Celsius Holdings (CELH) is back in focus after reporting first quarter 2026 results, with revenue and adjusted earnings per share above expectations, helped by Alani Nu and Rockstar integration and broader energy drink market share.

The Q1 beat and ongoing buyback arrive after a weak patch for investors, with a 90 day share price return of 32.25% decline and a 1 year total shareholder return of 2.78% decline. The recent 1 day gain of 4.45% suggests sentiment is starting to improve from a low base rather than showing sustained momentum.

If Celsius’s energy drink story has you looking at what else is moving, this could be a good moment to widen your search with our 18 top founder-led companies

So with Celsius trading well below its recent highs despite record Q1 revenue and earnings beating expectations, is the stock offering a discount on future growth, or is the market already pricing in everything ahead?

Most Popular Narrative: 38.2% Undervalued

At a last close of $34.26 versus a narrative fair value of $55.43, Celsius is framed as materially discounted, and that gap rests on some bold assumptions.

The ones who understood what actually happened in 2024 and why the crash was a channel inventory problem, not a brand problem, had the best entry point in a decade. This narrative is about understanding which of those two situations you are looking at right now, as the company enters an entirely new chapter.

Want to see what justifies that higher fair value? The narrative leans on strong earnings momentum, richer margins from scale and a premium profit multiple more often reserved for fast growing consumer platforms.

Result: Fair Value of $55.43 (UNDERVALUED)

However, this hinges on PepsiCo’s execution and its integration of Alani Nu and Rockstar, where any stumble on margins or market share could quickly flip the story.

Another View: Market Multiple Sends a Different Signal

The DCF narrative presents Celsius as 62.3% below a fair value of $90.83, but the P/E perspective is very different. At 76.9x earnings versus 18.2x for the global beverage industry, 48.7x for peers and a fair ratio of 29.7x, the stock appears expensive. Which signal would you rely on if sentiment shifts again?

Next Steps

Sentiment in this story is mixed, so do not wait on others to decide for you. Review the full picture yourself, including the 3 key rewards and 2 important warning signs.

Ready for more investing ideas?

If Celsius has sharpened your focus, do not stop here. Broaden your watchlist now so you are not looking back wishing you had acted earlier.

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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.