Is NuScale Power (SMR) Undervalued After CEO PPA Commentary Raised Revenue Visibility?

CEO commentary puts NuScale Power in focus

NuScale Power (SMR) is back in the spotlight after CEO John Hopkins highlighted the potential impact of securing a power purchase agreement with a major utility by the end of 2026.

For investors, that timeline and the prospect of longer term revenue visibility are drawing fresh attention to NuScale Power following a period of operational setbacks and increased interest in its approved small modular reactor design.

See our latest analysis for NuScale Power.

Against that backdrop, NuScale Power’s share price has moved sharply in both directions, with the 1-day share price return of 5.56% and 7-day return of 7.29% standing in contrast to a year-to-date share price decline of 47.64% and a 1-year total shareholder return that is down 83.25%, while the 3-year total shareholder return remains positive.

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The recent bounce in NuScale Power after a steep 1-year decline puts a clear choice in front of you. Is this a moment to lean into the volatility, or to wait for a calmer entry as the valuation picture comes into focus next?

Most Popular Narrative: 91.5% Undervalued

At a last close of $8.54, the most followed narrative on NuScale Power is built around a fair value of $100, which implies a very large gap between the market price and that narrative view.

Its my fudemental belief that retail has a strayed from real long-term value, and towards a perverse sentiment rooted purely in numbers. The market looked at NuScale's 2023 project cancellation and saw a failed company. That's the wrong frame. What actually happened is that a first-of-kind technology encountered the first regulatory hurdle and cost discovery, which is not a verdict on the technology, it's the expected friction of building something that has never been built at commercial scale before.

Read the complete narrative.

Curious what supports a fair value that far above $8.54 for NuScale Power. The narrative leans heavily on aggressive revenue expansion, margin lift and a premium future earnings multiple. The full story ties those inputs to one headline number.

Result: Fair Value of $100 (UNDERVALUED)

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

However, this NuScale Power narrative still hinges on successful SMR deployment and regulatory progress, as well as access to large scale funding for capital intensive projects.

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

Another View on NuScale Power's valuation

The fair value of $100 in the leading NuScale Power narrative sits alongside a much cooler message from current valuation checks. On a P/B of 2.5x, NuScale Power is described as slightly expensive versus the US Electrical industry average of 2.4x, although well below a peer average of 28.7x. That gap highlights both potential upside if sentiment shifts and clear risk if expectations on future growth and funding do not play out. Which side of that tradeoff fits your risk tolerance today?

For a closer look at how this kind of ratio based view stacks up beside other approaches, including more detailed breakdowns of P/B, you can review the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mix of optimism and concern around NuScale Power feels familiar, use that tension as a prompt to review the facts and act quickly on your own view with the help of the 1 key reward and 3 important warning signs.

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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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