Madrigal Pharmaceuticals (MDGL) drew fresh attention after releasing new Phase 3 and real world data on its MASH drug Rezdiffra, ahead of detailed presentations at the EASL Congress 2026 in Barcelona.

The latest Rezdiffra data appear to be feeding into sentiment, with Madrigal’s 90 day share price return of 18.35% contrasting with a year to date share price decline of 11.15%, while the 1 year total shareholder return of 94.81% points to strong longer term gains.

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With Madrigal now valued at about US$12.1b, trading at US$527.67 and analysts' targets sitting higher, investors may ask whether the recent MASH momentum is underappreciated or whether the stock is already pricing in future growth.

Most Popular Narrative: 21.4% Undervalued

Simply Wall St's most followed narrative places Madrigal's fair value at about $671.07 per share versus the last close of $527.67. This frames the recent MASH driven strength against a higher long term valuation anchor.

The analyst price target for Madrigal Pharmaceuticals has been revised higher to $671.07, up from $603.47. Analysts now factor in updated assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E, following recent research that highlights both enthusiasm for Rezdiffra's commercial potential and some valuation concerns.

Curious what sits behind that higher fair value? The narrative leans heavily on rapid revenue expansion, a sharp earnings inflection and a richer future earnings multiple. The mix of patent life, MASH penetration assumptions and long term margins is doing a lot of heavy lifting in those models.

Result: Fair Value of $671.07 (UNDERVALUED)

However, this depends on Rezdiffra maintaining its current trajectory and avoiding clinical or safety setbacks, as well as on rivals and GLP 1s not compressing pricing or share.

Next Steps

With sentiment split between long term opportunity and near term uncertainty, it helps to review the key data yourself and move quickly to shape your own view with our 2 key rewards and 1 important warning sign.

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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.