monday.com (MNDY): Revisiting Valuation After Guggenheim’s New ‘Buy’ Rating and Fresh Gartner Leadership Recognition

monday.com (MNDY) just caught fresh attention after Guggenheim kicked off coverage with a positive view, as the company racks up multiple Leader badges across Gartner Magic Quadrant reports, reinforcing its position in modern work management software.

See our latest analysis for monday.com.

Despite a series of upbeat signals, including Guggenheim’s bullish initiation and fresh Gartner leadership nods, monday.com’s share price return tells a more cautious story. The stock has experienced a roughly 30 percent year to date decline and a one year total shareholder return of about negative 43 percent, suggesting sentiment is still rebuilding around its longer term growth case.

If you like what monday.com is doing and want to see what else is shaping the digital workplace, now is a good time to explore high growth tech and AI stocks.

With shares down sharply even as growth, profitability, and analyst targets move higher, is monday.com quietly trading at a discount, or is the market already factoring in years of future Work OS and AI driven expansion?

Most Popular Narrative Narrative: 31.2% Undervalued

With monday.com last closing at $161.86 versus a narrative fair value near $235, the prevailing view frames today’s price as a sizeable discount on future potential.

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 this growth story justifies such a hefty future earnings multiple, rising margins, and sustained double digit revenue expansion, all at once? Read the complete narrative to unpack the assumptions powering that gap between today’s price and this ambitious fair value.

Result: Fair Value of $235.20 (UNDERVALUED)

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

However, slowing SMB customer additions and elongating sales cycles could challenge the upmarket growth thesis, testing both valuation assumptions and investor patience.

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

Another Angle on Valuation

While the narrative fair value suggests upside, a simple earnings multiple tells a tougher story. monday.com trades on about 126 times earnings versus 31.9 for the US software sector and 41.4 for peers, far above a fair ratio near 43.4. Could sentiment compress that gap before growth catches up?

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

Build Your Own monday.com Narrative

If this view does not quite fit your take, or you prefer digging into the numbers yourself, you can craft a personalized narrative in 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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