A Look at Mirum Pharmaceuticals (MIRM) Valuation After Strong 2024 Share Price Momentum

Mirum Pharmaceuticals (MIRM) shares have been fairly active lately, with the stock up nearly 68% since the start of the year. Investors seem to be watching the company's recent momentum and considering its future growth potential.

See our latest analysis for Mirum Pharmaceuticals.

Mirum Pharmaceuticals has not just climbed since January, it has sustained real momentum: a 67.6% year-to-date share price return and an impressive 79.8% one-year total shareholder return signal that investors are taking its growth story seriously. That said, recent pullbacks have done little to dampen the upbeat longer-term trend.

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Yet with shares still trading at a notable discount to analyst targets despite their dramatic run, the key question now is whether Mirum's valuation leaves room for further upside or if future growth is already reflected in the price.

Most Popular Narrative: 15.7% Undervalued

Mirum Pharmaceuticals’ current share price sits noticeably below the most-followed narrative’s fair value estimate of $83.55, presenting a perceived gap between market price and projected worth. This context sets the stage for closer inspection of the thesis driving this optimistic valuation.

The expanding addressable patient population for Mirum's therapies, especially with the increased recognition and diagnosis of later-onset PFIC through broader use of genetic testing and heightened disease awareness, is driving higher-than-expected patient volumes. This growing patient base is expected to directly contribute to sustained top-line revenue growth.

Read the complete narrative.

Curious about the momentum behind this ambitious valuation? The full narrative reveals the engine of multi-year growth, along with bullish financial projections and a profit surge typically reserved for sectors outside biotech. Want a peek at these bold earnings assumptions? Dive in and see what’s powering Mirum’s target price.

Result: Fair Value of $83.55 (UNDERVALUED)

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

However, setbacks in Mirum’s pipeline studies or increased competition for its core therapies could quickly challenge the growth narrative reflected in current targets.

Find out about the key risks to this Mirum Pharmaceuticals narrative.

Build Your Own Mirum Pharmaceuticals Narrative

If you want to explore the numbers from a fresh perspective or uncover a story the market might have missed, you can craft your own narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Mirum Pharmaceuticals.

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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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