Viking Therapeutics (VKTX) drew fresh attention after presenting new Phase 2 data on its oral obesity drug candidate VK2735 at the European Congress on Obesity. The company highlighted weight loss efficacy, dose response, and safety over a 13-week period.

Despite the fresh VK2735 data, Viking Therapeutics’ share price return has been mixed recently, with a 1-day gain of 1.26% and the 30-day share price return down 9.41%. However, the 1-year total shareholder return of 19.36% and very large 5-year total shareholder return suggest longer term momentum remains intact.

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With the oral VK2735 data in hand and Viking’s share price pulling back over the past month, the key question is whether the current valuation still understates the company’s potential in obesity or if the market is already pricing in strong growth.

Most Popular Narrative: 65.8% Undervalued

Against a last close of $31.72, the most followed narrative pegs Viking Therapeutics’ fair value at $92.72, anchoring a markedly higher long term view on VK2735 and the broader obesity pipeline.

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

Want to understand why this narrative supports such a large gap to the current share price? The entire case leans on future revenue from obesity drugs, margin expansion from today’s losses, and a projected earnings multiple that sits far above typical biotech levels. The interesting part is how these assumptions fit together and what they imply for 2029.

Result: Fair Value of $92.72 (UNDERVALUED)

However, this bullish narrative still hinges on successful VK2735 trials and careful cash management, since trial setbacks or heavier spending could quickly challenge today’s valuation gap.

Another View: What The P/B Ratio Is Signaling

The SWS DCF model points to upside, but the simple P/B check tells a different story. Viking Therapeutics trades at a P/B of 7.2x, compared with 2.4x for the US Biotechs industry and 5.3x for peers. This suggests investors are already paying a premium that could cut both ways.

To see how that premium stacks up against the numbers and where the market could shift next, take a closer look at the valuation breakdown with See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With such a split between upside potential and real concerns, it makes sense to act promptly and evaluate the data independently, beginning with 1 key reward and 2 important warning signs

Looking for more investment ideas?

If Viking is already on your radar, do not stop there. The broader opportunity set is where you may find your next standout idea.

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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.