Krystal Biotech (KRYS): Evaluating Valuation After Vyjuvek FDA Label Expansion and Market Opportunity Broadening

Krystal Biotech (KRYS) just received an FDA label update for Vyjuvek, which opens up expanded use for more patients, including at-home administration. This move could rapidly change the landscape for treating dystrophic epidermolysis bullosa.

See our latest analysis for Krystal Biotech.

Krystal Biotech’s FDA label expansion for Vyjuvek comes on the heels of notable milestones, including over 575 reimbursement approvals and brisk sales in 2025. The momentum around DEB treatments has been further underscored by new competition. Krystal’s three-year total shareholder return of 177% demonstrates enduring confidence from investors, while the latest developments hint at renewed growth potential.

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With the FDA label expansion fueling optimism and strong recent returns, the key question remains: Is Krystal Biotech trading at a rare discount in light of its growth drivers, or are investors already pricing in future gains?

Most Popular Narrative: 10.6% Undervalued

At a last close price of $183.36 and a widely followed fair value estimate of $205.20, Krystal Biotech is seen as trading at a discount by those tracking the company's future prospects. The analysts behind this narrative base their expectation on rapid growth and broadening global markets, which fuels strong optimism around future earnings potential.

Significant international expansion is imminent, with VYJUVEK launches in Europe and Japan expected to substantially increase addressable market and top-line revenues over the next 12 to 18 months. Broad regulatory labels and established reimbursement pathways in these markets are likely to support pricing power and faster adoption.

Read the complete narrative.

What kind of growth could justify this price? The narrative’s forecast is built on a set of aggressive revenue and profit targets, along with assumed premium margins. What’s the thinking behind these bullish numbers? Unlock the full set of projections and discover the daring assumptions propelling this fair value further ahead of today’s price.

Result: Fair Value of $205.20 (UNDERVALUED)

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

However, persistent revenue volatility or delays in global reimbursement decisions could quickly undermine the bullish case for Krystal Biotech’s current valuation.

Find out about the key risks to this Krystal Biotech narrative.

Another View: Price/Earnings Perspective

While the analyst consensus sees Krystal Biotech as undervalued, comparing its price/earnings ratio of 36.2x to the US Biotechs industry average of 16.7x and peer average of 58.5x presents a more nuanced picture. The fair ratio for Krystal is estimated at 25.5x, which suggests the current price carries some valuation risk if the market reverts to this level. Could the growth story justify staying above the fair ratio, or are expectations running too hot?

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

Build Your Own Krystal Biotech Narrative

If you think there’s more to Krystal Biotech’s story or want to draw your own conclusions from the data, you can create your own in just a few minutes. Do it your way

A great starting point for your Krystal Biotech research is our analysis highlighting 3 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.

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