Is OGE Energy Corp. overvalued or undervalued?

As of 22 August 2025, the valuation grade for OGE Energy Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 18, which is lower than its peer Pinnacle West Capital Corp. at 24.26, but higher than The AES Corp. at 25.28. Additionally, the EV to EBITDA ratio stands at 10.85, again lower than Pinnacle West's 11.52, while the PEG ratio of 0.83 suggests that the stock may not be priced attractively relative to its growth prospects.
In terms of returns, OGE Energy Corp. has underperformed compared to the S&P 500 across multiple periods, with a 1-year return of 8.03% compared to the S&P 500's 17.14%, and a 5-year return of 52.06% versus 96.61% for the index. This performance reinforces the notion that OGE Energy Corp. is currently overvalued, as it has not kept pace with broader market returns.