Oklo (OKLO): Valuation in Focus After Major Siemens Energy Partnership Announcement

Oklo (OKLO) just announced a binding agreement with Siemens Energy to design and deliver the power conversion system for its first Aurora powerhouse. This milestone helps reduce execution risk and supports the startup’s long-term growth narrative.

See our latest analysis for Oklo.

Oklo’s share price has been on a wild ride, surging more than 20% over the past three months and up a staggering 309.8% year-to-date, even after a sharp 34% dip this month. While the recent drop reflects market jitters around AI and speculative growth themes, big-picture momentum remains firmly with Oklo as it continues to hit major regulatory and commercial milestones.

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After such a dramatic surge and recent volatility, the big question remains: is Oklo’s impressive run just getting started, or has the market already factored in all of its future growth potential, leaving limited room for upside?

Price-to-Book Ratio of 11.6x: Is it justified?

Compared to its US Electric Utilities peers, Oklo’s price-to-book ratio of 11.6x stands out as remarkably high, especially given its current fundamentals.

The price-to-book ratio compares a company’s market value to its book value, offering a rough measure of what investors are willing to pay for each dollar of net assets on the balance sheet. For utilities, this metric is standard because it highlights how expectations for future earnings and asset growth influence current valuations.

This high ratio suggests investors expect significant value creation from Oklo’s planned projects or future revenues, far exceeding either the company's present asset base or the industry norm. However, since Oklo has virtually no revenues and remains unprofitable, the premium may be pricing in a best-case growth scenario rather than current performance. In stark contrast, the US Electric Utilities industry averages just 1.9x, making Oklo appear extremely expensive relative to its sector.

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

Result: Price-to-Book Ratio of 11.6x (OVERVALUED)

However, weak revenue growth and persistent net losses could quickly challenge the bullish case if execution falters or if market sentiment shifts further.

Find out about the key risks to this Oklo narrative.

Build Your Own Oklo Narrative

If you want to challenge the consensus or take a hands-on approach, you can explore the underlying data and shape your own view 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.

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