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monday.com (MNDY) just released its latest earnings, showcasing revenue growth of 27% and outpacing expectations on important financial measures. Management sounded upbeat about scaling efficiently and maintaining momentum.

See our latest analysis for monday.com.

Despite these upbeat results, momentum has been hard to hold onto. monday.com’s share price delivered a 1-day gain of 4.7%, but is still down 17.9% year-to-date. Over the past year, the total shareholder return sits at a steep -41.5%, reflecting a sharp pullback from recent highs. Long-term holders are still up nearly 100% over three years. The stock’s recent moves signal investors are weighing short-term uncertainty against the company’s longer-term growth story.

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With shares trading well below analyst targets despite robust financials and upbeat management commentary, investors are left to wonder: is monday.com undervalued at current levels, or is the market already factoring in future growth?

monday.com’s fair value, according to the most widely followed narrative, lands significantly above its latest close. This outlook sees major catalysts on the horizon, setting up an intriguing argument for upside if the story unfolds as projected.

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.

Read the complete narrative.

Want to unravel what powers this lofty target? There is a bold recipe driving these numbers: think rapid expansion and a turnaround in profit margins. The secret is in how recurring revenue and margin improvement factor into the forecast. What assumptions does the narrative make about the speed and scale of future growth? See the key numbers and logic for yourself.

Result: Fair Value of $266.33 (UNDERVALUED)

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

However, accelerating competition and slower customer additions could challenge monday.com’s ability to maintain its projected high growth and margin improvements in the future.

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

Looking at price-to-sales, monday.com trades at 8.9x, which is noticeably steeper than the US Software sector average of 4.8x and its peer group at 8.5x. While the company’s growth prospects could justify a premium, the current multiple stands below the fair ratio of 11.9x. This may imply room for the stock to re-rate if market sentiment turns more positive. However, these multiples could also signal vulnerability if growth expectations fall short.

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

If you want to take a different angle or dig deeper into the numbers yourself, building your own story is quick and straightforward, often taking just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding monday.com.

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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.

Companies discussed in this article include MNDY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Somnigroup International (SGI) has been attracting attention as its shares climbed 3% today, continuing strong gains from the past month. Investors are watching closely as ongoing shifts occur in the consumer durables space.

See our latest analysis for Somnigroup International.

After a year of strong momentum, Somnigroup International’s 1-year total shareholder return now stands at 69.2%, with a share price last closing at $91.25. That is on top of an impressive 308% total return over the past five years. With recent buying pressure and upbeat sentiment in consumer durables, it appears that investors are increasingly pricing in growth potential and improved fundamentals for SGI.

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Yet with shares near record highs and analyst targets not far ahead, the big question for investors is whether Somnigroup remains undervalued or if the stock’s recent jump simply reflects confidence in future growth prospects.

Somnigroup International’s most followed narrative places fair value at $88.38 per share, just below the recent closing price of $91.25. This narrow gap places the spotlight on ambitious long-term growth assumptions that drive the valuation debate.

The integration of Mattress Firm is already generating meaningful sales and cost synergies, with $100 million in annual net cost synergies projected and sales synergies ahead of schedule. These operational improvements are set to expand EBITDA and enhance net margins moving into 2026 and beyond.

Read the complete narrative.

Curious what powers this bullish price target? One component of the narrative combines a bold leap in profit margins with aggressive revenue expansion and a future valuation multiple that most companies in the sector can only dream about. Want to see what all these fast-moving financial assumptions add up to? The answers might surprise you.

Result: Fair Value of $88.38 (OVERVALUED)

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

However, persistent input cost pressures and shifting consumer preferences could challenge Somnigroup International’s projected growth and margin improvement. This may keep the outlook uncertain.

Find out about the key risks to this Somnigroup International narrative.

If you think there is more to the story, or prefer drawing your own conclusions from the data, it only takes a few minutes to create your own perspective with Do it your way

A great starting point for your Somnigroup International research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

Your next game-changing investment could be waiting just beyond Somnigroup. Don’t let a promising trend pass you by. There is a whole world of winning stocks to choose from, primed for bold investors ready to take action.

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.

Companies discussed in this article include SGI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com