monday.com (MNDY) Draws Fresh Analyst Support, Is The Stock Still Undervalued?

Fresh analyst attention on monday.com (MNDY) has been triggered by a mix of upbeat earnings estimate revisions, a Zacks Rank #1 rating, and recent efficiency moves that include workforce cuts and a substantial share buyback.

At around US$97.33, monday.com’s share price has logged a 13.52% 90 day share price return and a 3.76% 30 day share price return. However, long term total shareholder returns are still down sharply, including a 46.65% decline over one year. This suggests that recent momentum is rebuilding from a much weaker multi year base as investors reassess the impact of efficiency moves and profitability on the valuation of the stock.

Spot fresh momentum in monday.com, then compare it with other software stocks that combine strong fundamentals and potential valuation support in our hand picked 52 high quality undervalued stocks.

The recent rebound in monday.com, with profitability now in place and the stock trading near roughly fair P/E territory, leaves a simple tension: Is most of the easy upside already used up, or is the reset only getting started?

Most Popular Narrative: 10% Undervalued

The most followed narrative on monday.com values the stock at $108.13 versus the latest close at $97.33. That gap reflects a view that investors are not fully pricing in the cash flow potential behind the current AI work platform push.

Rapid integration of generative AI and low-code/no-code capabilities (e.g., Monday Magic, Vibe, Sidekick) enables broader automation and workflow customization, strengthening platform differentiation and stickiness and likely improving customer retention, ARPU, and net margins as monetization scales.

Read the complete narrative. Read the complete narrative.

Want to see what is baked into that valuation gap? The narrative leans heavily on assumptions about faster earnings expansion, evolving margin expectations, and a richer future earnings multiple tied to monday.com's AI work platform positioning.

Result: Fair Value of $108.13 (UNDERVALUED)

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

However, monday.com still faces meaningful risks, including heavy reliance on performance marketing and intense competition in workflow and AI tools that could pressure growth and margins.

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

Another View On monday.com Using Market Multiples

The analyst narrative suggests monday.com trades around a fair P/E level for its earnings path, yet the multiples picture is more mixed. The stock changes hands at a P/E of 33.9x, which is higher than the US Software industry at 31.4x, but below the peer average of 40.2x and close to an estimated fair ratio of 34.4x. Taken together, these figures point to limited room for error. The key question is whether you see more downside risk if sentiment cools, or more upside if earnings deliver against these expectations.

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

Next Steps

With monday.com attracting both optimism and concern, it makes sense to look at the full picture yourself and move quickly if you feel conviction building. To weigh the upside against the downside in detail, start with 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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