Excluded
DCF
Free cash flow, growth, discount rate, and terminal growth form an intrinsic value range.
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-Positive free-cash-flow history is shorter than two years.
S
UtilitiesUtilities - Regulated ElectricUnited States
The Southern Company (SO) Valuation Assumptions
Review The Southern Company (SO) valuation assumptions across intrinsic value, DCF, reverse DCF implied growth, EV/EBITDA, P/FCF, and financial trends.
NYQ · US · USD
Latest price91.80 USD
30D-5.73%
Price vs model medianLimited model referenceModel median is the median base output from applicable absolute models, excluding Reverse DCF.
Quick answer
What growth is the market currently pricing into SO?
At 91.80 USD, TickerVal's reverse DCF setup implies roughly 26.0% annual FCF growth for 10 years for SO, using the current normalized FCF base, a 8% discount rate, and 3.0% terminal growth. The rest of the page shows valuation assumptions, model differences, and source-data context for research reference.
What price implies
What does the current price imply?
At 91.80 USD, the model implies roughly 26.03% annual FCF growth for 10 years, with required long-term operating margin near 21.92% and terminal growth around 3%. This module is a research reference.
Implied FCF CAGR26.03%
10-year Reverse DCF scenario
Required long-term operating margin21.92%
Five-year median × 0.95
Implied terminal growth3%
From current model assumptions
Discount rate assumption8%
Estimated from current sector rules
Adjust assumptions+
Adjust assumptions
Move assumptions to see how the current price implied conditions change.
Forecast horizon10Y
Historical implied expectations
How does today's implied growth compare with history?
Calculated from selected historical prices and current normalized FCF assumptions, not a full point-in-time backtest.
Current implied FCF CAGR26%
5Y monthly median21.62%
Current vs 5Y median+4.38 pts
Showing 8 of 13 report price anchors
| Report price anchor | Price date | Anchor price | Implied FCF CAGR |
|---|---|---|---|
| Q1-2026 | 2026/03/31 | 96.52 USD | 26.71% |
| FY2025 | 2025/12/31 | 86.52 USD | 25.23% |
| Q1-2026 | 2025/12/31 | 86.52 USD | 25.23% |
| Q3-2025 | 2025/09/30 | 93.26 USD | 26.25% |
| Q2-2025 | 2025/06/30 | 89.66 USD | 25.71% |
| Q1-2026 | 2025/03/31 | 89.03 USD | 25.62% |
| FY2024 | 2024/12/31 | 79.03 USD | 24.01% |
| Q3-2025 | 2024/12/31 | 79.03 USD | 24.01% |
202626.71%
Avg 26.37% · Samples 5
202525.66%
Avg 25.61% · Samples 12
202423.71%
Avg 23.39% · Samples 12
202320.98%
Avg 20.92% · Samples 12
Historical valuation multiples
How have EV/EBITDA and P/FCF changed over the last 5 years?
Annual fiscal-period anchored: month-end prices are paired with the most recent annual fiscal period ending on or before each date, covering the last 5 years (61 monthly samples). Multiples are research references; financial-sector or otherwise non-comparable companies require sector-specific context.
P/E
Market cap divided by reported net income (annual fiscal-period snapshot).
23.45x
Near median · P68
Current5Y medianTypical range IQR
5Y median22.1x
Current23.45x · P68
5Y low 17.32xCurrent vs median+6.1%5Y high 30.28x
IQR 19.05–24.66x · 61 monthly samples
P/FCF
Market cap divided by reported free cash flow.
120x
Near median · P63
Current5Y medianTypical range IQR
5Y median118x
Current120x · P63
5Y low 105xCurrent vs median+1.19%5Y high 123x
IQR 116–121x · 12 monthly samples
EV/EBITDA
Enterprise value (market cap + debt − cash) divided by EBITDA.
7.07x
Near median · P52
Current5Y medianTypical range IQR
5Y median7x
Current7.07x · P52
5Y low 6xCurrent vs median+1.03%5Y high 8.21x
IQR 6.63–7.49x · 41 monthly samples
Month-end historical multiples
A date-friendly view for historical EV/EBITDA, P/FCF, and P/E queries.
