Is Southern (SO) Still Attractive After Steady Multi‑Year Share Price Gains?

Simply Wall St.01-14

If you are wondering whether Southern's current share price still offers value or is starting to look stretched, you are not alone. The stock last closed at US$87.55, with returns of 0.0% over 7 days,...

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The stock last closed at US$87.55, with returns of 0.0% over 7 days,...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/is-southern-so-still-attractive-after-steady-multiyear-share\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Southern (SO) Still Attractive After Steady Multi‑Year Share Price Gains?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Southern (SO) Still Attractive After Steady Multi‑Year Share Price Gains?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-14 07:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/is-southern-so-still-attractive-after-steady-multiyear-share><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Southern's current share price still offers value or is starting to look stretched, you are not alone. The stock last closed at US$87.55, with returns of 0.0% over 7 days,...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/is-southern-so-still-attractive-after-steady-multiyear-share\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1621767737.EUR","symbol_name":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (EUR) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/is-southern-so-still-attractive-after-steady-multiyear-share","article_id":"2603663195","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/120623-main-header/1756253790455"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-so/southern/news/is-southern-so-still-attractive-after-steady-multiyear-share","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603663195","pubTimestamp":1768348150,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Southern's current share price still offers value or is starting to look stretched, you are not alone.\nThe stock last closed at US$87.55, with returns of 0.0% over 7 days, 3.7% over 30 days, 0.4% year to date, 10.3% over 1 year, 39.4% over 3 years and 73.2% over 5 years.\nRecent interest in Southern has been supported by ongoing investor focus on US utilities and how they are positioned for long term capital needs and regulation. Sector level headlines around grid...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1621767737.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (EUR) ACC","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","LU1732800096.USD":"摩根大通环球收益基金A (irc)","BK4588":"碎股","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU1621767810.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A\" (EUR) INC","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","LU1621768115.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"B\" (EUR) INC","IE00BMG7P587.USD":"LEGG MASON CLEARBRIDGE GLOBAL INFRASTRUCTURE INCOM \"A\" (USD) INC","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU0726765562.USD":"JPM GLOBAL INCOME \"A\" (USD HEDGED) INC","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU2384288077.EUR":"AZ EQUITY GLOBAL INFRASTRUCTURE \"A-INS\" (EUR) ACC","LU2347655156.SGD":"JPMorgan Investment Funds - Global Income A (icdiv) SGD-H","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4585":"ETF&股票定投概念","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","IE00BMG7P926.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Acc USD","LU1621768206.USD":"AZ EQUITY GLOBAL INFRASTRUCTURE \"AAZ\" (USD) ACC","LU2347655073.USD":"JPM GLOBAL INCOME \"A\" (USDHDG) INC A","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU1929549753.HKD":"FRANKLIN INCOME \"A\" (HKD) INC","LU0070217475.USD":"JPM GLOBAL SELECT EQUITY \"A\" ACC","IE00B29SXL02.USD":"FIRST SENTIER GLOBAL LISTED INFRASTRUCTURE \"I\" (USD) INC","IE00BMG7P694.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis USD Plus","SO":"美国南方公司","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","IE00B29SXK94.USD":"FIRST SENTIER GLOBAL LISTED INFRASTRUCTURE \"I\" (USD) ACC","BK4081":"电力公用事业","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC"},"translate_title":"南方航空(SO)股价连续多年稳定上涨后仍然具有吸引力吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"SO":1.5},"content_text":"If you are wondering whether Southern's current share price still offers value or is starting to look stretched, you are not alone. The stock last closed at US$87.55, with returns of 0.0% over 7 days, 3.7% over 30 days, 0.4% year to date, 10.3% over 1 year, 39.4% over 3 years and 73.2% over 5 years. Recent interest in Southern has been supported by ongoing investor focus on US utilities and how they are positioned for long term capital needs and regulation. Sector level headlines around grid reliability, energy transition spending and regulatory stability have kept attention on companies like Southern as investors reassess risk and required returns. Southern currently has a value score of 4/6. This reflects how it screens across several common valuation checks. Next we will walk through those approaches before finishing with a more complete way to think about what the stock could be worth.  Find out why Southern's 10.3% return over the last year is lagging behind its peers. AdvertisementApproach 1: Southern Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and then discounting them back to today using a required rate of return. For Southern, the model used is a 2 Stage Free Cash Flow to Equity approach. On a last twelve month basis, the company reported free cash flow of $1,011.35 million loss, so the DCF leans heavily on future estimates rather than recent cash generation. Analyst and extrapolated projections suggest free cash flow of $593 million in 2026 and $2,161 million in 2027. Simply Wall St then extends these forecasts further, with projected free cash flow of about $17,160.41 million in 2035, all expressed in US$ and discounted back to today. Adding up these discounted cash flows produces an estimated intrinsic value of about US$254.55 per share. Compared with the recent share price of US$87.55, this valuation suggests the stock is trading at a discount of 65.6% to the model’s estimate of intrinsic value on this cash flow view. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Southern is undervalued by 65.6%. Track this in your watchlist or portfolio, or discover 884 more undervalued stocks based on cash flows. SO Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Southern. Approach 2: Southern Price vs Earnings For a profitable company like Southern, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. Investors usually accept a higher or lower P/E depending on what they expect for future earnings growth and how much risk they see in the business. Southern currently trades on a P/E of 21.62x. That sits above the Electric Utilities industry average P/E of 20.18x, but below the peer group average of 26.46x. On the surface, that puts Southern somewhere in the middle of the pack compared with similar names. Simply Wall St also calculates a “Fair Ratio” of 24.05x for Southern. This is a proprietary estimate of what the P/E could be, given factors such as the company’s earnings growth profile, its industry, profit margins, market cap and key risks. Because it brings these company specific features together, the Fair Ratio can be more useful than a simple comparison to industry or peer averages. With Southern’s actual P/E of 21.62x sitting below the Fair Ratio of 24.05x, this multiple based view suggests the shares may be trading at a discount to that fair value estimate. Result: UNDERVALUED NYSE:SO P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Southern Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your own story about Southern that links what you believe about its future revenue, earnings and margins to a forecast and a fair value. On Simply Wall St’s Community page you can use this tool, already used by millions of investors, to compare that fair value to the current price and see whether your story points you toward buying or selling. Each Narrative updates automatically when new information like news, earnings or changes such as the most bullish fair value view of about US$108 per share or the most cautious view of about US$75 per share appears. Two investors could look at the same company, plug in different assumptions, and quickly see how their different stories lead to different fair values. Do you think there's more to the story for Southern? Head over to our Community to see what others are saying! NYSE:SO 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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