If you have been keeping an eye on Travere Therapeutics (TVTX), the latest news could be a defining moment in your decision process. The company just shared that the FDA will not require an advisory committee meeting for the supplemental application of its lead therapy, FILSPARI, in treating focal segmental glomerulosclerosis. Along with newly published two-year study data showing strong results for efficacy and safety, this announcement streamlines the regulatory path and adds fuel to the optimism surrounding FILSPARI's future in rare kidney diseases.

These twin developments appear to be raising confidence among investors. Travere Therapeutics' shares have climbed 3% today and are up 6% over the past week. Zooming out, the stock has soared 39% in the past month and surged 71% over the past three months. This momentum far outpaces its modest three-year return. While 63% growth over the year signals renewed conviction, the recent spike unmistakably coincides with the FDA update and promising study results, suggesting investors are reacting to meaningful progress rather than riding a longer trend.

After such a jump, is the market finally recognizing Travere’s underlying value, or are investors already pricing in everything that lies ahead for FILSPARI’s expanding opportunity?

Most Popular Narrative: 30% Undervalued

According to the most widely followed analyst narrative, Travere Therapeutics is considered significantly undervalued, with a suggested fair value around 30% above its current price.

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 would create a new, high-margin revenue stream and significantly expand the company's addressable market. There is strong momentum in FILSPARI's uptake for IgA nephropathy, with a broadening prescriber base, increasing initiation earlier in patient treatment, positive real-world clinical feedback, and pending updates to guidelines and REMS requirements. All these factors are expected to support sustained and deeper market penetration, boosting recurring revenue and improving operating leverage.

Curious why top analysts are touting Travere as one of the market's most overlooked growth plays? The fair value narrative hinges on a remarkable set of forecasts that are driven by aggressive growth assumptions and a future profit multiple that will raise eyebrows. Want to know what powers these bold predictions and sharply higher price targets? Discover the critical numbers and underlying trends that could rewrite the story for this rare disease innovator.

Result: Fair Value of $35.71 (UNDERVALUED)

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

However, increasing competition and heavy reliance on FILSPARI mean that any regulatory setback or loss of clinical edge could quickly change Travere’s outlook.

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

Another View: SWS DCF Model Offers a Stark Contrast

Looking at Travere through the lens of our DCF model offers a strikingly different perspective. This method suggests the market is drastically undervaluing the company, which raises questions about whether the recent rally is just the beginning.

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 you see things differently or would rather dive into the details on your own terms, you can shape your own narrative in just a few minutes. 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.