Showing 8 of 61 month-end samples
| Month-end | Price | P/E | P/FCF | EV/EBITDA | Fiscal period used |
|---|---|---|---|---|---|
| 2026-05-08 | 91.80 USD | 23.45x | - | 7.07x | 2025-12-31 |
| 2026-04-30 | 96.70 USD | 24.7x | - | 7.45x | 2025-12-31 |
| 2026-03-31 | 96.52 USD | 24.66x | - | 7.44x | 2025-12-31 |
| 2026-02-27 | 97.38 USD | 24.88x | - | 7.51x | 2025-12-31 |
| 2026-01-30 | 88.61 USD | 22.64x | - | 6.82x | 2025-12-31 |
| 2025-12-31 | 86.52 USD | 22.1x | - | 6.66x | 2025-12-31 |
| 2025-11-28 | 90.41 USD | 22.64x | 120x | 7.55x | 2024-12-31 |
| 2025-10-31 | 92.55 USD | 23.17x | 122x | 7.72x | 2024-12-31 |
Valuation overview
How do the valuation assumptions fit together?
The Southern Company (SO) valuation on TickerVal is designed to help readers understand the operating expectations embedded in the current market price. At 91.80 USD, the page brings intrinsic value analysis, DCF outputs, reverse DCF implied growth, EV/EBITDA, P/FCF, and valuation assumptions into one research view within the Utilities sector and the Utilities - Regulated Electric industry. Instead of treating one model as a final answer, TickerVal compares cash-flow, earnings-power, balance-sheet, and relative-multiple lenses so the differences between models are visible. The reverse DCF view currently shows implied growth of 26.0%, while the model median reference sits at a limited composite reference versus the current price. The DCF and reverse DCF sections focus on free cash flow, discount rate, terminal growth, and the long-term growth path implied by the current price. EV/EBITDA and P/FCF provide additional context for capital structure and cash-flow multiples. The financial trends section connects those valuation assumptions back to reported revenue of 30B USD, free cash flow of -3B USD, margins, and balance-sheet facts from public filings. Readers can use the layout to compare assumptions across models before reviewing the underlying source data. This page is intended for transparent research reference, model review, and assumption checking.
Valuation model range vs. current price
Each row shows a model output range, with a vertical line for the current price.
Earnings Power ValueCalculated
60.72 USD-60.72 USD
Graham NumberCalculated · Limited reference
53.52 USD-53.52 USD
Owner EarningsCalculated · Limited reference
12.15 USD-14.75 USD
Current price reference line
Why do valuation models give different answers?
Different models rely on different financial facts. The status blocks show which lenses fit this page data.
| Model | Fit | Context |
|---|---|---|
| DCF | Limited | Useful when recurring free cash flow history exists; sensitive to growth and discount assumptions. |
| Owner Earnings | Limited | Useful when net income, D&A, and capex support owner-earnings scenarios. |
| Reverse DCF | Suitable | Shows the FCF growth implied by current price under stated assumptions. |
| Earnings Power Value | Suitable | Useful for mature operating profit, with limited emphasis on growth. |
| Graham Number | Limited | Works best when EPS and book value are both positive. |
| Dividend Discount Model | Not meaningful | Needs explicit dividend history, which is not included in the current version. |
| Net-Net Liquidation Value | Not meaningful | Requires current asset and liability detail beyond the current data set. |
| PEG | Limited | A quick growth multiple lens when EPS history is positive. |
| EV/EBITDA | Limited | Useful for capital structure context when operating profit is available. |
| P/FCF | Limited | A compact free-cash-flow multiple view for positive FCF years. |
| P/B | Limited | More useful for asset-heavy balance sheets than asset-light companies. |
| P/S | Limited | A revenue multiple lens when profit or FCF is not stable. |
| Peer Comparison | Not meaningful | Standardized peer comparisons are not included in the current version. |
Which valuation models are being calculated?
Hover each model row to inspect formulas and inputs.
Current price91.80 USD
Model median referenceLimited model reference
Price vs model medianLimited model reference
Price date2026/05/08
The aggregated models are mostly limited-reference views, so the composite range bar is not shown.
Calculated
Owner Earnings
Uses net income, D&A, and capex as an owner-earnings proxy.
12.15 USD13.76 USD14.75 USD
13.76 USDCurrent price is 567.2% above the base model value.Adjusted reference: 118.12 USD
Calculated
Reverse DCF
Solves the forward FCF growth rate implied by the current price.
Implied growth26.0%
Current price implies roughly 26.0% annualized FCF growth.
26.0%Current price implies roughly 26.0% annualized FCF growth.
Calculated
Earnings Power Value
Estimates earnings power value without assuming growth.
60.72 USD60.72 USD60.72 USD
+51.19%
60.72 USDCurrent price is 51.2% above the base model value.
Updated: 2026/05/10
Which financial trends support the assumptions?
