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NuScale Power (SMR) Faces A Valuation Test Following New SMR Project News

Simply Wall St · 3d ago

NuScale Power (SMR) has drawn fresh attention after reports that it may soon begin construction on what could become the world's largest small modular reactor facility, contingent on a binding customer agreement.

The news has landed during a rough stretch for NuScale Power, with the share price falling 24.6% over the past week and 48.31% year to date, while the 1-year total shareholder return is down 77.38%. However, it remains positive over three years at 48.68%.

Scan how NuScale Power compares with other nuclear-focused players by reviewing 91 nuclear energy infrastructure stocks, a hand-picked selection shaping the next phase of power infrastructure.

NuScale Power now trades well below the average analyst target after this sharp slide, yet the business still reports heavy losses and relies on uncontracted projects. Is that discount signaling opportunity, or just reflecting unresolved risk?

Most Popular Narrative: 92% Undervalued

NuScale Power last closed at $8.43, while the leading narrative anchors fair value at $100. That gap frames the debate around whether the market is mispricing early-stage nuclear infrastructure risk.

Small modular reactors solve the specific problems that made conventional nuclear uneconomical. Factory manufacturing reduces construction risk. A smaller footprint enables co-location with demand. Modular deployment matches capital expenditure to actual need. NuScale holds the only SMR design currently certified by the Nuclear Regulatory Commission. That certification took years and hundreds of millions of dollars. It is a moat, not a footnote.

See why 38 investors see NuScale Power as 92% undervalued.

Result: Fair Value of $100 (UNDERVALUED)

Still, NuScale Power faces real pressure if new customer contracts stall, or if project costs and licensing hurdles continue to extend timelines and increase cash needs.

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

Next Steps

If you are skeptical after all this or starting to see a different angle on NuScale Power, move quickly, pull up the full breakdown, and weigh the 1 key reward and 3 important warning signs.

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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.