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 increase in perceived overvaluation. The company is currently considered overvalued based on its high valuation metrics, including 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 to its peers, Monster Beverage Corp. has a higher P/E ratio than The Coca-Cola Co., which stands at 38.37, and is also more expensive than PepsiCo, Inc., with a P/E of 25.36. Additionally, the company's return performance has been mixed; while it has outperformed the S&P 500 year-to-date with a return of 33.60% compared to 13.30%, its 3-year and 5-year returns of 57.13% and 73.90% respectively lag behind the S&P 500's returns of 81.19% and 91.29%. This suggests that despite strong recent performance, the high valuation ratios indicate that Monster Beverage Corp. may not sustain this growth in the long term.