monday.com (MNDY) Could Be 19% Undervalued After AI Restructuring And 2026 Guidance

Restructuring puts monday.com stock under the spotlight

monday.com (NasdaqGS:MNDY) is in focus after launching a restructuring plan that cuts about 20% of its workforce and prioritizes its AI Work Platform, while also reiterating 2026 revenue growth guidance of 19% to 20%.

See our latest analysis for monday.com.

The restructuring headline has arrived after a strong short term rebound in monday.com’s share price, with a 19.81% 90 day share price return. However, longer term total shareholder returns remain weak, with the 1 year total shareholder return declining 65.22%.

If monday.com’s renewed AI focus has caught your attention, this is a good moment to scan the wider field of listed AI platforms using our screener for 33 AI small caps

Bulls see monday.com’s AI pivot and reiterated 2026 guidance as evidence that the sell-off has gone too far. Bears point to multi-year share price losses and restructuring risk. Which story do the numbers support as you weigh valuation next?

Most Popular Narrative: 19.4% Undervalued

At a last close of $87.15 against a narrative fair value of $108.13, monday.com is framed as undervalued in the most widely followed storyline.

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, likely improving customer retention, ARPU, and net margins as monetization scales.

Read the complete narrative.

Curious what justifies that higher fair value for monday.com? The narrative emphasizes compound revenue growth, changing profit margins, and a substantial future earnings multiple. The exact mix might surprise you.

Result: Fair Value of $108.13 (UNDERVALUED)

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

However, a heavier reliance on performance marketing and rising competition in work management and AI tools could weaken monday.com’s growth story and put pressure on valuation expectations.

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

Another view on monday.com valuation

The analyst narrative presents monday.com as undervalued, yet the current P/E ratio of 31.3x sits above the US Software industry average of 29x, a peer average of 29.3x, and a fair ratio of 21.3x. That premium suggests less room for error. How comfortable are you paying this valuation for the company?

To see how this premium compares in more detail, along with how other companies are priced using the same yardstick, take a closer look at our valuation breakdown with the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mixed signals around monday.com leave you unsure, consider this an opportunity to move quickly and review the data yourself. You can weigh the concerns and bright spots side by side by reviewing the 3 key rewards and 1 important warning sign

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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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