WSP Global (TSX:WSP): Assessing Valuation After Nuclear Team’s Involvement at World Nuclear Exhibition

WSP Global (TSX:WSP) recently drew attention as its global nuclear team participated in the 2025 World Nuclear Exhibition in Paris. The event highlighted rising global interest in nuclear energy, with a particular focus on Small Modular Reactors.

See our latest analysis for WSP Global.

Despite WSP Global’s proactive steps in the nuclear sector, its share price has slipped in recent months, falling 14.7% over the past 30 days and posting a modest 1-year total shareholder return of -1%. However, its multi-year track record remains strong, with a compelling 49% total shareholder return over three years and 165% over five years. This suggests solid long-term momentum even as short-term sentiment cools.

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With the stock off its recent highs but boasting a strong long-term track record, the question is whether WSP Global is currently undervalued or if the market has already priced in its potential for future growth.

Most Popular Narrative: 24.8% Undervalued

WSP Global's last close of CA$240.72 stands well below the most popular narrative's fair value estimate of CA$320.14. This sharp gap is drawing attention, especially as analyst consensus continues to build around the stock's long-term upside.

Accelerated investment in digital tools, advanced analytics, and AI (including transformational partnerships like Microsoft and Urban Logic) is expected to boost project delivery efficiency and enable scalable margin expansion, already evidenced by productivity gains, record-low DSO, and improved adjusted EBITDA margin.

Read the complete narrative.

Curious what kinds of growth could power such a bold valuation target? There's a central assumption here: fast-improving margins, stickier revenue from strategic moves, and a dramatically higher future profit multiple. But how do these forecasts come together? How aggressive are they? Unpack the financial leap that drives this fair value.

Result: Fair Value of $320.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, integration risks from frequent acquisitions and potential slowdowns in government infrastructure spending could present challenges to WSP Global’s optimistic growth outlook.

Find out about the key risks to this WSP Global narrative.

Another View: Price-to-Earnings Raises Concerns

While the fair value estimate paints WSP Global as undervalued, the company’s price-to-earnings ratio is 35.9x, which is significantly higher than the North American construction industry average of 31.8x, its peer group at 19.9x, and the fair ratio of 28.4x. This premium suggests less upside and higher valuation risk if growth stumbles. Could the market’s optimism be misplaced, or is WSP’s quality worth paying up for?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own WSP Global Narrative

If these perspectives don't reflect your own, or you enjoy independent research, you can easily craft your own view on WSP Global in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding WSP Global.

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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.

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