Recent performance context for NuScale Power (SMR)

NuScale Power (SMR) has drawn fresh attention after a period of weak share performance, with the stock down 7.1% in the past day and 71.1% over the past year.

With the share price down 28.3% over the past week and 38.7% year to date, and a 1-year total shareholder return decline of 71.1% compared with a positive 3-year total shareholder return of 18.5%, recent momentum has clearly been fading compared with earlier gains.

If you are considering other ways to position around nuclear power and grid demand, it may be worth scanning the 88 nuclear energy infrastructure stocks

With NuScale’s share price under pressure but revenue and net income growth figures available, the key question is simple: is the stock now trading below what the business could be worth, or is the market already pricing in future growth?

Most Popular Narrative: 90% Undervalued

Against a last close of $10.00, the most followed narrative on NuScale Power pegs fair value at $100.00, creating a wide gap for investors to assess.

Its my fudemental belief that retail has a strayed from real long-term value, and towards a perverse sentiment rooted purely in numbers. The market looked at NuScale's 2023 project cancellation and saw a failed company. That's the wrong frame. What actually happened is that a first-of-kind technology encountered the first regulatory hurdle and cost discovery, which is not a verdict on the technology, it's the expected friction of building something that has never been built at commercial scale before.

The narrative, according to Delphic, leans heavily on rapid revenue expansion, a rich future earnings multiple and healthier margins to justify that higher fair value. Those assumptions are paired with a specific discount rate to bring projected cash flows back to today. Curious which numbers are carrying the weight of that $100.00 figure and how they stack up against the current $10.00 share price.

Result: Fair Value of $100.00 (UNDERVALUED)

However, this thesis still carries clear risks, including ongoing losses at NuScale and the possibility that nuclear projects or data center demand scale more slowly than hoped.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Next Steps

The mix of enthusiasm and caution around NuScale sets a clear tension, so act while the debate is fresh and weigh the 1 key reward and 3 important warning signs

Looking for more investment ideas?

If NuScale has you rethinking your portfolio mix, do not stop here. Use this moment to scout fresh opportunities while the market focus is elsewhere.

• Target companies that look mispriced by scanning the 46 high quality undervalued stocks and see which stocks currently trade at a discount to their fundamentals.
• Strengthen your income stream by reviewing the 9 dividend fortresses and spotting stocks that combine higher yields with consistent payout histories.
• Dial back risk without stepping out of the market by checking the 63 resilient stocks with low risk scores and focusing on companies with more resilient profiles.

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.