Category: 3. Business

(Bloomberg) — Asian stocks rebounded following Monday’s selloff that saw cryptocurrencies lead declines in global risk assets. Japanese government bonds edged higher after a keenly watched auction of 10-year debt drew firm demand.

MSCI Inc.’s gauge of regional equities climbed as much as 0.5% before paring some gains. Tech-heavy markets of South Korea and Taiwan outperformed. US stock futures were steady after the S&P 500 fell 0.5% and the Nasdaq 100 dropped 0.4% on Monday. Bitcoin advanced after fluctuating early in the session. It slumped more than 5% on Monday.

Demand at this year’s final auction of 10-year Japanese bonds was stronger than the 12-month average. The sale had assumed greater importance for traders after increased speculation over an interest-rate hike sparked a yield surge. The yen weakened slightly against the dollar after rising the most in a week on Monday, when Bank of Japan Governor Kazuo Ueda sent the clearest hint yet that his board might raise rates soon.

Japanese government bonds should be watched as yields “have been on a tear” this year on expectations of larger budget deficits and another rate hike by the BOJ, Kristina Hooper, chief market strategist at Man Group, wrote in a LinkedIn post earlier. “This is important because rising JGB yields can help push up the yields of other longer-dated sovereign bonds, adding to borrowing costs when some governments can least afford it.”

Global markets were off to a shaky start in December on Monday as the renewed selloff in cryptocurrencies and hawkish comments from BOJ’s Ueda spurred risk aversion. Focus in the coming days will remain on central bank actions as Federal Reserve policymakers meet Dec. 9-10 and the BOJ decides on rates on Dec. 19.

While the Fed is widely expected to cut rates, swaps now imply about an 80% probability of a BOJ hike at this month’s meeting, with the odds rising to more than 90% for the January gathering. That’s versus just 36% for December as recently as a week ago.

The bid-to-cover ratio for the 10-year sale was 3.59 compared with 2.97 at the previous sale in November, and a 12-month average of 3.20. Japan will auction 30-year bonds on Thursday.

“We are getting to levels in terms of Japanese yields where for Japanese investors it’s becoming interesting to bring money back,” Guy Stear, head of developed markets strategy at Amundi Investment Institute, said on Bloomberg Television. “So I think that this rise in yields will not continue ad-infinitum. I think we are closer to the end of the rise in Japanese yields than we are certainly to the beginning.”

Treasuries steadied on Tuesday after falling across the curve in the previous session, when the 10-year yield jumped seven basis points to around 4.1%. A gauge of the dollar was little changed. Australia’s 10-year yield climbed five basis points.

Elsewhere, silver retreated from a record high, with a key technical indicator showing that a six-day rally through Monday had taken the white metal into overbought territory. Gold also declined while oil edged higher.

“There’s been some stabilization, but this still looks like a positioning-led bounce rather than a shift in broader conviction,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. “Monday’s move flushed out some weak hands, but the market remains cautious.”

In the US, data Monday showed factory activity shrank in November by the most in four months as orders weakened.

Fed officials will get a dated reading on their preferred inflation gauge before next week’s rate decision. The report due Friday is expected to show that inflationary pressures are stable, but sticky. Yet the debate will likely largely center on the job market when policymakers meet for the rate decision.

In addition to Friday’s inflation data, other relevant economic data this week include ADP private employment figures for November and a preliminary reading of consumer confidence in December.

“With the Fed set to carry out another possible rate cut and key governments adopting fiscal stances that are more growth supportive than expected, we think the global macroeconomic environment will remain favorable to investors’ risk-taking,” said Homin Lee, a senior macro strategist at Lombard Odier Singapore.

Corporate News

Fanuc Corp.’s shares climbed as much as 9.4% to the highest since July 2021 after the Japanese factory automation equipment company announced that it will collaborate with Nvidia Corp. to implement physical AI in industrial robots. China Vanke Co., the distressed builder that surprised markets last week when it proposed an unspecified delay in paying a local bond, has now asked holders to wait a year to be made whole, as it faces mounting liquidity pressure amid waning state support. Warner Bros. Discovery Inc. was fielding a second round of bids on Monday, including a mostly cash offer from Netflix Inc., in an auction that could wrap up in the coming days or weeks, according to people familiar with the discussions. Jane Street Group and Citadel Securities reported gains in third-quarter trading revenue, cutting further into Wall Street’s dominance of that business and leaving the two market-making firms on track for record years. After 13 years of running South Korea’s largest cryptocurrency exchange, Song Chi-hyung and Kim Hyoung-nyon have cemented their spots among the world’s wealthiest. China’s DeepSeek unveiled two new versions of an experimental artificial-intelligence model it released weeks ago, adding fresh capabilities the startup said would help with combining reasoning and executing certain actions autonomously. Chinese vaccine makers are caught in a steep downturn, as intensifying competition pushes prices lower and erodes profits, underscoring the far-reaching deflationary pressure across the world’s second-largest economy. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 2:02 p.m. Tokyo time Japan’s Topix was little changed Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng rose 0.1% The Shanghai Composite fell 0.6% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1610 The Japanese yen fell 0.1% to 155.64 per dollar The offshore yuan was little changed at 7.0713 per dollar Cryptocurrencies

