Has Celsius Holdings (CELH -0.11%) become an expensive stock? Investors who don't examine the stock closely might believe so. Its price-to-earnings (P/E) ratio now exceeds 143, a dramatic surge from last fall, when it fell to just above 30.

Nonetheless, a less commonly cited financial metric may cause investors to rethink its valuation. The question for investors is whether evaluating that metric might change perceptions of Celsius' valuation and the stock's value proposition in general.

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What one financial metric says

The financial metric that might cause investors to view Celsius differently is the forward P/E ratio. Instead of measuring trailing earnings like the standard earnings multiple, the forward P/E measures the price divided by the expected earnings over the following 12 months.

In this case, the forward P/E ratio stands at about 55. This is far below early 2024 levels, when the forward earnings multiple briefly surpassed 140 amid a higher stock price. Still, it is higher than mid-February, when the forward P/E had fallen as low as 26.

CELH PE Ratio (Forward) data by YCharts.

Additionally, its earnings growth had again turned positive. In the first quarter of 2025, net income fell to $44 million, versus $78 million in the year-ago quarter. Consequently, the lower profits pushed the trailing P/E ratio higher.

Now, analysts forecast 18% higher earnings in 2025 and 40% profit growth in the following year. Such earnings increases likely mean Celsius will generate enough growth to justify its 55 forward P/E ratio.

Furthermore, despite gaining more than 70% year to date, it may surprise investors to see that Celsius stock sells at almost a 55% discount to the all-time high reached in early 2024. This leaves plenty of room for the beverage stock to go higher as it surges back toward record highs.