NuScale Power (SMR): Evaluating Valuation After Recent Share Price Volatility

NuScale Power (SMR) shares have been on the move this month, drawing attention from investors curious about the latest developments. With the company’s recent market activity, there is plenty to consider regarding its current valuation and momentum.

See our latest analysis for NuScale Power.

NuScale Power’s stock has seen a dramatic swing lately, with a sharp 1-month share price decline of 49.27 percent following a period of impressive year-to-date gains. Although the 1-year total shareholder return is slightly negative, long-term investors have still more than doubled their money over three years. This shows that momentum can build and fade quickly in this space.

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Given the dramatic swings and mixed recent returns, investors are left with a key question: is NuScale Power trading at a discount to its true value, or is the market already factoring in future growth prospects?

Most Popular Narrative: 45% Undervalued

Compared to the last close price of $22.45, the most popular narrative assigns NuScale Power a fair value of $40.84 per share. That is a substantial gap, and it all hinges on whether the company can meet ambitious growth expectations and deliver on pivotal industry partnerships.

NuScale's involvement in the RoPower 6-module small modular reactor (SMR) power plant in Romania indicates future meaningful revenue and cash flow through its partnership in the Fluor-led Front-End Engineering and Design (FEED) Phase 2. This project enhances NuScale's revenue prospects. 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.

Read the complete narrative.

Curious how this bold narrative stacks up? A stunning set of growth assumptions and sector-defying margins power this target. Wondering which projections fuel such optimism? Dive in to see which unique financial bets are hiding beneath the surface, only in the full narrative.

Result: Fair Value of $40.84 (UNDERVALUED)

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

However, delays in securing power purchase agreements or uncertainties in future funding could disrupt growth expectations and pose challenges to the optimistic narrative.

Find out about the key risks to this NuScale Power narrative.

Build Your Own NuScale Power Narrative

If you have your own take or want to dig deeper into the numbers, try building your personal NuScale Power narrative in just a few minutes. Do it your way

A great starting point for your NuScale Power research is our analysis highlighting 1 key reward 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.

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