Trevi Therapeutics (TRVI): Evaluating Valuation After Appointing Veteran Biopharma CFO David Hastings

Trevi Therapeutics (TRVI) just named veteran finance executive David Hastings as its next Chief Financial Officer, effective January 6, 2026, a move that immediately sharpened investor focus on the stock’s trajectory. See our latest analysis for Trevi Therapeutics. The timing of Hastings’ appointment coincides with Trevi’s 90-day share price return of nearly 50 percent and roughly 180 percent year-to-date share price gain, which together indicate firmly building momentum, supported by a three-year total shareholder return above 500 percent. If this kind of clinical-stage rerating has your attention, it could be worth scanning other promising biotech names with healthcare stocks as potential additions to your watchlist. With shares still trading at a steep discount to Wall Street’s target despite explosive multi year returns and a pivotal pipeline milestone on the horizon, investors may be asking whether Trevi is undervalued today or already priced for its next leg of growth. Price to Book of 8.2x: Is it justified? Trevi’s last close at $12.19 implies a rich valuation on traditional yardsticks, with its price to book ratio screening as elevated versus peers. The price to book multiple compares the market value of the company to its net assets, a common shorthand for early stage, loss making biopharma names that lack meaningful revenue or earnings. At 8.2 times book value, versus 2.5 times for the broader US pharmaceuticals industry and 5.5 times across a closer peer set, the market is paying a substantial premium for Trevi’s balance sheet and its pipeline option value. That premium suggests investors are already factoring in a favorable outcome for Haduvio and future cash generation, despite the company being unprofitable, forecast to remain loss making for at least three years and currently generating less than one million dollars in revenue. With insufficient data to calculate a fair value via our DCF model or a price to book fair ratio, there is no quantitative anchor yet pointing to where this multiple could normalize. This leaves sentiment and trial milestones as the primary drivers. Compared with the industry, Trevi’s 8.2 times price to book looks aggressively priced next to the 2.5 times sector average and even runs hot relative to the 5.5 times peer group benchmark. The gap underlines how much more the market is willing to pay for Trevi’s story than for a typical US pharma or biotech balance sheet. See what the numbers say about this price — find out in our valuation breakdown. Result: Price to Book of 8.2x (OVERVALUED) However, setbacks in Haduvio’s clinical trials or delays in regulatory timelines could quickly puncture sentiment and challenge the lofty multiple that investors now endorse. Find out about the key risks to this Trevi Therapeutics narrative. Build Your Own Trevi Therapeutics Narrative If you see the story differently or want to dig into the numbers yourself, you can build a personalized Trevi view in just a few minutes: Do it your way. A great starting point for your Trevi Therapeutics research is our analysis highlighting 3 important warning signs that could impact your investment decision. Looking for more investment ideas? Before you move on, lock in your next potential opportunity by using the Simply Wall Street Screener to uncover stocks that match your strategy and risk appetite. Capitalize on mispriced opportunities by targeting these 919 undervalued stocks based on cash flows that the market may be overlooking today. Ride the wave of innovation by focusing on these 24 AI penny stocks positioned at the forefront of intelligent automation and data driven growth. Strengthen your income stream by zeroing in on these 13 dividend stocks with yields > 3% that can help support long term, reliable returns. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech