Assessing Zevra Therapeutics (ZVRA) Valuation Following Strong Revenue Growth and Insider Buying

Zevra Therapeutics (ZVRA) has caught investors’ attention thanks to impressive revenue growth over the last three years and a recent uptick in insider buying. As a result, these trends have sparked fresh curiosity about the company’s stock.

See our latest analysis for Zevra Therapeutics.

Zevra Therapeutics’ share price has rebounded sharply in recent weeks, with a 1-month share price return of nearly 32 percent and a year-to-date gain of 23.5 percent. This likely reflects renewed optimism following notable insider buying and continued robust sales growth. Even so, the longer-term picture remains compelling, as shareholders who stuck with Zevra over the last three years have enjoyed an 81 percent total return. This is clear evidence that momentum is once again building behind the stock after some recent volatility.

If Zevra’s renewed momentum has you thinking about where to look next, take this chance to explore fast growing stocks with high insider ownership.

The key question for investors now is whether Zevra Therapeutics’ recent gains signal a stock that remains undervalued, or if current prices already reflect all its future growth potential. Investors are also considering whether there is still a buying opportunity ahead.

Most Popular Narrative: 53.4% Undervalued

Compared to Zevra Therapeutics’ last close price of $10.82, the most widely followed narrative assigns a fair value over twice as high. This points to substantial upside potential if the company’s ambitious growth drivers materialize. This perspective draws on Zevra’s rare disease focus, expanding revenue base, and strong financial footing, setting the foundation for bolder projections about market share and profitability.

Zevra is well positioned to benefit from the increasing global prevalence and diagnosis of rare and neurodegenerative diseases, which is expanding Zevra's addressable market for its rare disease therapies like MIPLYFFA and pipeline assets. This should support future revenue growth. The launch strategy for MIPLYFFA is gaining traction, as evidenced by rapid U.S. patient uptake (over 1/3 of diagnosed population after only two quarters), high retention rates, and expansion into new patient segments. This indicates the potential for continued sequential revenue increases and greater earnings visibility as market penetration grows.

Read the complete narrative.

Curious about what numbers are fueling this eye-catching fair value? The narrative hinges on bold profit leaps, revenue expansion that only leaders achieve, and an industry-beating margin target. What’s the secret behind such confidence? The full narrative reveals the financial projections driving these bullish expectations. Don’t miss out on the details that could redefine Zevra’s future.

Result: Fair Value of $23.22 (UNDERVALUED)

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

However, slow product adoption and heavy reliance on a single therapy could undermine Zevra’s ambitious growth story if these challenges persist.

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

Another View: Sizing Up Zevra’s Valuation

While the main fair value estimate is more than double today’s price, our SWS DCF model suggests Zevra is trading far below where fundamentals might take it. With the DCF pointing to an even bigger gap, does this reinforce optimism or raise questions about what the market sees?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Zevra Therapeutics Narrative

If you have a different perspective or want to dig deeper into the numbers on your own, crafting your own Zevra Therapuetics narrative takes just a few minutes. You can shape the story your way by using Do it your way.

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

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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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