Analysts Highlight AI Growth At Monday.com (MNDY) A Fresh Look At Whether The Shares Appear Undervalued

Analyst attention and AI focus put monday.com in the spotlight

Recent analyst commentary on monday.com (MNDY), centered on its AI monetization plans and expanding product lineup, has pushed the stock back onto many investors’ watchlists as they reassess the business.

See our latest analysis for monday.com.

Despite renewed interest, monday.com’s 1 year total shareholder return of 34.05% and 90 day share price return of a 21.33% decline suggest momentum has cooled recently, even as fresh AI focused commentary keeps longer term expectations in view.

If AI centered software stories like monday.com interest you, this could be a moment to look across other tech names using our screener for high growth tech and AI stocks.

With shares down 21.33% over 90 days but still up on a 3 year basis, and trading at a 27.26% intrinsic discount, the real question is whether this reset signals a fresh opportunity or if markets already reflect future growth.

Most Popular Narrative: 36.2% Undervalued

With monday.com’s fair value estimate sitting above the last close of US$149.95, the most followed narrative sees meaningful upside built into its cash generation 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 what earnings, margin, and revenue runway has to look like for that valuation to stack up? The narrative leans on compounding growth assumptions, rising profitability, and a rich future earnings multiple. Want to see how those pieces fit together and what discount rate ties it all back to today’s share price?

Result: Fair Value of $235.20 (UNDERVALUED)

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

However, stretched P/E assumptions, combined with heavier R&D and sales spend and softer small business additions, could all chip away at the upbeat AI growth story investors are watching.

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

Another View: High P/E Puts Pressure On The Story

That 27.3% discount to fair value and 36.2% discount to the narrative fair value of US$235.20 paint monday.com as undervalued, but the current P/E of 118.8x tells a different story. It is well above the US Software industry at 32.7x, peers at 40.3x, and the fair ratio of 49.6x, which could indicate that expectations are already loaded into the price. If sentiment or growth assumptions change, how much room is there for error?

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

Build Your Own monday.com Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a personalized monday.com view in minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding monday.com.

Looking for more investment ideas?

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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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