher relative to its earnings and growth potential compared to peers.
In comparison to its peers, The Southern Co. has a P/E ratio of 25.19, which is higher than American Electric Power Co., Inc. at 16.05, indicating a significant premium. Additionally, Constellation Energy Corp. shows an EV to EBITDA of 15.42, further highlighting the relative overvaluation of The Southern Co. Despite a strong year-to-date return of 18.80% compared to the S&P 500's 13.30%, the longer-term performance shows a stark underperformance, with a 3-year return of 52.15% versus the S&P 500's 81.19%, reinforcing the notion of overvaluation.