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OGE Energy Corp (OGE) Stock: How Does it Score on Fundamental Metrics?

Thursday, March 21, 2024 01:24 PM | InvestorsObserver Analysts

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OGE Energy Corp (OGE) Stock: How Does it Score on Fundamental Metrics?

InvestorsObserver gives OGE Energy Corp (OGE) a weak valuation score of 14 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. OGE currently holds a better value than 14% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 14
OGE gets a 14 Valuation Rank today. Find out what this means to you and get the rest of the rankings on OGE!

Metrics Analysis

OGE's trailing-12-month Price to Earnings (PE) ratio of 15.6 puts it around the historical average of roughly 15. OGE is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. OGE's trailing-12-month earnings per share (EPS) of 2.02 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
OGE's 12-month-forward PE to Growth (PEG) ratio of 3.95 is considered a poor value as the market is overvaluing OGE in relation to the company's projected earnings growth due. OGE's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

OGE' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. OGE's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on OGE Energy Corp (OGE) stock.

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