Bitcoin rose 0.7% to $87,028.01 Ether rose 0.5% to $2,806.41 Bonds

The yield on 10-year Treasuries was little changed at 4.09% Australia’s 10-year yield advanced five basis points to 4.60% Commodities

West Texas Intermediate crude rose 0.1% to $59.40 a barrel Spot gold fell 0.3% to $4,218.70 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson, Abhishek Vishnoi, Ruth Carson, Masaki Kondo and Haslinda Amin.

©2025 Bloomberg L.P.

Competition between retailers seeking to entice customers with early Black Friday deals led to a slowdown in shop price rises during November, according to the British Retail Consortium (BRC).

The trade association for retailers said prices in shops rose by 0.6% last month compared with November 2024. This was down from a 1% rise in October and below the three-month average of 1%.

Black Friday has become one of the most important trading periods for many retailers, starting off the Christmas shopping season and giving shops an early insight into customers’ appetite for spending.

Originally a US phenomenon based around Thanksgiving at the end of November, it now encompasses a much wider period globally, with many retailers offering discounts from the start of the month.

Helen Dickinson, chief executive of the BRC, said: “Black Friday deals began earlier than normal [this year] as competition between retailers hit fever pitch.”

The BRC said discounting was most prevalent in the electricals, fashion, and health and beauty sectors, as retailers attempted to woo cash-strapped shoppers who continue to cut back on discretionary spending.

Recent surveys measuring consumer confidence showed a drop in November, as households have grown increasingly pessimistic about their spending, the labour market and the outlook for the UK economy.

Official figures from the Office for National Statistics (ONS) also revealed that UK retail sales fell 1.1% in October, a sharper drop than expected and the first decline since May.

However, Dickinson said retailers will be hoping consumer confidence rebounds during the vital winter trading period now that uncertainty around the budget is out of the way.

“They will continue doing everything they can to keep prices down and help customers’ money go further this Christmas,” she said.

The BRC also said food prices fell 0.3% month on month in November, after dropping at their sharpest rate in five years in October, at 0.4% month on month. However, on an annual basis, households are still feeling the pinch in their food bills, with prices rising 3% year on year.

The BRC said inflation “remained stubbornly high” for oils and fats, as well as for meat and fish, as climbing production costs are passed on to customers.

“Retailers will need to keep any price increases as low as possible in the run up to Christmas, in order to entice shoppers to spend,” said Mike Watkins, head of retailer and business insight at market researcher NIQ.

The BRC figures cover the first week of November, making them more up to date than the latest official inflation figures, and will provide some optimism for those hoping for an interest-rate cut before the end of the year.

The rate of consumer price inflation fell for the first time in five months in October to 3.6%, according to the Office for National Statistics, increasing market bets that the Bank of England will cut interest rates from 4% to 3.75% at its next rate-setting meeting on 16 December.

This is an audio transcript of the FT News Briefing podcast episode: ‘Swiss prosecutors file charges against Credit Suisse and UBS’

Sonja Hutson
Good morning from the Financial Times. Today is Tuesday, December 2nd, and this is your FT News Briefing.

UK pension funds are worried about an AI bubble, and the US and the UK are getting close to a truce in the battle over pharmaceuticals. Plus Credit Suisse and UBS are facing criminal charges from the tuna bond scandal.

I’m Sonja Hutson, and here’s the news you need to start your day.

[MUSIC PLAYING]

UK pension funds are cutting back their exposure to US equities. They’re concerned about an AI bubble, plus the fact that the market has become more concentrated in a small number of tech stocks. Funds that manage more than £200bn in assets told the FT they’ve been shifting to other geographical regions or adding protection against a potential market dip.

The UK’s defined contribution pension sector, where employees build individual retirement savings, is especially sensitive to potential stock market swings. Savers that are 30 years from retirement typically have up to 80 per cent of their assets in global equities, most of them dominated by US Big Tech stocks.

[MUSIC PLAYING]

Swiss prosecutors filed criminal charges against Credit Suisse and its owner UBS yesterday. They’re connected to the Mozambique tuna bond scandal. Prosecutors alleged that the bank failed to prevent a suspicious $7mn payment because of, quote, organisational shortcomings. UBS took over Credit Suisse several years after the scandal and the charges raised questions about whether criminal liability gets transferred during a takeover.

