CELH is now overvalued and could go down -36%

Based on our analysis, Celsius Holdings has received an overvalued rating of 1 out of 5 stars from Cashu. This assessment is primarily driven by several key financial ratios that indicate the company may be overextending its valuation compared to its sector. One notable metric is the Price-to-Earnings (PE) Ratio, which stands at 62.06, significantly higher than the sector average of 19.43. A high PE ratio suggests that investors are paying more for each dollar of earnings, indicating potentially inflated expectations for future growth. Additionally, the Price-to-Book (PB) Ratio for Celsius is 5.06, compared to the sector’s 2.17. The PB ratio assesses a company’s market value relative to its book value. A high PB ratio can indicate that the stock is overvalued relative to its assets. Furthermore, the Dividend Yield for Celsius is just 0.31, well below the sector average of 2.25. A low dividend yield may deter income-focused investors, as it indicates that the company returns less cash to shareholders through dividends. Lastly, the Return on Assets (ROA) Ratio stands at 8.21, while the sector averages -10.32. Although Celsius has a positive ROA, it still suggests that the company’s efficiency in using assets to generate earnings may not be as strong as it appears when compared to the sector. These financial ratios collectively suggest that Celsius Holdings is trading at a premium, raising concerns about its valuation in the current market landscape. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.