Celsius Holdings (CELH): Valuation in Focus After Q3 Revenue Beat, Acquisitions, and Stock Pullback

Celsius Holdings (CELH) just delivered an impressive revenue jump for Q3 2025, outpacing forecasts and drawing attention with strong core brand results and new acquisitions. However, the stock slid as investors weighed concerns around PepsiCo-related distribution changes and costs.

See our latest analysis for Celsius Holdings.

Celsius Holdings’ shares took a sharp hit recently, dropping nearly 25% over the past week, despite a standout Q3 marked by surging revenues and bold moves like expanding the PepsiCo partnership and acquiring Rockstar Energy. The 1-year total shareholder return still sits at an impressive 63%, highlighting the company’s longer-term growth story even as sentiment towards operational risks and integration costs has dented near-term momentum.

If the action in Celsius leaves you wondering what other fast-rising names might be turning heads, now’s a great moment to broaden your outlook and discover fast growing stocks with high insider ownership

With shares now trading well below analyst price targets after a historic revenue surge, the key question is whether Celsius is truly undervalued or if the market has already priced in its next chapter of growth. Could this be a buying opportunity, or is caution still warranted?

Most Popular Narrative: 35.4% Undervalued

With Celsius Holdings closing at $44.56, the most widely followed narrative assigns a fair value near $69, suggesting a sizable margin between current trading and where consensus expects shares to go. This gap is driven by bullish assumptions around recent acquisitions, future earnings growth, and anticipated margin expansion as new partnerships begin to pay off.

“Strategic innovation and successful limited time offers are attracting incremental consumers and driving higher velocity at retail, with both brands showing sustained strength from new flavors and SKUs targeting the evolving on-the-go, wellness-oriented lifestyles, supporting further market share gains and top-line growth.”

Read the complete narrative.

Want to know the math behind this double-digit gap? The narrative’s fair value rests on unusually ambitious growth, bolder profit margin targets, and a future earnings multiple that rivals top-tier consumer brands. Curious how much faster sales and profits have to soar to justify this price? Dive into the full narrative for the specifics that set this valuation apart from the market’s.

Result: Fair Value of $68.95 (UNDERVALUED)

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

However, risks remain if the execution of recent brand integrations falters or if rising costs weigh more heavily on margins than anticipated.

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

Another View: Looking Beyond the Market’s Narrative

While the current narrative paints Celsius Holdings as significantly undervalued, another lens tells a more cautious story. Using our primary valuation metric, Celsius’s price-to-sales ratio sits at 5.4x. That is far above both the US Beverage industry average of 2.1x and the typical peer at 1.5x. Even compared to our fair ratio estimate of 3.6x, the shares still look expensive, suggesting investors are paying a hefty premium for future growth. The gap could mean greater upside if the bullish story holds, but what happens if high expectations start to unwind?

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

Build Your Own Celsius Holdings Narrative

If you find your perspective differs from the consensus or you want a firsthand look at the data, it’s easy to build your own Celsius narrative in just a few minutes. Do it your way

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

Looking for More Investment Ideas?

Smart investors stay ahead by seeking out promising trends and unique opportunities before they hit the headlines. Don’t let the next big winner slip by you.

• Uncover potential in tomorrow’s tech by tracking these 24 AI penny stocks, which are making waves in artificial intelligence and redefining what is possible in the digital world.
• Capture strong cash flow opportunities and boost portfolio value with these 874 undervalued stocks based on cash flows, which are trading at compelling discounts based on their fundamentals.
• Supercharge your hunt for income with these 16 dividend stocks with yields > 3%, which consistently offer high yields to help you build a stronger, more resilient portfolio.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com