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In April 2024, Investing.com’s Fair Value model identified Esperion Therapeutics (NASDAQ:ESPR) as significantly undervalued, with the stock trading at just $2.14. Fast forward to today, and ESPR has reached $3.79, delivering an impressive 77% return over 20 months and validating the precision of our analysis. This success story illustrates how Fair Value models help investors find better entry points, understand a stock’s intrinsic worth, and make more informed decisions by combining multiple valuation methodologies. For investors looking for similar opportunities, our Most undervalued list highlights stocks our models currently identify as trading below their intrinsic value.
Esperion Therapeutics is a pharmaceutical company focused on developing treatments for elevated LDL-cholesterol. When our Fair Value model flagged ESPR in April 2024, the company was showing promising signs despite challenges. With annual revenue of $229.74 million, EBITDA of -$34.57 million, and EPS of -$0.69, the company was still in growth mode. The stock had experienced significant volatility in the six months prior, including a dramatic 124.8% surge in December 2023 followed by a 28.4% decline in January 2024. Despite this volatility, our models identified substantial upside potential of approximately 60.75%.
The investment thesis has played out even better than anticipated. From the April 2024 entry price of $2.14, ESPR has climbed to $3.79, surpassing our initial Fair Value target and delivering a 77% return. The stock’s journey wasn’t linear – it experienced several pullbacks throughout 2024 and early 2025 before gaining strong momentum in the second half of 2025, particularly during July-August when it rose over 56% and November when it added another 35%.
Recent developments have validated our initial assessment. Esperion has expanded internationally, with Japan approving its cholesterol drug NEXLETOL, resulting in a $90 million payment from partner Otsuka. The company also received approval for Nilemdo in Canada. Fundamentally, Esperion has improved across key metrics – revenue has grown to $303.80 million (a 32% increase), EBITDA has improved to -$29.27 million, and EPS has strengthened to -$0.54. The Q3 2025 results showed impressive 69% revenue growth, though an earnings miss tempered some enthusiasm. Analyst sentiment has remained positive, with Piper Sandler initiating coverage with an Overweight rating and Citizens reiterating a Market Outperform rating.
InvestingPro’s Fair Value analysis works by aggregating multiple valuation methodologies including discounted cash flow models, comparable company analyses, and market range analysis. This comprehensive approach provides a more robust intrinsic value estimate than any single valuation method, helping investors identify opportunities where market prices diverge significantly from fundamental worth. The Esperion case demonstrates the effectiveness of this multi-faceted approach.
The success of our Fair Value model with Esperion isn’t an isolated case. InvestingPro subscribers gain access to Fair Value estimates for thousands of stocks, along with financial health metrics, real-time alerts, and customizable stock screeners. These tools can help you identify the next potential winner before the market catches up. Learn more about InvestingPro and discover how our data-driven insights could enhance your investment strategy.