The Southern Company

United States of America Country flag United States of America
Sector: Conventional Electricity
Ticker: SO
Factsheet Factsheet

Market multiple valuation of The Southern Company ( SO | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of The Southern Company is slightly higher than the median of its peer group: around 18.00. The company valuation of The Southern Company according to these metrics is consistent with the market valuation of its peer group.
The P/Earnings NTM ratio of The Southern Company is significantly higher than the average of its sector (Conventional Electricity): 11.99. The company valuation of The Southern Company according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of The Southern Company is slightly higher than its historical 5-year average: 17.7. The (current) company valuation of The Southern Company is therefore consistent with its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2021P/E NTM
The Southern CompanyFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Conventional Electricity9.1413.1611.99
DJIA23.3619.8615.82
United States of America0.689.709.41
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Beta (Ref: DJIA)
Levered betaUnlevered beta
1-Year0.610.37
2-Year0.620.38
3-Year0.970.59
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Stock Perf excl. Dividends (in USD)
SODJIARel. Perf.
Year-to-Date-2.4%-5.5%3.0%
1-Week2.0%1.8%0.3%
1-Month1.8%7.9%-6.1%
1-Year6.0%-4.1%10.1%
3-Year7.6%22.4%-14.8%
5-Year30.2%45.8%-15.6%
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International Peers - The Southern Company
Company NameCtryMarket
Cap.
last (mUSD)
The Southern CompanyUSA72 843
International Peers Median0.56
Entergy CorporationUSA23 998
American Electric Power...USA50 114
Exelon CorporationUSA39 819
Duke Energy Corp.USA76 707
Dominion Energy, Inc.USA51 254
GPRV Analysis
The Southern Company
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • The Southern Company
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Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).