What is The Southern Company (SO) DCF Fair Value and Intrinsic Value in 2026?

The Southern Company (SO) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is The Southern Company's historical Return on Invested Capital (ROIC) and Moat Rating?

The Southern Company operates in the Utilities sector (Utilities - Regulated Electric) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is The Southern Company's financial health rating and Piotroski F-Score?

The Southern Company's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor The Southern Company (SO) for quarterly SEC filing thesis breaks?

LocalAlpha audits The Southern Company's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksSO

SO

Southern Company (The)Utilities / Utilities - Regulated ElectricINTACT

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

Share Price

$87.17

52W: $83.8 - $100.84

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

21x

ROIC

22.2%

Operating Margin

29.6%

FCF Yield

-3.9%

Debt / Equity

1.82x

Piotroski Score

4/9

Altman Z-Score

2.2

Market Cap

$100.3B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($116.79) Graham Number ($56.67)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$87.17

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$-3,913M (Reported)$50,000M

Stage 1 Growth (Years 1-5)14.8%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$74,100M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$1.2B

PV of Terminal Value

$1.7B

Implied Enterprise Value

$2.8B

Implied Equity Value

$-71.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$115	$132	$151	$174	$199	$208	$218	$228	$238	$248
Present Value (PV)	$105	$111	$117	$123	$130	$124	$119	$114	$109	$105

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-53.8% Premium

$56.68

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $4.15BVPS: $34.40

Revised Graham Formula+25.4% MoS

$116.79

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings-3.7% Yield

$-3.23 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $-3.7BYield: -3.7%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.0% CAGR (Next 10 Yrs)

At the current price of $87.17, the market is assuming the business will compound Free Cash Flow at 0.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil SO with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Southern Company (The). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 29.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Southern Company (The) (SO) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Southern Company (The).

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Southern Company (The) has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $87.17. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $56.67.