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    Is NexGen Energy (TSX:NXE) Overvalued After Its Recent Share Price Strength?

    Simply Wall St·12/25/2025 20:19:58
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    NexGen Energy (TSX:NXE) has been quietly grinding higher this month, and with uranium sentiment improving again, investors are starting to revisit whether this advanced developer’s upside justifies the volatility that comes with it.

    See our latest analysis for NexGen Energy.

    That recent bounce builds on a solid backdrop, with the share price now at $12.93 and a strong year to date share price return feeding into an impressive multi year total shareholder return, which suggests momentum is still on NexGen’s side.

    If NexGen’s move has you thinking about other opportunities in the space, it could be a good time to explore aerospace and defense stocks as another potential hunting ground for resilient, long term themes.

    With shares already up strongly over multiple time frames yet still trading below consensus price targets, the real debate now is whether NexGen remains undervalued or if the market has largely priced in its future growth.

    Price-to-Book of 9.2x: Is it justified?

    On a price-to-book basis, NexGen’s CA$12.93 share price embeds a rich valuation premium compared to both its direct peers and the broader Canadian Oil and Gas industry.

    The price-to-book ratio compares a company’s market value to the book value of its net assets. It is often used for asset heavy, pre revenue, or early stage resource names like NexGen.

    With NexGen trading at 9.2 times its book value, versus 6.9 times for peers, investors are paying a higher price for each dollar of net assets. This may reflect expectations for its Rook I project that have yet to show up in earnings.

    The premium becomes even more pronounced when set against the wider Canadian Oil and Gas industry, where the average price-to-book multiple sits at just 1.6 times. This highlights how aggressively the market is capitalising NexGen’s future potential relative to more mature producers.

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

    Result: Price-to-book of 9.2x (OVERVALUED).

    However, the story could change if uranium prices weaken materially, or if permitting and construction timelines for Rook I slip more than the market expects.

    Find out about the key risks to this NexGen Energy narrative.

    Build Your Own NexGen Energy Narrative

    If you would rather dig into the numbers yourself and shape your own view on NexGen’s outlook, you can build a personalised narrative in just a few minutes: Do it your way.

    A great starting point for your NexGen Energy research is our analysis highlighting 1 key reward and 4 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.