Recent attention on NuScale Power (SMR) has centered on its Nuclear Regulatory Commission approved small modular reactor design, but delays, cancellations and limited near term revenue visibility are shaping how investors are reacting.

That backdrop of delays, cancellations and dilution worries is showing up in the price chart. NuScale’s 7 day share price return of 21.56% and 30 day return of 24.17% add to a 51.09% 90 day decline, while the 1 year total shareholder return of 36.17% contrasts with a still positive 3 year total shareholder return of 45.21% and 5 year total shareholder return of 30.18%. This suggests momentum has recently faded even as the longer term story remains mixed.

If this volatility has you looking beyond a single name, it could be a good moment to scan 87 nuclear energy infrastructure stocks as a starting point for other nuclear focused opportunities.

With NuScale trading at US$14.84, a reported 72% intrinsic discount and analyst targets that imply very large upside, yet no commercial deployments and dilution fears still hanging over the story, is this a rare entry point, or is the market already factoring in future growth?

Most Popular Narrative: 56.6% Undervalued

NuScale Power's most followed narrative pegs fair value at about $34.19 a share versus the last close at $14.84, setting up a wide valuation gap that hinges on future project execution and cash flows.

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.

Want to see what sits behind that confidence in deployment and cash flows? The narrative leans heavily on rapid revenue expansion, margin improvement and a rich future earnings multiple. Curious how those moving parts combine to justify a fair value more than twice the current price?

According to this widely followed view, NuScale screens as undervalued because projected revenue growth, improving profitability assumptions and a high implied future P/E are all pulling in the same direction. The discount rate used is 9.19%, and the fair value estimate of $34.19 reflects those cash flow and margin expectations brought back to today.

Result: Fair Value of $34.19 (UNDERVALUED)

However, that upside case still leans on timely firm orders and ENTRA1 project execution, where delays, funding gaps or supply chain issues could quickly challenge the bullish narrative.

Build Your Own NuScale Power Narrative

If you are not fully convinced by this view or simply prefer to lean on your own work, you can pull together a data driven thesis in just a few 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.

Looking for more investment 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.