Monday.com Shares at $87.96, 77.5% Below Estimated Fair Value
Monday.com closed at $87.96, trading far below its $390.87 fair value estimate despite a strong growth rating.
Key points
- Monday.com shares closed at $87.96, which is 77.5% below the estimated fair value of $390.87.
- The company holds a 72/100 GuruFocus score, driven by a 9/10 growth rating but a 4/10 profitability score.
- Insiders sold a net $0.6 million of shares over the past year, while four of five gurus increased their stakes.
Monday.com Ltd (MNDY) closed trading on September 21, 2026, at $87.96, a 3.3% gain for the session. This price point sits well within the stock's volatile 52-week range, which spans from a low of $57.50 to a high of $220.80. According to GuruFocus, the current share price is 77.5% below the company's estimated fair value of $390.87.
The valuation gap reflects a significant discount to historical metrics. The trailing twelve-month price-to-earnings ratio stands at 37.5x, a sharp drop from the five-year median of 285.2x. This divergence suggests the market has priced in a substantial de-rating of the company’s earnings power relative to its past performance.
Financial Health vs Profitability Metrics
GuruFocus assigns Monday.com a composite score of 72 out of 100, indicating above-average performance among software peers. The company’s financial strength is rated 8/10, reflecting a solid balance sheet. However, profitability lags behind, receiving only a 4/10 rating, which points to challenges in converting revenue into net income.
Growth remains the company’s strongest pillar, earning a 9/10 rating that signals robust expansion potential. In contrast, the valuation component scores just 2/10, highlighting a historical premium to growth that has not been fully realized in recent quarters. Momentum is neutral at 5/10, suggesting steady but unexceptional recent performance.
Insider and Guru Activity Signals
Insider trading data reveals a net sell of $0.6 million over the past 12 months, with no reported insider purchases. This consistent selling activity suggests caution among company executives regarding short-term prospects. Meanwhile, five prominent gurus hold positions in the stock, with four increasing their stakes recently, though two have trimmed holdings.
Valuation Context and Risk Factors
The forward price-to-earnings ratio of 13.1x offers a lower entry multiple compared to the trailing figure. GuruFocus notes that while the stock appears undervalued, it carries a risk of being a value trap. Investors must weigh the significant discount against the company’s recent volatility and mixed signals from insider selling.
