* Note: Prices are in Million (M) USD.
Description:
Travere Therapeutics, Inc. is a biopharmaceutical company focused on advancing innovative treatments for patients with rare diseases, headquartered in San Diego, California. With a strong pipeline targeting metabolic and genetic disorders, Travere seeks to address critical unmet medical needs through strategic partnerships and a commitment to rapid development and commercialization of its therapies. The company is dedicated to transforming patient lives, exemplifying a robust approach to bringing effective solutions to the market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $111 M
Debt : $317 M
EBITDA : $-23 M
Net Debt (Debt - Cash): $206 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Biotechnology
Biotechnology detected → treating as non-Technology. 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 26.85
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 15 overlapping fiscal years (max 20).Average Free Cash Flow: $-84 M
Average Revenue: $118 M
Revenue Converted To Free Cash Flow (%): -71.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $233 M
Revenue 5 Years Ago (2019-12-31): $175 M
Total Growth over 5 Years: 33.0%
5-Year Revenue CAGR (Historical): 5.9%
Forward 5-Year CAGR (Tapered): 5.3%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $79 M
Share Count 5 Years Ago (2020-12-31): $48 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.82
Trailing 12-Month Earnings Per Share (EPS): $0.75
Average Earnings Per Share (EPS): $1.29
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 10 valid ROE years (max 20).Average ROE: -148.5%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $34.5
52-Week Low: $12.91
Threshold Price (15% Above 52-Week Low): $14.85
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,087 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 7 points to above Travere Therapeutics Inc (TVTX) stock.
Fair Value PE
9, Industry Based PE
15, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
18.47. Based on these 4 values, average assigned is
14.37. Value-Trades has assined P/E value
14.37. An average (Current Year EPS + Next Year EPS) earning per share is
$1.285.
Fair value using multiple P/Es (blended): $18.46 (PE 14.37 × EPS $1.29)
So the Final Fair Value is: $18.46
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.29
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.37 | $18.47 |