Annual financial metrics with switchable views. · Unit: USD
FY2025 · Dec 2025 report14 records
Revenue30B USD
Net income4B USD
Free cash flow-3B USD
CapEx13B USD
Operating cash flow10B USD
Valuation basis and non-recurring items
Collapsed by default. Expand to inspect structured one-time items and adjusted figures without making them the primary page focus.
ExpandCollapse
Valuation basis and non-recurring items
Collapsed by default. Expand to inspect structured one-time items and adjusted figures without making them the primary page focus.
A positive amountAfterTax means the item increased reported net income; a negative value means it reduced reported net income. Adjusted net income = reported net income minus total after-tax impact. Valuation defaults to reported figures; adjusted figures are shown to observe one-time-item impact.
| Period | Item | Category | After-tax impact | Confidence |
|---|---|---|---|---|
| 2025/12/31 | Other special charges | Other | -269M USD | Medium |
| 2025/12/31 | Special income/charges | Other | 269M USD | Medium |
| 2024/12/31 | Other special charges | Other | -186M USD | Medium |
| 2024/12/31 | Special income/charges | Other | 186M USD | Medium |
| 2023/12/31 | Other special charges | Other | -212M USD | Medium |
| 2023/12/31 | Special income/charges | Other | 212M USD | Medium |
| 2022/12/31 | Business sale gain/loss | Asset sale gain/loss | 45M USD | Medium |
| 2022/12/31 | Other special charges | Other | -177M USD | Medium |
| 2022/12/31 | Special income/charges | Other | 177M USD | Medium |
| 2022/12/31 | Write-off | Impairment | -198M USD | Medium |
| 2021/12/31 | Asset impairment | Impairment | -133M USD | Medium |
| 2020/12/31 | Asset impairment | Impairment | -166M USD | Medium |
| 2026/03/31 | Other special charges | Other | -96M USD | Medium |
| 2026/03/31 | Special income/charges | Other | 96M USD | Medium |
| 2025/12/31 | Other special charges | Other | -77M USD | Medium |
| 2025/12/31 | Special income/charges | Other | 77M USD | Medium |
| 2025/09/30 | Other special charges | Other | -71M USD | Medium |
| 2025/09/30 | Special income/charges | Other | 71M USD | Medium |
| 2025/06/30 | Other special charges | Other | -63M USD | Medium |
| 2025/06/30 | Special income/charges | Other | 63M USD | Medium |
| 2025/03/31 | Other special charges | Other | -58M USD | Medium |
| 2025/03/31 | Special income/charges | Other | 58M USD | Medium |
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Which reported financials feed the models?
Financial DetailsShowing latest 5 / 14
| Period | Type | Revenue | Net Income | Adjusted net income | Free Cash Flow | Diluted EPS | Adjusted EPS |
|---|---|---|---|---|---|---|---|
| 2025/12/31 | Annual | 30B USD | 4B USD | 4B USD | -3B USD | 3.92 | 3.92 |
| 2024/12/31 | Annual | 27B USD | 4B USD | 4B USD | 833M USD | 3.99 | 3.99 |
| 2023/12/31 | Annual | 25B USD | 4B USD | 4B USD | -2B USD | 3.62 | 3.62 |
| 2022/12/31 | Annual | 29B USD | 4B USD | 4B USD | -2B USD | 3.26 | 3.4 |
| 2021/12/31 | Annual | 23B USD | 2B USD | 3B USD | -1B USD | 2.24 | 2.36 |
Where does this data come from?
Open to inspect field-level SEC EDGAR source, filing form, and derived notes.
SEC EDGAR
Where does this data come from?
Open to inspect field-level SEC EDGAR source, filing form, and derived notes.
Frequently asked questions
Quick notes on price-implied expectations, model differences, and source data.
What is The Southern Company's intrinsic value?
The Southern Company's intrinsic value on TickerVal is reviewed through DCF outputs, reverse DCF implied growth, EV/EBITDA, P/FCF, valuation assumptions, and financial trends from public filings.
How is SO valued on TickerVal?
TickerVal values SO by comparing intrinsic value models, DCF and reverse DCF assumptions, cash-flow multiples, earnings-power references, and reported financial trends.
What does the current stock price imply?
The reverse DCF view estimates the free-cash-flow growth path implied by the current stock price under stated discount-rate and terminal-growth assumptions.
Which valuation models are used?
TickerVal uses DCF, reverse DCF, Owner Earnings, EPV, Graham Number, EV/EBITDA, P/FCF, P/B, P/S, and other model references where the underlying data is available.
Is this investment advice?
No. TickerVal does not provide investment advice, ratings, price targets, or buy/sell recommendations.
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