Southern Company’s Valuation Compared to Its Peers
Let’s take a look at whether Southern Company (SO) stock looks attractive from the valuation perspective after its recent weakness. Currently, Southern Company is trading at a forward PE ratio of 14x based on the estimated EPS for 2019. Peers’ average forward PE ratio is close to 16x. Southern Company’s five-year historical average PE ratio is close to 16x. Southern Company seems to be trading at a discount compared to its historical valuation. However, the company looks expensive considering the estimated EPS growth of 1% for 2019.