Why Celsius Holdings Is Back on Investors’ Radar

Celsius Holdings (CELH) is drawing fresh attention as investors react to rapid revenue growth, broader distribution across key channels, and operating margins around 20%, all alongside new leadership additions tied to major beverage industry experience.

After a mixed few months, with a 19.63% 1 month share price return offset by an 11.89% 3 month share price decline, Celsius Holdings now trades at US$54.54, while its 1 year total shareholder return of 114.89% points to strong longer term momentum.

If Celsius’s surge has caught your attention, this could be a good moment to see what else is moving in high growth tech and AI stocks via high growth tech and AI stocks.

With Celsius now earning a premium label from some analysts, trading at US$54.54 and sitting roughly 23% below one intrinsic value estimate, you have to ask: is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 15.5% Undervalued

At $54.54, Celsius Holdings trades below a most-followed fair value estimate of $64.52, which is built around ambitious growth and profitability assumptions.

Expansion of distribution and increased activation through leading partners (PepsiCo in North America, Suntory internationally) is accelerating store count, new market entries, and international growth (27% YoY). This provides exposure to broader health and wellness trends globally and underpins expectations for long-term revenue expansion.

Curious what kind of revenue curve, margin rebuild, and future earnings multiple would justify that gap to fair value? The narrative spells out a bold growth and profitability path, as well as the trade off between rapid expansion and dilution from new share issuance.

Result: Fair Value of $64.52 (UNDERVALUED)

However, you still need to factor in risks such as rising input costs that may pressure margins, along with heavy reliance on major distributors that could unsettle the growth story.

Another Way To Look At Valuation

The first view paints Celsius as undervalued, but the P/S ratio tells a tougher story. At 6.6x sales, the shares sit well above the US Beverage industry at 2x, peers at 1.6x, and a fair ratio of 3.4x. That gap suggests valuation risk if sentiment cools. How much optimism are you really paying for?

Build Your Own Celsius Holdings Narrative

If you see the numbers differently, or prefer to test your own view against the data, you can build a custom Celsius story in minutes by starting with Do it your way.

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

Looking for more investment ideas?

If Celsius has sparked your interest, do not stop there. Cast a wider net with a few focused stock ideas that might suit different parts of your portfolio.

• Spot potential high growth stories early by scanning these 3514 penny stocks with strong financials that already show solid financial underpinnings.
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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.