Recent commentary on Celsius Holdings (CELH) has focused on a mix of softer near term earnings expectations, relatively high valuation multiples compared with peers, and pressure on margins as expenses take a larger share of revenue.

Over the past year, Celsius Holdings has experienced a sharp reset in sentiment, with the share price down 39.52% year to date and a 1 year total shareholder return decline of 37.95%. The recent 7 day share price return of 1.44% contrasts with a weaker 90 day share price return of 13.97%, suggesting momentum has been fading as investors reassess growth and valuation after mixed earnings expectations and higher costs.

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Bulls argue Celsius Holdings still deserves a premium for its growth profile, while bears point to shrinking margins and a rich P/E after a sharp share price pullback. Which side does the current valuation actually support?

Most Popular Narrative: 47.9% Undervalued

According to the most followed Celsius Holdings narrative, a fair value of $55.43 sits well above the last close of $28.88. This frames today’s discount as unusually large.

A 17-Year Story That Most Investors Only Discovered in the Last Three. In 2010, Celsius Holdings (CELH) was generating roughly US$5 million in annual revenue, a forgotten energy drink with niche distribution in Scandinavian gyms and a handful of US health food stores. By the end of 2025, the company had crossed US$2 billion in trailing twelve-month revenue and acquired two major energy drink brands. It secured PepsiCo as both its primary distributor and an 11% equity holder. Most retail investors only discovered this stock near the peak in 2023. 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.

Want to understand why this narrative supports a much higher value for Celsius Holdings? The fair value leans heavily on stronger earnings, improving margins, and a richer profit multiple. Curious how those moving parts combine to justify almost double the current price? The full story connects them in a way the recent share price does not.

Result: Fair Value of $55.43 (UNDERVALUED)

However, Celsius Holdings still faces real pressure points, including a potential margin hit from Rockstar integration and the unresolved class action that could affect costs and investor trust.

Another View On Celsius Holdings Valuation

The popular narrative around Celsius Holdings leans heavily on a discounted cash flow view that flags the stock as cheap. The simple multiples picture is very different. At a P/E of 64.5x, Celsius trades far above the estimated fair ratio of 28.8x, the peer average of 47.2x, and the Global Beverage industry on 18x. That gap points to real valuation risk if expectations or sentiment reset again. Which yardstick do you trust more when you look at your own return hurdles and time frame?

For a closer look at how earnings, multiples, and expectations line up, it is worth reviewing See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With sentiment clearly split on Celsius Holdings, this is a good time to look beyond the headlines and examine the data directly. To evaluate both the concerns and the potential upside, review the 3 key rewards and 2 important warning signs

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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.