monday.com (MNDY): Assessing Valuation as Analyst Views Diverge Following Earnings Growth Signals

Monday.com (MNDY) is grabbing the attention of investors following a wave of analyst coverage that highlights both upbeat earnings growth estimates and lingering doubts around the company's current valuation. The split in sentiment creates an interesting backdrop as the stock trades into the new quarter.

See our latest analysis for monday.com.

Momentum in monday.com’s share price has faded this year, with the stock last closing at $183.57 and showing a moderate decline over the past quarter. While recent earnings news and divided analyst opinions have fueled investor debate, the company’s 1-year total shareholder return slipped slightly into negative territory. This comes despite solid revenue and net income growth in recent periods.

If the buzz around monday.com’s mixed signals has you curious about new opportunities, consider expanding your watchlist and discover fast growing stocks with high insider ownership

With analysts split on whether monday.com’s earnings growth justifies its premium price, investors are left to ask: Is there real value left to unlock in the stock, or has the market already accounted for all future upside?

Most Popular Narrative: 32.6% Undervalued

Compared to monday.com's last close price, the most popular narrative estimates a fair value far above current levels, suggesting optimism about upside potential. This sets the stage for a closer look at the forces driving such a bullish perspective.

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, strengthening platform differentiation and stickiness. This is likely to improve customer retention, ARPU, and net margins as monetization scales.

Read the complete narrative.

Curious what powers this bold valuation? The narrative banks on industry-wide tech shifts and predicts an earnings trajectory more akin to Silicon Valley giants. Find out the ambitious projections and surprising margin assumptions that support such a high price outlook in the full story.

Result: Fair Value of $272.35 (UNDERVALUED)

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

However, heavy reliance on performance marketing and elevated spending could hinder growth if customer acquisition slows or if margin improvements fail to materialize.

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

Build Your Own monday.com Narrative

Not convinced by the consensus or want to see what your own analysis reveals? Build your perspective 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.

Looking for More Investment Ideas?

Set yourself up for smarter investing by tapping into fresh opportunities beyond monday.com. Don’t let today’s fast-moving markets leave you behind. Expand your watchlist with standout stocks you might otherwise miss.

• Tap into high potential by jumping on these 901 undervalued stocks based on cash flows poised for strong returns based on solid cash flow fundamentals.
• Power up your portfolio with leading-edge innovators among these 24 AI penny stocks, riding the momentum of artificial intelligence breakthroughs.
• Strengthen your passive income with these 19 dividend stocks with yields > 3% delivering attractive yields above 3% and consistent shareholder rewards.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com