<div id="readability-page-1"><div><p>monday.com (MNDY) just released its third quarter earnings, showing a switch from a loss to a profit and stronger sales compared to last year. The company also shared upbeat revenue guidance for the rest of 2025.</p> <p>See our latest analysis for monday.com.</p> <p>Despite monday.com's leap to profitability and strong revenue guidance, its share price momentum has faded this year, with a year-to-date share price return of -30.51%. However, long-term holders have still seen a three-year total shareholder return of nearly 66%, reflecting its persistent growth story even through recent volatility.</p> <p>If recent earnings surprises have you rethinking where the next breakout could come from, now is the perfect moment to discover fast growing stocks with high insider ownership</p> <p>With shares pulling back this year despite impressive earnings and bullish guidance, the key question is whether monday.com is now undervalued or if the market has already priced in its future growth potential.</p> <h2>Most Popular Narrative: 39.7% Undervalued</h2> <p>Compared to monday.com's last close price, the most popular narrative sets a fair value much higher, pointing to significant upside potential. This perspective hinges on powerful growth levers and platform innovations that could reshape future earnings.</p> <blockquote> <p><em>“Ongoing global shift toward digital transformation, remote/hybrid work, and rising SaaS adoption continues fueling strong demand for cloud-based productivity and collaboration platforms like monday.com, supporting high double-digit revenue growth and future ARR expansion. Rapid integration of generative AI and low-code/no-code capabilities (e.g., Monday Magic, Vibe, Sidekick) enable broader automation and workflow customization. This strengthens platform differentiation and stickiness, which may improve customer retention, ARPU, and net margins as monetization scales.”</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to know what powers monday.com's premium narrative? The story weaves together bold revenue expansion and margin moves that could surprise even savvy investors. The path to this valuation is paved with a mix of disruptive tech launches and strong recurring revenue signals. Which assumptions really tip the scales? See what else drives this ambitious price target.</p> <p><strong>Result: Fair Value of $266.33 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, there are still risks to watch, such as slowing new customer growth and increased competition. These factors could temper even the most optimistic projections.</p> <p>Find out about the key risks to this monday.com narrative.</p> <h2>Another View: Market-Based Multiples Tell a Different Story</h2> <p>Looking through the lens of price-to-earnings, monday.com trades at a hefty 127.2x, far above the US Software industry average of 31.2x and the peer average of 37.5x. The fair ratio sits at 47.1x. This suggests the market has high expectations priced in. Does this signal risk, or could strong future growth close the gap?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/b018843d-ade7-4ca0-a323-86ec8739f1c3/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/b018843d-ade7-4ca0-a323-86ec8739f1c3/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:MNDY PE Ratio as at Nov 2025</figcaption></figure><h2> Build Your Own monday.com Narrative</h2> <p>If you see things differently or want to dive deeper into the numbers, you can craft your own story in just a few minutes. Do it your way.</p> <p>A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding monday.com.</p> <h2>Looking for More Investment Ideas?</h2> <p>Smart investing is all about staying ahead of the curve. Great opportunities are out there right now, waiting for decisive investors. You just need to know where to look.</p> <ul> <li>Tap into strong growth potential by following these 24 AI penny stocks making waves in artificial intelligence and transforming entire industries with their forward-thinking innovations.</li> <li>Benefit from reliable income streams by checking out these 16 dividend stocks with yields &gt; 3% that consistently deliver attractive yields above 3% and reward shareholders even in challenging markets.</li> <li>Position yourself for tomorrow’s financial breakthroughs by tracking these 82 cryptocurrency and blockchain stocks at the forefront of blockchain advancements and new payment technologies.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

MNDY

<p>monday.com (MNDY) reported a switch from a loss to a profit in Q3 and provided strong revenue guidance for 2025. Despite this, its share price has dropped 30.51% year-to-date. Long-term holders have seen a 66% return over three years. Analysts suggest the stock is undervalued with a fair value of $266.33, driven by digital transformation and SaaS adoption. However, risks include slowing customer growth and high competition. The PE ratio is significantly above industry averages, indicating high market expectations.</p>

A Fresh Look at monday.com (MNDY) Valuation Following Strong Profit and Revenue Guidance