monday.com (MNDY) Could Be 26% Undervalued On Raised 2026 Guidance

monday.com (MNDY) is back in focus after a 5.3% share price move on 1 July 2026, a sharp swing for a stock that is still down 44.4% year to date.

See our latest analysis for monday.com.

Recent news around monday.com’s raised 2026 guidance, progress on AI monetization and the large share repurchase has arrived during a period where short term share price momentum has picked up, while longer term total shareholder returns remain sharply negative.

If you are looking beyond monday.com for other fast moving software and AI names, this could be a useful moment to review 29 AI small caps.

With monday.com now trading well below some published valuation estimates, but coming off a strong quarter and a large buyback, investors face a key question: is this genuine mispricing, or is the market already baking in future growth?

Most Popular Narrative: 26.2% Undervalued

With monday.com closing at $79.77 against a most followed fair value estimate of $108.13, the current price sits well below that narrative benchmark.

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.

Want to see what is behind that fair value gap? Revenue build, margin reset, and a future earnings multiple that assumes a very specific 2029 destination.

At the core of this narrative is a detailed pathway that links monday.com’s current profitability, expected revenue growth profile and a higher future P/E multiple to that $108.13 fair value. It uses a 10.84% discount rate and explicit assumptions about share count and margins over time.

Result: Fair Value of $108.13 (UNDERVALUED)

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

However, the monday.com narrative also leans on assumptions that could be challenged if performance marketing delivers weaker customer additions or if heavier spending keeps margins under pressure.

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

Another View: What monday.com’s P/E Is Signaling

While the most followed monday.com narrative leans on detailed long term forecasts, the current share price of $79.77 also implies something quite different when looking at simple earnings ratios. MNDY trades on a P/E of 29.3x, above the US Software industry at 27.7x and above a fair ratio of 19.1x.

That gap suggests the market is already paying a premium relative to both peers and where the fair ratio indicates the P/E could move toward. This may limit upside if expectations slip or create room for repricing if earnings outpace cautious forecasts. Which story do you think the market is really telling?

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

Next Steps

If the mix of optimism and concern around monday.com feels finely balanced, take a closer look at the data and form your own judgment, then weigh the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond monday.com?

If monday.com has sharpened your focus, do not stop here. Broaden your watchlist with other potential opportunities picked out by the Simply Wall Street Screener.

• Target potential mispricing by scanning for companies that combine solid fundamentals with room for a re rating using the 44 high quality undervalued stocks.
• Strengthen your income stream by reviewing companies with sizeable yields and resilient payout histories through the 7 dividend fortresses.
• Stay on the front foot by tracking financially robust businesses that score well on balance sheet strength via the solid balance sheet and fundamentals stocks screener (47 results).

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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