If you own shares of Travere Therapeutics (TVTX) or are considering a position, this week’s twin updates could be your cue to take a closer look. Travere announced that the FDA approved changes to FILSPARI’s monitoring requirements for its IgA nephropathy therapy, easing a major patient burden. At the same time, the company shared promising long-term clinical data for its experimental enzyme therapy, pegtibatinase, in classical homocystinuria, with meaningful reductions in key disease markers. Both developments suggest that regulatory risk could be falling while the product pipeline continues to advance.

These fresh clinical and regulatory milestones follow a year of growing momentum for Travere Therapeutics. Over the past month, the stock has surged nearly 28% and is up a remarkable 69% year-to-date, reversing a multi-year slump. Recent FDA attention, combined with progress from the HARMONY Phase 3 study for pegtibatinase, has reinforced optimism among investors eyeing the company’s next wave of growth. Still, Travere’s long-term return remains moderate, reflecting the lingering risks and execution hurdles typical for specialty biotechs.

So, after this big move, is TVTX still trading at a discount to future potential, or has the recent run-up already factored in the coming years of growth?

Most Popular Narrative: 39.4% Undervalued

According to the most widely followed narrative, Travere Therapeutics is seen as significantly undervalued, with a fair value estimate that points to nearly 40% upside over current prices.

“Expansion of FILSPARI’s label to include treatment for FSGS, a rare kidney disease with no approved therapies, positions Travere for first-mover advantage in a large, underserved market. If approved, this will create a new, high-margin revenue stream and significantly expand the company’s addressable market. (Revenue growth, gross margins)”

Want to know what’s fueling the boldest valuation on Wall Street? The secret sauce behind this narrative includes soaring future profits and a growth trajectory that could reshape Travere’s place in biotech. Are the financial forecasts hiding pleasantly shocking surprises? Dive into the full narrative to discover the assumptions that could power the next leg higher.

Result: Fair Value of $35.71 (UNDERVALUED)

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

However, major reliance on FILSPARI and rising competition in rare kidney disease therapies could challenge Travere’s ability to sustain its current growth expectations.

Find out about the key risks to this Travere Therapeutics narrative.

Another View: DCF Model Backs Up the Story

Taking a different approach, our DCF model also suggests Travere Therapeutics may be priced below its true value. This second perspective supports the optimism, but does it tell the whole story?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Travere Therapeutics 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 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Travere Therapeutics Narrative

If these valuations don’t quite fit your outlook, why not take a fresh look at the data, question the assumptions, and shape your own story: Do it your way.

A great starting point for your Travere Therapeutics research is our analysis highlighting 2 key rewards and 1 important warning sign 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.