Here to talk more about this is the FT’s Mercedes Ruehl. Hi, Mercedes.

Mercedes Ruehl
Hi.

Sonja Hutson
All right, lots to unpack here. Can you first explain what the tuna bond scandal is?

Mercedes Ruehl
So the tuna bond scandal dates back to 2013 when Mozambique, which is one of the poorest countries in the world, borrowed around $2bn to fund maritime security projects and a state tuna fishing fleet.

The problem was that much of this money was actually misused. Bankers, intermediaries and government officials were accused of taking bribes and kickbacks, and the country was ultimately left with like pretty crippling debts and a collapsed development project.

Sonja Hutson
Mercedes, what role do Swiss prosecutors say that Credit Suisse as a company played in this scandal?

Mercedes Ruehl
So Swiss prosecutors have filed charges against Credit Suisse — by extension UBS, which took Credit Suisse over in 2023 — for what they describe as organisational deficiencies. The $7mn payment in this case is one of the payments that flowed through the $2bn borrowing deal Mozambique took out in 2013.

So prosecutors say Credit Suisse failed to implement adequate internal safeguards, basically. In particular, when this suspicious $7mn payment arrived in 2016, the bank through a compliance officer did not file suspicious activity report as required. In the eyes of prosecutors, this qualifies as a failure to prevent money laundering, not just an isolated but systemic shortcomings, and thus Credit Suisse, and now it’s successor UBS, are being charged as corporate entities for the failure to stop illicit flows.

UBS said in its statement that it rejects all of these conclusions by the attorney-general’s office, and they’re going to vigorously defend their position.

Sonja Hutson
So I mentioned earlier that this could set a legal precedent. Tell me more about that.

Mercedes Ruehl
This could be an interesting test case for criminal liability after a merger. A lawyer I spoke to said it might help settle whether a company’s criminal liability survives a merger in Switzerland. So UBS bought Credit Suisse in 2023 and prosecutors are effectively arguing UBS inherits the old bank’s exposure and Swiss courts haven’t actually definitively answered that question before. So this is why it could set an important precedent.

Sonja Hutson
What do you think this case will ultimately mean for UBS and its business?

Mercedes Ruehl
So for UBS, this is kind of another uncomfortable legacy issue from rescuing Credit Suisse. The bank has already been working through quite a long list of old legal cases, from mortgage security settlements in the US to misconduct investigations linked to Credit Suisse’s private banking business.

And this case shows that there are still a lot of unresolved issues from the past, and even though UBS agreed a settlement with Mozambique over Credit Suisse’s involvement in the scandal, that apparently hasn’t drawn a line under this dispute. All of this is happening at a time when UBS is also facing broader regulatory pressure in Switzerland.

So these include ongoing discussions around capital requirements. So while UBS is very profitable, its share price is doing OK, it was only slightly down on the day. These legacy cases aren’t helpful.

Sonja Hutson
Mercedes Ruehl covers Switzerland for the FT. Thanks, Mercedes.

Mercedes Ruehl
You’re welcome.

[MUSIC PLAYING]

Sonja Hutson
Richard Hughes, the chair of the UK Office for Budget Responsibility, resigned yesterday. This comes after the UK fiscal watchdog accidentally leaked its analysis of chancellor Rachel Reeves’ Budget before she delivered it last week. That caused sharp movements in bond markets.

Now, this isn’t an isolated incident. An OBR report out yesterday said that the error that led to the leak was also to blame for early access to the Spring Statement in March. It found that the watchdog routinely uploaded its documents before publication time, and the OBR had wrongly assumed that it had configured its website to prevent early access.

[MUSIC PLAYING]

The UK has been in a months-long battle with the pharmaceutical industry and the Trump administration over the amount the NHS is allowed to spend on medicine. The dispute has led to threats by pharmaceutical companies to pull investments in the UK. The Trump administration has said it would impose steep tariffs on drug imports.

Now, it seems like they’ve reached a deal, and I’m joined by the FT’s Chris Smyth to discuss this. Hi, Chris.

Chris Smyth
Hi.

Sonja Hutson
So what has the UK agreed to as part of this deal?

Chris Smyth
Well, effectively the UK has agreed to pay more for medicines. They have agreed a change to a very complicated NHS value for money rules, which effectively means they’re willing to pay 25 per cent more for a new branded medicine.

So this is a big deal. It follows years of complaints from industry about the low prices paid by Britain compared to other countries, which Britain had largely been able to ignore previously because other companies ultimately wanted to sell to Britain and felt they had no choice but to accept the price on offer. But that has changed, of course, with the election of Donald Trump, who has made no secret of his dislike of freeloading Europeans, as he called them, and has threatened all kinds of things if companies continue to sell at lower prices and that has concentrated minds and led to this agreement.

Sonja Hutson
And what does the UK get in return here?

