A Fresh Look at monday.com (MNDY) Valuation Following Strong Profit and Revenue Guidance

monday.com (MNDY) just released its third quarter earnings, showing a switch from a loss to a profit and stronger sales compared to last year. The company also shared upbeat revenue guidance for the rest of 2025.

See our latest analysis for monday.com.

Despite monday.com's leap to profitability and strong revenue guidance, its share price momentum has faded this year, with a year-to-date share price return of -30.51%. However, long-term holders have still seen a three-year total shareholder return of nearly 66%, reflecting its persistent growth story even through recent volatility.

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With shares pulling back this year despite impressive earnings and bullish guidance, the key question is whether monday.com is now undervalued or if the market has already priced in its future growth potential.

Most Popular Narrative: 39.7% Undervalued

Compared to monday.com's last close price, the most popular narrative sets a fair value much higher, pointing to significant upside potential. This perspective hinges on powerful growth levers and platform innovations that could reshape future earnings.

“Ongoing global shift toward digital transformation, remote/hybrid work, and rising SaaS adoption continues fueling strong demand for cloud-based productivity and collaboration platforms like monday.com, supporting high double-digit revenue growth and future ARR expansion. Rapid integration of generative AI and low-code/no-code capabilities (e.g., Monday Magic, Vibe, Sidekick) enable broader automation and workflow customization. This strengthens platform differentiation and stickiness, which may improve customer retention, ARPU, and net margins as monetization scales.”

Read the complete narrative.

Want to know what powers monday.com's premium narrative? The story weaves together bold revenue expansion and margin moves that could surprise even savvy investors. The path to this valuation is paved with a mix of disruptive tech launches and strong recurring revenue signals. Which assumptions really tip the scales? See what else drives this ambitious price target.

Result: Fair Value of $266.33 (UNDERVALUED)

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

However, there are still risks to watch, such as slowing new customer growth and increased competition. These factors could temper even the most optimistic projections.

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

Another View: Market-Based Multiples Tell a Different Story

Looking through the lens of price-to-earnings, monday.com trades at a hefty 127.2x, far above the US Software industry average of 31.2x and the peer average of 37.5x. The fair ratio sits at 47.1x. This suggests the market has high expectations priced in. Does this signal risk, or could strong future growth close the gap?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own monday.com Narrative

If you see things differently or want to dive deeper into the numbers, you can craft your own story in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 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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