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 valuation outlook. The company appears to be overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 2.87, and an EV to EBITDA of 12.96. In comparison, peers such as NextEra Energy, Inc. have a higher P/E of 34.85, while American Electric Power Co., Inc. shows a more favorable P/E of 16.05, suggesting that The Southern Co. is priced at a premium relative to some competitors.
The Southern Co. has delivered a year-to-date return of 18.80%, outperforming the S&P 500's return of 13.30% during the same period, but it lags behind the index over longer horizons, particularly in the 3-year and 5-year comparisons. Overall, these factors reinforce the view that The Southern Co. is overvalued in the current market environment.