Is The Southern Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Southern Co. moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its valuation ratios, including 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, The Southern Co. has a higher P/E ratio than American Electric Power Co., Inc. at 16.05 and Duke Energy Corp. at 18.96, which suggests that it is trading at a premium relative to some competitors.
In terms of recent performance, The Southern Co. has underperformed the S&P 500 over the 1-week period with a return of -0.50% compared to the index's 1.70%, but it has outperformed over the year-to-date with an 18.80% return versus the S&P 500's 13.30%. Overall, the combination of high valuation ratios and mixed recent performance suggests that The Southern Co. may not be an attractive investment at its current price.