Is OGE Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for OGE Energy Corp. moved from very expensive to expensive, indicating a shift in perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 18, which is lower than the peer average of 24.26 for Pinnacle West Capital Corp. and significantly lower than The AES Corp.'s 25.28. Additionally, the EV to EBITDA ratio of 10.85 is also less favorable compared to the industry peers, suggesting that OGE Energy Corp. is not as competitively valued.
In terms of returns, OGE Energy Corp. has shown a 14.62% return over the past year, slightly outperforming the S&P 500's 14.08%. However, over the longer term, the company's 5-year return of 47.34% lags behind the S&P 500's 91.29%, indicating that while there may be short-term gains, the long-term value proposition appears less compelling. Overall, the combination of valuation ratios and peer comparisons suggests that OGE Energy Corp. is overvalued in the current market context.