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NuScale Power (SMR) Faces Delay Pressure, Is It Still 91% Undervalued?

Simply Wall St · 1d ago

NuScale Power (SMR) is back in focus after renewed concerns about continued delays to its first operational power modules, weak near term results, and the lack of binding customer contracts despite regulatory approvals.

See our latest analysis for NuScale Power.

NuScale Power’s recent setbacks around commercialization timelines and class action lawsuits appear to be weighing on sentiment. The stock’s year to date share price return is down 44.57% and its 1 year total shareholder return is down 75.88%, despite a positive 3 year total shareholder return of 18.17% that reflects earlier optimism now fading.

If you are looking beyond NuScale Power to other ways to position around the nuclear theme, this could be a useful moment to scan 89 nuclear energy infrastructure stocks

The stock has fallen hard to US$9.04 even as analyst targets cluster near US$15. So where does fair value for NuScale Power really sit between current pessimism and more optimistic estimates?

Most Popular Narrative: 91% Undervalued

Against NuScale Power’s last close at $9.04, the most followed narrative on the stock points to a fair value of $100. That gap reflects a view that the market is heavily discounting long term potential relative to this narrative’s assumptions.

The structural case hasn't moved.

AI data centers are now the fastest-growing source of electricity demand in the United States. Hyperscalers have publicly committed to carbon-neutral power. The only energy source that is simultaneously clean, always-on, and scalable to the density these facilities require is nuclear. Solar and wind cannot provide the uninterrupted baseload that computation demands. That is not a policy opinion, it is an engineering constraint.

Read the complete narrative.

According to Delphic, this fair value view leans heavily on NuScale Power’s certified small modular reactor design, expectations for fast revenue expansion, and the profit profile that would need to follow. Want to see how those pieces fit together into a $100 valuation and what kind of future earnings multiple is being used to get there? The full narrative lays out the exact financial path behind that number.

Result: Fair Value of $100 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this NuScale Power narrative could be knocked off course if commercialization timelines extend further or if binding customer contracts remain limited despite existing regulatory approvals.

Find out about the key risks to this NuScale Power narrative.

Next Steps

With sentiment on NuScale Power so split between risks and rewards, now is the moment to move fast, review the numbers yourself, and see how your view lines up with the 1 key reward and 3 important warning signs

Looking for more investment ideas beyond NuScale Power?

If NuScale Power has sharpened your interest in energy and infrastructure themes, consider using the wider market to pressure test and broaden your watchlist.

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.