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Southern Company’s Valuation Compared to Its Peers

Vincent Kruger
Southern Company’s Valuation Compared to Its Peers

Top-regulated utility Southern Company (SO) stock is currently trading at a forward PE ratio of 14x based on the estimated EPS for the next year. Southern Company’s forward PE ratio is lower than its peers’ average forward PE ratio and Southern Company’s five-year historical average PE ratio. Southern Company appears to be trading at a discount compared to its historical valuation and its peers. However, the company looks expensive considering the estimated EPS growth of 1% for 2019.