Is Southern Company (SO) overvalued?
On Equity Rank's model estimate, SO trades 32% above its fair value. Southern Company (SO) last closed at $92.34; the multi-method model fair value is $69.87.
| Price | Model fair value | Price vs model |
|---|---|---|
| $92.34 | $69.87 | 32% above |
What the answer rests on
- 0 of 11 valuation methods put SO's value above its price and 11 put it below, so the methods mostly agree.
- SO trades at 22.4 times its last year's earnings, against a median of 21.1 for 66 profitable Utilities companies.
- Over the past year the price sat below the model fair value on 6% of trading days. The gap ranged from 4% below to 67% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind SO's fair value · What prices assume · Other companies