A Fresh Look at monday.com (MNDY) Valuation After Earnings Beat and Upbeat Growth Outlook

monday.com (MNDY) caught investor attention after its latest earnings report showed quarterly revenues surpassing expectations, along with positive management comments regarding operational efficiency and sustained growth momentum for the future.

See our latest analysis for monday.com.

After a rollercoaster year that’s included a standout quarterly beat and some sharp pullbacks, monday.com’s share price is currently at $189.59. The short-term ups and downs, such as a recent 4.73% one-day pop and a choppy 7.63% slide over the past week, contrast with a much steeper 1-year total shareholder return of -41.54%. However, long-term holders have still nearly doubled their money, as the 3-year total return stands at 99.17%. Momentum appears to be building again after a challenging stretch earlier in the year.

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With robust revenue growth and management’s upbeat outlook, investors now face a crucial question: Is monday.com still undervalued at current levels, or has the market already factored in all the potential future gains?

Most Popular Narrative: 28.8% Undervalued

The current fair value estimate of $266.33 stands well above monday.com's last close at $189.59, signaling the leading narrative views substantial upside ahead. What’s driving this optimistic scenario? See what the most followed analysis highlights as the core catalyst for future returns.

Multi-product strategy, with accelerated growth in CRM and Service verticals, expands total addressable market and drives more cross-sell/upsell opportunities. This increases both seat expansion and average deal size, translating to higher enterprise revenue and durable earnings growth. Upmarket momentum and record enterprise customer adds (over $100K ARR) point to sustained large-account penetration. This enhances recurring revenue visibility and supports margin improvement through operating leverage as sales and R&D investments normalize.

Read the complete narrative.

Eager to discover why analysts are so bullish? Hidden beneath this headline figure are aggressive revenue and profit forecasts, plus bold assumptions about long-term margin expansion and enterprise growth. Unpack the controversial projections that power this fair value estimate.

Result: Fair Value of $266.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained margin gains could be challenged if customer additions slow or if competition from bigger software rivals intensifies, which could temper the bullish outlook.

Find out about the key risks to this monday.com narrative.

Build Your Own monday.com Narrative

If you want to dive deeper and come to your own conclusions, you can quickly generate your own personalized view in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding monday.com.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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