Celsius Holdings Inc (CELH)

[NewJerichoMan]

Historically, the average valuation put on a beverage company when it is sold is 6 x's revenue.

Far more often, it's less than 3x TTM. But they aren't usually publicly-traded.

Vitamin Water sold for 8 x's revenue.

The numbers often quoted is it sold for 6x FTM revenues, which of course it didn't hit; and it hasn't been accretive to $KO shareholders. BAI was reportedly doing $125M so that's like a 13x TTM multiplier and what was estimated at a 4x FTM multiplier, which of course, has already been revised downward. Won't be accretive to $DPS shareholders until Year 2, and probably not til Year 3.

But 4x and 6x FTM (future) multipliers are the top-end of the range.

Here's the caveat with that thinking: Bai was $125M and VitaminWater was $350M TTM revenue. It's a lot easier to grow exponentially from sub-$50M revenue, where Celsius is right now.

That said, does Celsius have potential to be a $1B product? How high is its ceiling? That's a discussion for another thread.

Considering Celsius is now at a $40M run rate

Celsius has done ~$16M in the first half of the year. It's run-rate isn't $40M yet. Can't take the biggest quarter of the year and multiply by 4.