X-Energy (XE) released its second quarter 2026 earnings on August 13, reporting revenue of US$54.6 million and a net loss of US$59.09 million, or US$0.21 per share.
The latest second quarter earnings release comes after a mixed run for X-Energy's stock, with a 30-day share price return of 31.25%, following a 90-day share price decline of 30.61% and a year-to-date share price return down 34.55%.
Compare X-Energy's nuclear story with other potential beneficiaries of the sector shift by scanning our hand picked 92 nuclear energy infrastructure stocks today.
After a sharp 30 day rebound and a share price near US$19.11 that sits far below analyst targets around US$38, X-Energy now trades at a steep apparent discount. Is the market being cautious for good reason?
Preferred Price-to-Sales Multiple of 36.6x: Is It Justified?
X-Energy trades at $19.11 while carrying a P/S ratio of 36.6x, compared with far lower benchmarks across both its industry and identified peers. That points to a rich valuation relative to current revenue.
The P/S multiple compares the company's market value with its revenue. For X-Energy, which is still loss making and does not yet have positive earnings or near term profitability forecasts, revenue is a key anchor for how the market is currently pricing the nuclear reactor and fuel business.
XE's P/S ratio of 36.6x is described as expensive versus the US Electrical industry average of 2.7x and a peer average of 5.7x. This places X-Energy at a much higher revenue multiple than both its sector and closer peers. It suggests investors are paying a premium for each dollar of sales compared with other electrical equipment companies, even though X-Energy remains unprofitable and is forecast to stay loss making over the next 3 years despite strong revenue growth forecasts.
Result: Price-to-Sales of 36.6x (OVERVALUED)
See what the numbers say about this price — find out in our valuation breakdown.
However, investors in X-Energy still need to weigh the ongoing net loss of US$448.87 million and the very high 36.6x P/S multiple against future execution risks.
Find out about the key risks to this X-Energy narrative.
Another View on X-Energy's Valuation
While X-Energy looks expensive on a 36.6x P/S ratio, the SWS DCF model points in the same direction. It estimates the future cash flow value at about US$12.10 a share, compared with the current US$19.11 price. This implies the stock is trading above that cash flow based value. How much weight should you give to each method before making a call?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out X-Energy for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With X-Energy pulling such mixed reactions, it makes sense to check the underlying data yourself and move quickly while the story is still developing. To compare the balance of concerns and potential upsides in one place, review the 2 key rewards and 2 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.
Companies discussed in this article include XE .
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