Viking Therapeutics (VKTX): Evaluating Valuation After New Obesity Drug Data Spurs Fresh Interest

Viking Therapeutics attracted fresh attention after presenting new VK2735 clinical trial data at ObesityWeek 2025. The company’s Phase 2 results revealed sustained weight loss, improved metabolic profiles, and a promising safety record for patients.

See our latest analysis for Viking Therapeutics.

Viking Therapeutics’ share price has seen some dramatic swings, with October’s 44.9% rally fueled by excitement over VK2735’s clinical progress and renewed acquisition speculation. Despite this momentum, the 1-year total shareholder return remains deeply negative at -46.3%, highlighting that the path has been volatile. Long-term holders still see multi-fold gains over three and five years. Overall, while the stock’s latest moves show renewed optimism, investor sentiment continues to hinge on the company’s ability to deliver on its ambitious metabolic drug pipeline.

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With clinical milestones and takeover chatter driving renewed buzz, investors are left wondering if the current price reflects all of Viking’s future potential, or if there is still a real buying opportunity left on the table.

Price-to-Book of 5.8x: Is it justified?

Viking Therapeutics trades at a price-to-book ratio of 5.8x, which is higher than both its immediate biotech peers and the industry average. This premium valuation invites scrutiny, especially given the company's lack of meaningful revenue and ongoing unprofitability.

The price-to-book ratio compares a company's market value to its book value and suggests what investors are willing to pay for each dollar of net assets. In the biotech space, high ratios may reflect the value of proprietary technologies or strong clinical prospects. However, when a firm has yet to generate revenue, this premium becomes a bet on future breakthroughs rather than current fundamentals.

Compared to the US biotech industry average of 2.4x and a peer group average of 5.3x, Viking's 5.8x stands out as expensive. With no revenue expected in the coming year and substantial annual net losses, such a valuation implies high market confidence in VK2735 or future pipeline success rather than support from financial performance. There is insufficient data to provide a fair ratio, so investors lack a data-driven anchor for what the multiple should be.

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

Result: Price-to-Book of 5.8x (OVERVALUED)

However, continued net losses and the absence of recurring revenue remain key risks that could temper optimism around Viking Therapeutics’ lofty valuation.

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

Build Your Own Viking Therapeutics Narrative

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A great starting point for your Viking Therapeutics research is our analysis highlighting 5 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.

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