Celsius Holdings Inc

CELH

Celsius Holdings Inc

@Stryker1029
1 year ago

Perform Discount Cashflow Analysis

Perform Discount Cashflow Analysis

I performed a DCF prior to Q3 results and and after Q3 given the low predictability of the business given their is less than 3 years of data. At around $30 the stock was undervalued prior to Q3 results. Mostly due to the huge growth and large orders from big distributors. Expected EPS Growth Rate (125%) could be achievable with a 15% margin of safety. After Q3 results are included the numbers change. $30 for the stock is overvalued making the stock a little too expensive. Expected EPS Growth Rate (22.82%) could be achievable with a -22.11% margin of safety.

Although data suggests the stock to be a less safe buy with less upside potential I still see the contrary. With a PE of 29.6 the stock sits in the range of being over sold and cheaper than other stock within the industry leaving me to conclude it is within range of being a good buy.