monday.com (MNDY): Evaluating Whether the Recent Share Price Slide Signals a Valuation Opportunity

monday.com (MNDY) has been on a choppy ride lately, with the stock sliding over the past month even as revenue and profit keep growing. That disconnect is exactly what has investors talking.

See our latest analysis for monday.com.

Over the past year, monday.com’s share price return has lost momentum, with a sharp 1 month share price return of minus 25.64 percent contributing to a year to date share price return of minus 33.99 percent. However, the 3 year total shareholder return remains positive at 48.79 percent, suggesting long term believers are still ahead despite the recent pullback.

If monday.com’s recent volatility has you reassessing your watchlist, this could be a good moment to see what else is setting up interestingly among high growth tech and AI stocks.

With revenue still climbing and analysts seeing upside versus today’s beaten down share price, the big question now is whether monday.com is quietly undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 35% Undervalued

With monday.com last closing at $152.52 against a narrative fair value of $234.58, the spotlight shifts to whether its growth runway justifies that gap.

Multi product strategy, with accelerated growth in CRM and Service verticals, expands total addressable market and drives more cross sell/upsell opportunities, increasing both seat expansion and average deal size translating to higher enterprise revenue and durable earnings growth.

Read the complete narrative.

Curious how a fast expanding product suite, rising margins, and ambitious earnings targets can all still point to upside from here? The narrative joins the dots. Unlock the full playbook behind this valuation call and see which long term assumptions really drive that higher fair value.

Result: Fair Value of $234.58 (UNDERVALUED)

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

However, execution missteps in shifting upmarket, or prolonged weakness in small business customer additions, could quickly challenge the upside case implied by this valuation.

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

Another Angle On Valuation

Price-based metrics paint a tougher picture. monday.com trades on a price-to-earnings ratio of 120.9 times, far richer than the US software sector at 31.7 times and peers at 37.6 times, and even well above a 43.7 times fair ratio, which raises real valuation risk if growth cools.

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 dig into the numbers yourself, you can spin up a personalised view in just 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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