Madrigal Pharmaceuticals (MDGL) is back in focus after new Phase 3 and real world data presented at the EASL Congress 2026 linked its MASH drug Rezdiffra to improved liver and cardiovascular risk markers.

Despite a recent pullback, including a 7 day share price return of down 4.5% and some profit taking after insider sales, Madrigal’s 1 year total shareholder return of about 80% and 5 year total shareholder return of over 3.5x suggest longer term momentum has been strong. Near term enthusiasm has cooled as investors reassess risk after the EASL data and upcoming conference appearances.

If this kind of MASH and cardiometabolic story has your attention, it can be useful to compare Madrigal with other potential healthcare AI beneficiaries using our curated screener of 40 healthcare AI stocks

With Madrigal now valued at about US$11.3b, a recent pullback, strong multi year returns, and analysts pointing to upside from current levels, the key question for you is whether there is still mispricing here or if the stock already reflects the future growth story.

Most Popular Narrative: 26.6% Undervalued

Against Madrigal’s last close of $492.83, the most followed narrative pegs fair value at about $671.07, framing a sizeable valuation gap to interrogate.

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 bridge? Revenue trajectories, margin shifts and a richer future earnings multiple all pull weight in this narrative.

Result: Fair Value of $671.07 (UNDERVALUED)

However, this hinges on Rezdiffra staying on track and on competition not squeezing pricing or market share, both of which could quickly challenge that undervaluation story.

Next Steps

With sentiment clearly split between concern about risks and optimism around potential rewards, it makes sense to review the data now and decide where you stand, starting with the 3 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.