Here's What The Southern Company's (NYSE:SO) P/E Ratio Is Telling Us
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at The Southern Company's (NYSE:SO) P/E ratio and reflect on what it tells us about the company's share price. What is Southern's P/E ratio? Well, based on the last twelve months it is 14.76. In other words, at today's prices, investors are paying $14.76 for every $1 in prior year profit.
Check out our latest analysis for Southern How Do You Calculate Southern's P/E Ratio?
The formula for price to earnings is:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Southern:
P/E of 14.76 = USD64.92 ÷ USD4.40 (Based on the year to September 2019.)Is A High P/E Ratio Good?
A higher P/E ratio means that buyers have to pay a higher price for each U ...