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    Viking Therapeutics (VKTX): Valuation Check After Faster-Than-Expected Enrollment in Key Obesity Drug Trial

    Simply Wall St·12/07/2025 20:09:58
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    Viking Therapeutics (VKTX) is back in the spotlight after finishing patient enrollment for its Phase 3 VANQUISH-1 trial of obesity drug candidate VK2735 ahead of schedule, a pace that points to strong underlying demand.

    See our latest analysis for Viking Therapeutics.

    The stock has been choppy this year, with a negative year to date share price return despite a powerful 90 day share price return of 51.3 percent. However, the three year total shareholder return of 947.6 percent shows momentum has been building over the longer term as investors reprice Viking’s obesity pipeline potential.

    If this kind of trial driven story has your attention, it could be a good moment to explore other potential beneficiaries of healthcare innovation through healthcare stocks and see what else fits your strategy.

    With shares still down over the past year, yet trading at a small premium to consensus targets, investors now face a key question: is Viking Therapeutics quietly undervalued, or is the market already discounting its next leg of growth?

    Price to Book of 6.1 times, is it justified?

    Viking Therapeutics last closed at $38.55, and the stock trades on a price to book ratio that looks rich against the wider biotech space.

    The price to book multiple compares a company’s market value to its net assets, which matters for development stage biotechs that have minimal revenue and negative earnings. At 6.1 times book value, investors are paying a substantial premium for Viking’s research platform and obesity pipeline rather than its current balance sheet.

    Compared to the average US biotech price to book of 2.7 times, Viking changes hands at more than double the sector’s going rate, a signal that markets see its assets as higher potential than a typical peer. Yet relative to its closer peer group, where the average stands at 7.9 times, Viking actually screens as better value. This hints that if sentiment stays bullish around obesity and metabolic franchises, there could still be room for its multiple to converge upward toward that peer benchmark.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price to book of 6.1 times (ABOUT RIGHT)

    However, investors must weigh clinical trial setbacks or dilution from future capital raises, either of which could quickly unwind recent optimism around Viking’s pipeline.

    Find out about the key risks to this Viking Therapeutics narrative.

    Build Your Own Viking Therapeutics Narrative

    If you would rather interrogate the numbers yourself and reach your own conclusions, you can build a personalised view in just a few minutes: Do it your way.

    A great starting point for your Viking Therapeutics research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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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.