The U.S. Department of Energy’s new funding for Oklo (OKLO) to study radioactive materials in hot liquid salt puts its nuclear fuel recycling plans in focus and has drawn fresh investor attention.

That DOE award lands at a volatile moment for Oklo, with the share price at US$66.23 after a 1 month share price return of a 35.39% decline and a 1 year total shareholder return of 21.79%. The 3 year total shareholder return is very large at more than 6x, suggesting long term holders have seen strong gains even as recent momentum has faded.

If this nuclear fuel recycling story has caught your eye, it could be a good time to look across the sector and see what else is moving in our 87 nuclear energy infrastructure stocks.

With Oklo still pre commercial, generating no revenue and carrying a recent 35% 1 month share price decline, the key question is simple: is this pullback mispricing its fuel recycling potential, or are markets already pricing in future growth?

Preferred Price-to-Book of 8.6x: Is It Justified?

On a simple yardstick, Oklo’s current valuation looks stretched, with a P/B ratio of 8.6x compared with a peer average of 1.9x and a US Electric Utilities industry average of 1.9x, even though the company is still unprofitable and generates no revenue.

P/B compares the market value of the company to its net assets on the balance sheet, which is often a useful shorthand for asset heavy utilities. In Oklo’s case, investors are paying a much higher multiple of book value than is typical for the sector. The company reports a loss of $76.561m, has a negative Return on Equity of 6.35% and is forecast to have no revenue next year.

That combination suggests the current price is heavily tied to expectations around future nuclear fuel recycling and advanced fission projects rather than existing earnings power. Analysts also have a price target that is more than 20% higher than the current share price, but the available data notes that these forecasts are not within a statistically confident range of agreement, and there is insufficient information to run the SWS DCF model for an intrinsic value cross check.

Compared with both its peer group and the wider US Electric Utilities industry, Oklo’s 8.6x P/B stands out as expensive relative to the 1.9x average that the market assigns to more established, profitable utilities. For investors, that gap highlights how much optimism is already embedded in the price for a company that is currently unprofitable, forecast to remain unprofitable over the next 3 years and carries higher risk funding with all liabilities coming from external borrowing.

Result: Price-to-book of 8.6x (OVERVALUED)

However, the story can change quickly if progress on fuel recycling stalls or if funding conditions tighten for a company that reports a US$76.561m loss and no revenue.

Build Your Own Oklo Narrative

If you see the data differently or want to test your own assumptions, you can pull the numbers, stress test your view, and Do it your way in a few minutes.

A great starting point for your Oklo research is our analysis highlighting 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you stop at Oklo, you risk missing opportunities that better fit your goals, so take a few minutes to compare it with other focused stock ideas.

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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.