SO

Potentially Overvalued

The Southern Company — PEG Ratio Analysis

3.49

PEG Ratio

3.49

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$94.31

TTM EPS

$3.91

P/E Ratio

24.12

Growth Rate

6.9%

5-Year EPS CAGR

Sector

Utilities

Regulated Electric

Calculated

6/17/2026

12:30:50 PM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

1.27

25th Percentile

0.65

75th Percentile

2.27

SO PEG (3.49) vs Industry Median (1.27): 175% premium

Symbol	Company	PEG	P/E	Growth	vs SO
EIX	Edison International	0.18	7.8	42.4%	-95%
DUK	Duke Energy Corporation	0.65	19.3	29.7%	-81%
D	Dominion Energy, Inc.	1.21	20.2	16.7%	-65%
NEE	NextEra Energy, Inc.	1.27	21.9	17.3%	-64%
ED	Consolidated Edison, Inc.	1.59	18.2	11.5%	-54%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.