Assessing Travere Therapeutics After Regulatory Wins and a 48% Rally in 2025

Thinking about making a move on Travere Therapeutics? You’re not alone. With the stock up a stunning 48.4% year-to-date and a 55.6% rally over the past year, plenty of investors are taking notice. The last month alone brought a jump of 16.2%, and even shorter-term momentum has been strong, with a 2.3% gain in the last week. Naturally, these big price moves have sparked fresh debates about whether the stock’s growth story is just beginning or if it is already priced in.

Fueling that discussion are some key news items shaping investors’ views on Travere’s future. The company’s recent regulatory wins and positive clinical updates have certainly shifted sentiment, with many now seeing reduced risk in their pipeline. It is clear that the market is reacting not only to Travere’s latest milestones, but also to a broader sense that the stock may be undervalued relative to its prospects.

Speaking of value, Travere now scores a 4 out of 6 in current valuation checks. That means it is undervalued in two-thirds of the major ways analysts measure a company, which is reason for a closer look. As we dive into these valuation methods one by one, keep in mind that there may be an even better way to put it all together. More on that at the end.

Travere Therapeutics delivered 55.6% returns over the last year. See how this stacks up to the rest of the Biotechs industry.

Approach 1: Travere Therapeutics Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates the intrinsic value of a company by projecting its future cash flows and then discounting them back to today’s dollars. This approach helps investors judge what a stock might truly be worth, independent of the current market sentiment.

For Travere Therapeutics, analysts are forecasting a dramatic swing in free cash flow. Currently, the company reports Free Cash Flow at negative $209.9 million. However, projections suggest growth to $384 million by 2029, with ten-year estimates extending even further and indicating continued expansion in the following years. Analyst estimates are most robust for the next five years; beyond that, forecasts are extrapolated based on longer-term trends.

When DCF calculations apply these projections, the resulting estimated intrinsic value for Travere shares is $134.86. That is a full 79.1% above where the stock currently trades, marking the stock as significantly undervalued through this lens.

For investors relying on fundamentals, this data-driven DCF snapshot suggests that Travere Therapeutics may be offering considerable value right now.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Travere Therapeutics.

Our Discounted Cash Flow (DCF) analysis suggests Travere Therapeutics is undervalued by 79.1%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Travere Therapeutics Price vs Sales

The Price-to-Sales (P/S) ratio is often preferred for evaluating companies like Travere Therapeutics, especially in biotech, where earnings may still be negative or volatile due to heavy R&D investments and future-oriented business models. The P/S ratio looks at how much investors are willing to pay for each dollar of revenue, making it a helpful benchmark when profits have yet to stabilize.

Growth potential and risk play key roles in determining what a “normal” or “fair” P/S multiple should be. Companies expected to deliver strong revenue expansion or to reduce risk in their business typically trade at higher multiples, while more mature or riskier businesses often warrant lower valuations.

Travere currently trades at a P/S ratio of 7.52x, which is lower than both the peer average of 12.19x and the broader biotech industry average of 10.76x. However, benchmarks like these cannot account for everything specific to Travere’s situation. That is where Simply Wall St’s proprietary “Fair Ratio” comes in. For Travere, that figure stands at 4.81x. The Fair Ratio aims to provide a more tailored benchmark, accounting not just for peer and industry comparisons but also the company’s own growth outlook, risks, profitability, and size in the market.

Because the actual P/S ratio of 7.52x is noticeably above the Fair Ratio of 4.81x, this suggests the market may have priced some optimism into the stock beyond what is supported by fundamentals.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Travere Therapeutics Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce Narratives, a smarter and more holistic approach to investment decisions. A Narrative is simply the story you tell about a company’s next chapter: your perspective on what its future could look like, including your assumptions about key numbers like fair value, future revenue, earnings, and margins. Unlike just plugging numbers into a calculator, Narratives connect your outlook on Travere Therapeutics with concrete financial forecasts and fair value estimates. This lets you see why your thesis supports a “buy,” “hold,” or “sell” decision.

Available right now on Simply Wall St’s Community page (where millions of investors share insights), Narratives are easy to use and update dynamically whenever news, earnings, or events move the goalposts. They empower you to weigh fair value versus today’s price and decide if the market agrees with your viewpoint. For example, one investor may believe Travere’s FSGS expansion will spark rapid growth and set a high price target, while another may focus on competitive or regulatory risk and see much more modest upside. Either Narrative puts your investment stance into context and is ready to act as the facts evolve.

Do you think there's more to the story for Travere Therapeutics? Create your own Narrative to let the Community know!

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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