Celsius (CELH) Stock Looks Rich On Earnings Even After A 55% Fall

Celsius Holdings stock has seen a steep reset over the past few years, yet the valuation checks still lean toward the shares looking expensive rather than obviously cheap. After a sharp decline in the share price, investors are weighing up whether the current level properly reflects the business risks and opportunities now on the table.

• Celsius Holdings has fallen about 55% over the past 3 years, which puts recent trading firmly in a recovery phase rather than a momentum phase for existing shareholders.
• Management changes and portfolio refocusing can support long term earnings power, while public criticism from a large shareholder and questions over execution may keep a cloud over what investors are willing to pay for the stock.
• The company scores 2 out of 6 on valuation checks, which points to Celsius Holdings not standing out as a clear bargain on the broader measures used here.

The issue now is whether Celsius Holdings’ current share price still embeds too much optimism for its prospects, or if the recent pullback has reset expectations enough to be reasonable.

Find out why Celsius Holdings' -49.6% return over the last year is lagging behind its peers.

Does Celsius Holdings Look Pricey on Earnings?

P/E is a useful cross check for Celsius Holdings, since the company is profitable and investors often look at earnings as a core anchor for value in consumer brands.

Celsius Holdings currently trades on a P/E of about 105.4x, which is well above the Beverage industry average of around 17.9x and also above the peer group average of roughly 37.1x. The fair P/E ratio from the model is about 30.6x. That is far below the market multiple investors are currently paying, so the stock sits at a significant premium to what this framework suggests is reasonable once growth, margins, size and risks are taken into account. With the recent earnings miss and vocal criticism from a large shareholder still fresh in August 2026, this premium indicates that the market is continuing to place a high value on Celsius Holdings despite recent setbacks.

On this P/E basis, Celsius Holdings stock appears clearly overvalued relative to both its own fair multiple and the wider Beverage sector.

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

The Celsius Holdings Narrative: What Would Justify Today's Price?

Simply Wall St Narratives for Celsius Holdings pick up where the P/E puzzle leaves off and spell out what kind of future for growth, margins and earnings would need to play out for the stock to look meaningfully more expensive or cheaper than it does today, all within the Community page. Each narrative links its valuation number to a clear view of how Celsius Holdings' growth, profitability and risk profile could evolve. This gives you something concrete to revisit as fresh results and news come through.

One of the top community narratives on Celsius Holdings: 51% undervalued

"This narrative is about understanding which of those two situations you are looking at right now, as the company enters an entirely new chapter…"

Read one of the top narratives on Celsius Holdings

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

The Bottom Line

Celsius Holdings still screens as overvalued on market multiples, and the extreme gap between its current P/E and the sector suggests expectations remain very high. The low overall value score underlines that most broad checks do not yet frame this as a clear bargain, even after the reset in sentiment. From here, the key question is whether Celsius Holdings can deliver on growth and execution strongly enough to sustain such a rich multiple, or whether the market eventually reins in what it is prepared to pay for the stock.

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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