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Oklo (OKLO): Assessing Valuation After Siemens Energy Deal Accelerates Powerhouse Project Delivery

Simply Wall St · 3d ago

Oklo’s new binding deal with Siemens Energy for the Aurora powerhouse’s power conversion system signals a major step forward. By accelerating key engineering and procurement, Oklo is turning advanced nuclear plans into action for investors to watch.

See our latest analysis for Oklo.

Despite a sharp pullback in the past month, including a 13% drop last week, Oklo’s share price remains up nearly 300% year-to-date. This reflects ongoing enthusiasm for advanced nuclear and small modular reactor companies. Total shareholder returns have been even more impressive, with three-year gains topping 770%. This suggests investors still see long-term potential even as momentum cools in the short term.

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With shares still trading well below analyst targets, but as the rally in advanced nuclear stocks loses steam, the real question is whether Oklo is undervalued at current levels or if the market is already pricing in years of future growth.

Price-to-Book of 11.3x: Is it justified?

Oklo’s shares are trading at a price-to-book ratio of 11.3x, which is significantly higher than both industry and peer averages based on the last close price of $87.36. This premium multiple stands out given Oklo’s early-stage business profile and market optimism.

The price-to-book ratio compares the company’s market value to its book value, providing a sense of how much investors are willing to pay above the net asset value. For utilities like Oklo, this multiple can signal confidence in future profitability or unique technologies, but it may also highlight excessive speculation if fundamentals lag.

Despite market excitement around Oklo’s advanced nuclear ambitions, this valuation appears stretched. The US electric utilities industry typically trades at 1.9x book, making Oklo’s current ratio more than five times higher than established operators. Peer averages also point to a much lower baseline, setting up Oklo’s valuation as an outlier rather than a benchmark.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 11.3x (OVERVALUED)

However, sustained losses and zero current revenue highlight real risks that could limit Oklo's upside and challenge investor expectations for rapid growth.

Find out about the key risks to this Oklo narrative.

Build Your Own Oklo Narrative

If you’re ready to challenge the story or want to draw your own conclusions from the numbers, consider building your own perspective in just a few minutes. Do it your way

A great starting point for your Oklo research is our analysis highlighting 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.