Celsius Holdings shares fell 5.5% to $29.12 on June 22, extending a slide that has left the stock near the bottom of its 52-week range. GuruFocus' proprietary GF Value model pegs the stock at $95.35, implying a 69.5% upside from current levels, though it also warns of a possible value trap.
Celsius Holdings Inc. shares fell 5.5% to $29.12 on June 22, bringing the energy-drink maker near the bottom of its 52-week range of $27.47 to $66.74.
"The current price is significantly below our GF Value estimate of $95.35, suggesting the stock is undervalued by approximately 69.5%," GuruFocus said in its analysis. "However, the GF Valuation label indicates a 'Possible Value Trap,' urging caution."
The stock trades at 67.7 times trailing earnings, well below its five-year median of 120.9 times, while the forward P/E of 17.8 points to expected earnings growth. Celsius scored 68 out of 100 on GuruFocus' GF Score, ranking above average among peers, with a Growth rank of 9 out of 10 offset by a Valuation rank of 2 out of 10. Insiders purchased $700,000 worth of shares over the past three months with no selling, indicating confidence from company executives.
The wide gap between market price and GF Value creates a potential entry point for value investors, but the value-trap warning suggests underlying risks — including a Momentum rank of just 2 out of 10 — that could prevent the stock from realizing that upside. With the stock trading near its 52-week low, the next test will be whether Celsius can deliver the earnings growth its forward multiple implies.
This article is for informational purposes only and does not constitute investment advice.
