Viking Therapeutics (VKTX) is back in focus as investors track upcoming clinical catalysts for its obesity drug VK2735, including Phase 1 maintenance trial results in Q3 2026 that could influence expectations for the stock.

Recent excitement around VK2735 has not prevented some cooling in the stock, with the share price down 16% year to date and the 90 day share price return also weaker, even as the 1 year and 5 year total shareholder returns remain positive.

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So with Viking shares down year to date but long term returns still positive, and clinical catalysts ahead, should you view current levels as an opportunity, or assume the market is already accounting for future growth potential?

Most Popular Narrative: 67.9% Undervalued

At a last close of $29.78 versus a narrative fair value of $92.72, Viking Therapeutics is framed as heavily discounted, with that gap tied directly to ambitious obesity drug expectations.

Advancement of VK2735 into large, late stage obesity trials, with both VANQUISH-1 and VANQUISH-2 designed around weight loss endpoints, positions the company to address growing medical demand for obesity treatments, which could be a key driver of future revenue once the program moves beyond current net losses.

Curious what needs to go right for that kind of upside to make sense? Revenue kicking in from scratch, margin lift from deep losses, and a valuation multiple more often seen in momentum stories all sit at the heart of this narrative.

Result: Fair Value of $92.72 (UNDERVALUED)

However, this upside story collides with real pressure points, including heavy R&D spend, ongoing net losses, and the risk that any VK2735 trial setback disrupts the whole thesis.

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Another View: Multiples Paint a Very Different Picture

That $92.72 fair value narrative clashes with how the market prices Viking today. On a P/B of 6.9x, the stock is far more expensive than both its peers at 4x and the US Biotechs average at 2.5x, which raises real questions about valuation risk if the story takes longer to play out.

To see what the numbers say about this price, and how that rich P/B compares with peers in detail, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and concern feels familiar, use it as a prompt to check the numbers, timelines, and risks yourself and act promptly. To round out your view, take a moment to review the 2 important warning signs

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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.