Market Pulse59Neutral

The Southern CompanyOpportunity Rank #66(SO) Intrinsic Value & DCF Analysis (2026)

Sector: Utilities

Current Price

$92.43

Last updated: May 08, 2026

Price vs Intrinsic Value

$92.43
Price
$308.91
Intrinsic Value
Undervalued by 234%MOS: $247.13

Fundamental Score

56/100
Neutral

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

Trend Score

41/100
Weak

As of 2026-05-08

The intrinsic value of The Southern Company (SO) is estimated at $308.91 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $92.43, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.98% long-term growth rate and an 8.50% discount rate (calculated: 6.40%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of The Southern Company (SO) is estimated at $308.91 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $92.43, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.98% long-term growth rate and an 8.50% discount rate (calculated: 6.40%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$308.91
▲ 234.21% upside
20% margin of safety: $247.13
Years: 10Growth Rate: 3.98%
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Capital Efficiency

Average Quarterly ROIC
1.88%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

56/100
NeutralWeighted across 6 signals
DCF Discount
234.2% discount to price
100
FCF Yield
22.4% trailing FCF yield
100
ROIC vs WACC
ROIC 1.9% vs WACC 11.0% (0.2x)
9
Net Debt / FCF
3.1x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
10.6% 5Y FCF CAGR
78
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:High (90th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 99%Updated: 16h ago
Sources: 105 (96 News · 9 Analyst)
Drivers(last 30 days)
63 news sentiment+2.0
27 regulatory scrutiny+0.8
3 earnings beat+0.6
2 upgrade headlines+0.2
Analyst downgrades-0.1
Downgrade headlines+0.0

Trend Details

41/100
WeakAs of 2026-05-08311 daily bars used
Distance from 52-Week High-7.9%
6M Relative Strength vs SPY-8.4%
3M Relative Strength vs SPY-4.9%
Price vs 21 EMA33 · -2.8%
Price vs 50 EMA36 · -2.9%
21 EMA vs 50 EMA50 · -0.0%
3M RS vs SPY31 · -4.9%
6M RS vs SPY28 · -8.4%
Distance from 52W High84 · -7.9%

Investment Coach

Updated 14h ago
BUYConfidence: 61%
Thesis
The Southern Company is significantly undervalued with an estimated fair value over 235% above its current price, supported by strong narrative momentum and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company's free cash flow yield and growth prospects present a compelling buy opportunity.
Key Risk
The key risk is the company's return on invested capital remaining below its weighted average cost of capital, which could undermine value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 3.98%5 Year CAGR: 11.75%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$23,373$23,194$18,743$16,648$14,225$13,409$14,137$13,336$14,946$13,818$12,204$13,667$11,792$11,560$9,707$10,428$8,077$7,933$7,359$6,940$5,814

How Intrinziq Estimates Fair Value

Intrinziq estimates The Southern Company's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

The Southern CompanyUtilities

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services segments. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations. In addition, it owns and/or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facility; and constructs, operates, and maintains 76,289 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 8.7 million electric and gas utility customers. Further, the company offers digital wireless communications and fiber optics services. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.