At US$193, Is monday.com Ltd. (NASDAQ:MNDY) Worth Looking At Closely?

monday.com Ltd. (NASDAQ:MNDY), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$236 and falling to the lows of US$185. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether monday.com's current trading price of US$193 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at monday.com’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for monday.com

What Is monday.com Worth?

Great news for investors – monday.com is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $275.05, but it is currently trading at US$193 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, monday.com’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will monday.com generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -4.7% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for monday.com. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although MNDY is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to MNDY, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on MNDY for some time, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 1 warning sign with monday.com, and understanding it should be part of your investment process.

If you are no longer interested in monday.com, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.