Celsius (CELH) Valuation Check After Strong Year-to-Date Gains and Recent 3-Month Pullback

Celsius Holdings (CELH) has been a roller coaster for investors lately, with the stock up roughly 59% year to date but down about 23% over the past 3 months.

See our latest analysis for Celsius Holdings.

With the share price now at $43.15, that sharp 90 day share price pullback sits against a much stronger year to date share price return and solid multi year total shareholder returns. This suggests momentum has cooled, but the growth story is still very much alive.

If Celsius volatility has you rethinking your next move, this could be a good moment to explore fast growing stocks with high insider ownership for other high potential ideas on your radar.

With revenue still growing double digits, profits accelerating, and the stock trading well below analyst targets, investors face a key question: Is Celsius now undervalued, or is the market already pricing in years of rapid growth?

Most Popular Narrative: 33.1% Undervalued

With Celsius last closing at $43.15 against a narrative fair value near the mid $60s, the valuation gap hinges on aggressive growth and margin expansion.

Analysts are assuming Celsius Holdings's revenue will grow by 30.1% annually over the next 3 years. In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 47.7x on those 2028 earnings, down from 150.7x today.

Read the complete narrative.

Want to see what powers that steep earnings climb and premium multiple? The narrative leans on bold revenue compounding and margin reset assumptions. Curious which levers really move the model?

Result: Fair Value of $64.52 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising input costs and dependence on major distributors could quickly pressure margins and growth expectations, challenging the optimistic valuation narrative.

Find out about the key risks to this Celsius Holdings narrative.

Another View on Valuation

Looking at Celsius through its price to sales ratio tells a different story. The stock trades around 5.2 times sales, far richer than the US Beverage industry at 2.4 times and peers at 2.2 times, and well above a fair ratio of 3.7 times. That premium could shrink fast if growth stumbles, or widen if execution keeps beating expectations. Which outcome do you find more believable?

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

Build Your Own Celsius Holdings Narrative

If you are not fully aligned with this view or would rather dig into the numbers yourself, you can build a custom narrative in just a few minutes, Do it your way.

A great starting point for your Celsius Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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Before you make your next move, consider scanning other opportunities that could complement or even outperform your Celsius position.

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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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