Viking Therapeutics (VKTX) Could Be 120% Undervalued On Obesity Pipeline Progress
Simply Wall St
Wed, July 8, 2026 at 12:43 PM GMT+5:30
3 min read
- VKTX
+8.83%
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Viking Therapeutics (VKTX) recently started a Phase 1 single ascending dose clinical trial of VK3019, a dual amylin and calcitonin receptor agonist being studied as a potential weight loss treatment in adults with obesity
The VK3019 trial comes as Viking Therapeutics’ share price has been strong, with a 48.08% 30-day share price return and a 39.55% 1-year total shareholder return, suggesting momentum has been building as its obesity portfolio advances
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For Viking Therapeutics, the bullish story leans on obesity pipeline potential and recent share price momentum, while the bearish view highlights ongoing losses and execution risk. Which side does the current valuation appear to reward?
Most Popular Narrative: 54.6% Undervalued
The most followed valuation narrative for Viking Therapeutics suggests a fair value of $92.72 per share versus the last close at $42.13, framing a large implied upside that rests heavily on its 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, which could be a key driver of future revenue once the program moves beyond current net losses
Want to see what kind of revenue ramp, margin shift and future earnings multiple are baked into this view of Viking Therapeutics? The narrative leans on ambitious obesity trial progression, an eventual shift from losses to profits, and a premium valuation multiple that is far above typical biotech benchmarks. Curious which specific assumptions have to line up for that to hold?
Result: Fair Value of $92.72 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts
However, this Viking Therapeutics narrative could be challenged if VANQUISH trials stumble on efficacy or safety, or if rising R&D spend forces heavier shareholder dilution
Find out about the key risks to this Viking Therapeutics narrative
Another View: Viking Therapeutics Through The SWS DCF Model
The analyst narrative presents Viking Therapeutics as undervalued at a fair value of $92.72 per share, but the SWS DCF model suggests a different picture. On this cash flow based view, Viking Therapeutics appears overvalued, with the current $42.13 share price above an estimated future cash flow value of $14.02. Which perspective may better reflect the risks of a clinical stage biotech with no current revenue and ongoing losses?
