Is It Too Late To Consider Monster After Its 41% 2025 Surge?

• If you are wondering whether Monster Beverage still makes sense at its current price after a strong run, or if you are late to the party, this breakdown will help you assess whether the valuation looks reasonable.
• The stock has dipped about 1.4% over the last week, but it is still up 10.6% over the past month and 41.4% year to date, with a 39.3% gain over the last year and 68.1% over five years.
• Recent headlines have focused on Monster's ongoing brand strength in the energy drink space and its continued global expansion. Analysts have highlighted how the company is defending share in a crowded market while pushing into new geographies and product categories. This combination of competitive resilience and growth initiatives helps explain why investors have been willing to pay a higher price for the stock despite periods of short term volatility.
• Despite that momentum, Monster currently scores just 0/6 on our valuation checks, which means traditional metrics do not flag it as undervalued. In the sections ahead, we will unpack what different valuation approaches suggest about the current price tag, then conclude with a broader way to think about Monster's overall worth.

Monster Beverage scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Monster Beverage Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company is worth by projecting the cash it can generate in the future and then discounting those cash flows back to a value in today’s dollars.

For Monster Beverage, the latest twelve month free cash flow is about $1.9 billion. Analysts expect this figure to keep rising, with Simply Wall St modeling a 2 Stage Free Cash Flow to Equity approach that extends analyst forecasts and then extrapolates growth further out. Under this framework, Monster’s free cash flow is projected to reach roughly $3.0 billion by 2035, based on a gradual slowdown in annual growth over time.

When all those projected cash flows are discounted back, the model arrives at an intrinsic value of about $61.99 per share. Compared with the current share price, the DCF implies Monster is around 19.3% overvalued, suggesting investors are paying a premium for its growth story.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Monster Beverage may be overvalued by 19.3%. Discover 919 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Monster Beverage.

Approach 2: Monster Beverage Price vs Earnings

For profitable companies like Monster Beverage, the price to earnings, or PE, ratio is a useful way to gauge how much investors are willing to pay today for each dollar of current earnings. In general, faster growth and lower perceived risk justify a higher, or more expensive, PE multiple, while slower or more volatile businesses tend to trade on lower multiples.

Monster currently trades on a PE of about 41.86x, which is well above both the broader Beverage industry average of roughly 17.64x and the peer group average of around 22.67x. To move beyond simple comparisons, Simply Wall St also calculates a proprietary “Fair Ratio” of 23.23x. This reflects what a reasonable PE might be once factors such as earnings growth, profitability, industry, company size and specific risks are taken into account.

This Fair Ratio approach is more tailored than using peers or industry averages alone, because it adjusts for Monster’s strengths and risks rather than assuming all beverage companies deserve the same multiple. When you set the current PE of 41.86x against the Fair Ratio of 23.23x, Monster looks meaningfully expensive on an earnings basis.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Monster Beverage Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Monster Beverage’s future with a clear financial forecast and a fair value estimate that you can easily compare to today’s share price.

A Narrative is the story behind your numbers, where you spell out how you think Monster’s revenues, earnings and margins will evolve, and the platform automatically translates that story into projected financials and a fair value that updates as new news or earnings arrive.

On Simply Wall St’s Community page, used by millions of investors, Narratives make this process accessible by guiding you to link Monster’s business drivers to forward estimates and then showing whether your fair value suggests the stock is a buy, hold, or sell relative to the current price.

For example, one Monster investor might build a bullish Narrative closer to a fair value of about $75 per share. A more cautious investor might anchor nearer $50. Both perspectives are continuously refreshed as new information flows in, giving each investor a dynamic, decision ready view of whether Monster still fits their thesis.

Do you think there's more to the story for Monster Beverage? Head over to our Community to see what others are saying!

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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