NuScale Power (SMR) is back in focus after a flurry of pro nuclear moves from Washington, including Congressional hearings and executive orders aimed at speeding advanced reactor deployment, along with NRC approval of its 77 megawatt small modular reactor design.

Those policy moves and the NRC green light have coincided with a sharp mood shift in the stock, with a 15.14% 1 day share price return and a 31.24% 7 day share price return contrasting with a 50.84% 90 day share price decline. At the same time, the 3 year total shareholder return of 77.17% and 5 year total shareholder return of 79.54% point to long term investors having already experienced a very large swing in value as sentiment around growth prospects and funding risks has shifted over time.

If you are watching nuclear’s resurgence and wondering what else is moving, this could be a good moment to scan aerospace and defense stocks for other energy and security linked names.

With NuScale trading at $18.78, sitting on a very large gap to an average analyst target of $35.50 and carrying both strong policy support and clear funding risks, is this genuine mispricing or is the market already pricing in future growth?

Most Popular Narrative Narrative: 48.7% Undervalued

At a last close of $18.78 versus a narrative fair value of roughly $36.58, the most followed view frames NuScale as materially mispriced, hinging on aggressive future growth and margin assumptions.

With an NRC-approved SMR technology and the commitment of over $2 billion towards its development and licensing, NuScale is uniquely positioned for immediate commercial deployment compared to competitors focused solely on demonstration plans. This potentially accelerates revenue growth once commercial operations commence.

Curious what it would take for that valuation gap to close? The narrative leans on rapid revenue expansion, a sharp margin shift, and a rich future earnings multiple. Want to see how those moving parts fit together?

Result: Fair Value of $36.58 (UNDERVALUED)

However, this hinges on NuScale lining up long term customer contracts and securing funding on acceptable terms, with any setbacks in these areas quickly challenging the undervalued case.

Build Your Own NuScale Power Narrative

If this view does not quite fit how you see NuScale, you can stress test the numbers yourself and build a fresh narrative in minutes: Do it your way.

A great starting point for your NuScale Power research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.