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Southern CoSO -0.80%79 Debt-to-EBITDA is 4.84 as of Mar. 2026, which is 14% below its 10-year median of 5.64. GuruFocus rates SO with a GF Score™ of 79/100 and a GF Value™ of $94.24 (Fairly Valued). The stock has 12 warning signs investors should review. Among 449 Utilities - Regulated companies, Southern Co ranks worse than 65.7% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Southern Co's Debt-to-EBITDA or its related term are showing as below:
SO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.19 Med: 5.64 Max: 8.17
Current: 5.24
During the past 13 years, the highest Debt-to-EBITDA Ratio of Southern Co was 8.17. The lowest was 4.19. And the median was 5.64.
SO's Debt-to-EBITDA is ranked worse than 65.7% of 449
companies
in the Utilities - Regulated industry
Industry Median: 4.01
vs SO: 5.24
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Southern Co Debt-to-EBITDA Related Terms
Southern Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Southern Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, Southern Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southern Co Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southern Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Southern Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Southern Co (SO) has a Debt-to-EBITDA of 4.84 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Southern Co. This is 14% below median its historical median of 5.64. Over the past decade, Southern Co's Debt-to-EBITDA has ranged from 4.19 to 8.17. According to the industry distribution chart, Southern Co ranks #295 out of 449 companies in the Utilities - Regulated industry, placing it in the top 65.7%.
Is Southern Co's Debt-to-EBITDA too high?
Southern Co's current Debt-to-EBITDA of 4.84 is 14% below median its 10-year median of 5.64. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 8.17. The Utilities - Regulated industry median Debt-to-EBITDA is 4.01. Southern Co's value of 4.84 is 20.7% above this industry median. Based on the distribution chart, Southern Co ranks #295 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Southern Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Co's Debt-to-EBITDA compare to DUK and AEP?
According to the Utilities - Regulated industry distribution chart, Southern Co ranks #295 out of 449 companies for Debt-to-EBITDA. This places Southern Co in the lower half of its industry. The industry median Debt-to-EBITDA is 4.01. Southern Co's value of 4.84 is 20.7% above this benchmark. Historically, Southern Co's own Debt-to-EBITDA has ranged from 4.19 to 8.17 over the past decade. While the company's 10-year median is 5.64 vs. the industry median of 4.01, Southern Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 4.01, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southern Co's current Debt-to-EBITDA of 4.84 is 20.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Southern Co. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Co's current Debt-to-EBITDA is 4.84, which is 14% below median its own 10-year median of 5.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Co stock overvalued right now?
Based on GuruFocus' analysis, Southern Co (SO) is currently considered Fairly Valued. The stock's GF Value™ is $94.24, compared to a current price of $95.30 — trading 1.1% above its estimated fair value. The current Debt-to-EBITDA is 4.84, which is 14% below median its 10-year median of 5.64 and 20.7% above the Utilities - Regulated industry median of 4.01. Southern Co's overall GF Score™ is 79/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Southern Co (SO), the current Debt-to-EBITDA is 4.84 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southern Co (SO) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Co stock appears to be overvalued.
The current stock price of $95.30 is trading 1.1% above its estimated GF Value™ of $94.24.
GuruFocus considers Southern Co to be Fairly Valued.
Key valuation signals for SO:
Debt-to-EBITDA: 4.84 (14% below median its 10-year median of 5.64)
GF Value™: $94.24 vs. price of $95.30 (1.1% above fair value)
Industry Position: 20.7% above the Utilities - Regulated median (#295 of 449)
No single metric tells the full story. See the SO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern is one of the largest utilities in the US. The company serves 9 million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. It owns 46 gigawatts of rate-regulated generating capacity, primarily for serving customers in Georgia, Alabama, and Mississippi. Subsidiary Southern Power owns 13 gigawatts of natural gas generation and renewable energy across the US and sells the electricity primarily under long-term contracts.
79GF Score
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