Is Monster Beverage Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Monster Beverage Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 45, a Price to Book Value of 10.56, and an EV to EBITDA ratio of 32.88. In comparison, peers such as The Coca-Cola Co. have a P/E of 38.37 and an EV to EBITDA of 35.39, while PepsiCo, Inc. shows a P/E of 25.36 and an EV to EBITDA of 17.16, highlighting the premium at which Monster is trading.
Despite its strong returns, with a year-to-date stock return of 33.60% compared to the S&P 500's 13.30%, the valuation metrics suggest that investors may be paying too much for future growth. Overall, the combination of high valuation ratios and the grade change points to Monster Beverage Corp. being overvalued in the current market environment.