Viking Therapeutics (VKTX) has kicked off a Phase 1 trial of VK3019, a dual amylin and calcitonin receptor agonist for obesity, placing a new clinical asset in front of investors.

The VK3019 trial lands during a strong run for Viking Therapeutics, with the share price at US$38.04 and a 7 day share price return of 17.52%. This has contributed to a 1 year total shareholder return of 43.55% and a 5 year total shareholder return above 5x. Together, these figures point to momentum that investors are watching closely around obesity program updates.

If VKTX’s obesity pipeline has your attention, it may be a good time to scan other high growth healthcare names using our screener for 40 healthcare AI stocks

With Viking Therapeutics now valued at US$4.42b and the stock up 17.52% in a week and more than 5x over five years, investors may be wondering whether there is still meaningful upside potential or whether the market is already pricing in a significant amount of future growth.

Most Popular Narrative: 59% Undervalued

Against Viking Therapeutics' last close at $38.04, the most widely followed narrative points to a fair value of $92.72, implying a large valuation gap driven by obesity pipeline expectations and future earning power rather than current financials.

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. This development could be a key driver of future revenue once the program moves beyond current net losses.

Read the complete narrative. Read the complete narrative.

Want to understand why a company with no current revenue still lands a much higher fair value? The narrative focuses on projected obesity treatment revenue, margin uplift from current loss making levels, and a future earnings multiple that sits above typical biotech benchmarks. The full breakdown shows how those pieces are combined into a discounted value using a 7.06% rate without relying on current profitability.

Result: Fair Value of $92.72 (UNDERVALUED)

However, the Viking Therapeutics story still depends heavily on successful VK2735 trials and ongoing high R&D spend, which could require further equity raises and dilute existing shareholders.

Another View on Viking Therapeutics’ Valuation

While the prevailing narrative for Viking Therapeutics leans on long term obesity revenue potential to support a fair value of $92.72, the current P/B ratio of 8.8x compared with the US Biotechs industry at 2.6x suggests the stock is already priced well above the broader group, even if it is in line with peers at 8.8x. With no fair ratio available to indicate where the market could eventually settle, investors are essentially betting on which yardstick will matter more over time.

Next Steps

If the mixed signals around Viking Therapeutics leave you undecided, it may be helpful to move quickly from headline impressions to the underlying data and risks. A good place to start is by reviewing the company's 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.