Is The Southern Company (SO) Undervalued?
Based on the current stock price of $87.17 and a P/E ratio of 21.68,The Southern Company has a PEG ratio of 3.68.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.68, SO appears to be potentially overvalued relative to its growth rate of 5.90%.
Based on a PEG ratio of 2.33 (adjusted for dividends).
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How we analyzed SO
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 21.68and dividing it by the annual growth rate of 5.90%.
PEG = 21.68 (P/E) ÷ 5.90 (Growth) = 3.68
Frequently Asked Questions about SO
What is the current PEG Ratio for The Southern Company (SO)?+
The current PEG Ratio for The Southern Company is 3.68. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is SO stock undervalued right now?+
Based on the PEG ratio of 3.68, The Southern Company appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for SO?+
The PEGY ratio for The Southern Company is 2.33. This metric accounts for dividend yield (3.40%), providing a more complete valuation picture.