Entergy Corp (ETR) is overvalued and Southern Company (SO) is slightly undervalued.
Against our estimates of intrinsic value, SO trades at the wider discount: a margin of safety of +9%, against -33% for ETR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.0% (average of 2 methods) values the shares at $76.04; the price of $101.16 is 33% above that value.
Leak Score 40/100 on 10 of 12 signals
Discounting its cash flows at 6.8% (average of 2 methods) values the shares at $93.38; the price of $85.15 is 9% below that value.
Leak Score 37/100 on 10 of 12 signals
| Metric | ETR | SO |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $101.16 | $85.15 |
| Intrinsic value | $76.04 | $93.38 |
| Margin of safety | -33% | +9% |
| Leak Score | 40/100 (10/12) | 37/100 (10/12) |
| Market cap | $48.3B | $98.0B |
| Revenue growth, 5 years | 5.4% | 7.9% |
| Operating margin | 22.2% | 24.2% |
| Net margin | 13.3% | 15.4% |
| Return on equity | 10.4% | 12.7% |
| Debt to equity | 1.88 | 1.95 |
| P/E | 25.9x | 20.6x |
| Forward P/E | 19.8x | 17.3x |
| P/B | 2.6x | 2.5x |
| Dividend yield | 2.5% | 3.6% |