• If you are wondering whether NuScale Power's current share price gives you a fair entry point or not, this article walks through what the numbers are saying about its value.
• The stock closed at US$19.72, with returns of 5.0% over 7 days, 7.5% over 30 days, 20.9% year to date and 4.9% over 1 year. The 3 year and 5 year returns sit at 81.1% and 88.5%.
• Recent coverage around NuScale Power has focused on its role in small modular reactors and how that fits into long term energy planning, along with ongoing attention from investors who track nuclear related names. Together, these headlines help frame why the share price has been active over different timeframes.
• NuScale Power currently has a valuation score of 3 out of 6. This means it screens as undervalued on half of the checks we run. Next, we look at how traditional valuation methods line up with this score before finishing with a broader way to think about what the stock might be worth.

Approach 1: NuScale Power Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes forecasts of a company’s future cash flows and then discounts them back to today to estimate what the entire business might be worth in present dollar terms.

For NuScale Power, the latest twelve month free cash flow is a loss of about $284.0 million. Analysts provide explicit free cash flow estimates out to 2030, and Simply Wall St extrapolates beyond that using a 2 Stage Free Cash Flow to Equity model. Within this path, free cash flow projections move from a loss of $424.9 million in 2026 to a positive $300.7 million by 2030, with further increases in the extrapolated years that follow.

When these projected cash flows are discounted back to today, the model arrives at an estimated intrinsic value of about $51.59 per share. Compared with the recent share price of $19.72, this implies the stock trades at a 61.8% discount to that DCF estimate, which screens as materially undervalued on this approach.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests NuScale Power is undervalued by 61.8%. Track this in your watchlist or portfolio, or discover 883 more undervalued stocks based on cash flows.

Approach 2: NuScale Power Price vs Book

Price to Book, or P/B, is often used for companies where earnings are not yet a reliable guide, because it compares the share price to the accounting value of net assets. For profitable and stable businesses, investors usually accept a higher P/B when they expect stronger growth or see lower risk, and a lower P/B when they see more uncertainty.

NuScale Power currently trades on a P/B of 6.73x. This is above the Electrical industry average P/B of 2.61x and also above the peer group average of 19.61x. These figures provide some simple context but do not capture company-specific characteristics. To refine this, Simply Wall St uses a proprietary “Fair Ratio” for the preferred multiple. This is the P/B level it would expect given factors such as NuScale Power’s growth profile, industry, profit margins, market cap and key risks.

This Fair Ratio is designed to be more tailored than a straight comparison with peers or the broad industry, because it incorporates both business quality and risk inputs specific to NuScale Power. In this case, the Fair Ratio estimate is not available, so this framework cannot be used to judge whether the current 6.73x P/B suggests the shares are overvalued, undervalued, or about right.

Result: ABOUT RIGHT

P/B ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your NuScale Power Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simple stories you build around NuScale Power that link your view of its future revenue, earnings and margins to a forecast and then to a fair value you can compare with today’s price on Simply Wall St’s Community page. This is where millions of investors share their views and where Narratives update automatically as new news or earnings arrive. One investor might lean toward a higher fair value, closer to the US$29.00 bullish target with strong government and ENTRA1 support in mind. Another might anchor nearer the US$17.00 bearish target because they focus more on delayed firm orders, funding needs and share issuance. Both can clearly see how their story translates into numbers and whether that suggests the stock looks expensive or cheap to them right now.

Do you think there's more to the story for NuScale Power? Head over to our Community to see what others are saying!

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.