Chris Smyth
Well, it gets two things. The most obvious and immediate thing is it gets an exemption from the 100 per cent tariffs on pharmaceutical imports, which Donald Trump had threatened to impose. So Britain will now be exempt from that. And I guess more broadly what it gets is a sigh of relief from the pharmaceutical industry, which had been pausing, cancelling, reviewing all kinds of investments in Britain and will now have a little bit more confidence about in investing here. And the government will tout that as a big win for the economy and try ultimately to say it will benefit, you know, British patients as well because they will get access to these new medicines.

Sonja Hutson
Chris, how much is this gonna cost the UK?

Chris Smyth
Well that is a subject of hot debate in government. But sources tell me that ultimately this will cost about £3bn a year. Now that’s not all an immediate cost. It will build up to that over time. Exactly how long I think it’s gonna be a matter for debate, but somewhere between three and 10 years.

But ultimately there will be a difficulty here because there isn’t really clarity over who is ultimately going to fund this. There is no increase immediately for the NHS budget to pay for this. But you would imagine when it comes to future negotiations, particularly when we see Rachel Reeves, the chancellor, last week likes using the NHS as a prop. After budgets, there will be a lot of pressure for her to give the NHS even more money to and effectively fund these higher medicines costs.

Sonja Hutson
What impact do you think this deal will ultimately have on the UK drug industry?

Chris Smyth
Well, I think it is fair to say that without this deal, there were some pretty dire warnings coming out from the industry about investment in the UK. Their willingness to work here and support a government strategy, which puts a lot of weight on the life sciences sector as one of the key drivers of its industrial strategy. So I think the fact that the government has been willing to move on this is seen as a big win in the industry and it will give some companies confidence to invest.

But I think there’s a lot more to do to convince them that Britain really is a place that wants to support that industry. But of course if they do that, that comes at a price and that is something that many patients and Labour MPs particularly will not be terribly comfortable with the NHS paying.

Sonja Hutson
Chris Smyth is the FT’s public policy editor. Thanks, Chris.

Chris Smyth
Thank you for having me.

[MUSIC PLAYING]

Sonja Hutson
You can read more on all these stories for free when you click the links in our show notes. This has been your daily FT News Briefing. Check back tomorrow for the latest business news.

(Bloomberg) — Asian stocks staged a rebound on Tuesday following a selloff that saw cryptocurrencies lead declines in global risk assets. A keenly watched auction of 10-year Japanese government bonds drew solid demand.

A gauge of regional equities rose as much as 0.5% before paring some gains. Tech-heavy markets of South Korea and Taiwan outperformed. Futures contracts for US stock indexes edged lower after the S&P 500 fell 0.5% and the Nasdaq 100 dropped 0.4% on Monday. Bitcoin fluctuated after losing more than 5% in the previous session.

Demand at this year’s final auction of 10-year Japanese bonds was stronger than the 12-month average. The sale had assumed greater importance for traders after increased speculation over an interest-rate hike sparked a yield surge. The yen weakened slightly against the dollar after rising the most in a week on Monday, when Bank of Japan Governor Kazuo Ueda sent the clearest hint yet that his board might raise rates soon.

Japanese government bonds should be watched as yields “have been on a tear” this year on expectations of larger budget deficits and another rate hike by the BOJ, Kristina Hooper, chief market strategist at Man Group, wrote in a LinkedIn post earlier. “This is important because rising JGB yields can help push up the yields of other longer-dated sovereign bonds, adding to borrowing costs when some governments can least afford it.”

Global markets were off to a shaky start in December on Monday as the renewed selloff in cryptocurrencies and hawkish comments from BOJ’s Ueda spurred risk aversion. The focus in the coming days will remain on central bank actions as Federal Reserve policymakers meet Dec. 9-10 and the BOJ decides on rates on Dec. 19.

The bid-to-cover ratio was 3.59 compared with 2.97 at the previous sale in November, and a 12-month average of 3.20. In another sign of strong investor demand, the tail, or gap between average and lowest-accepted prices, was 0.04, compared with 0.13 last month.

Swaps now imply about an 80% probability of a BOJ hike this month, with the odds rising to more than 90% for January. That compares with just 36% for December as recently as a week ago.

Treasuries steadied on Tuesday after falling across the curve in the previous session, when the 10-year yield jumped seven basis points to around 4.1%. A gauge of the dollar was little changed. Australia’s 10-year yield climbed six basis points.

Elsewhere, silver retreated from a record high, with a key technical indicator showing that a six-day rally through Monday had taken the white metal into overbought territory. Gold also declined while oil edged higher.

“There’s been some stabilization, but this still looks like a positioning-led bounce rather than a shift in broader conviction,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. “Monday’s move flushed out some weak hands, but the market remains cautious.”

US Economy

In the US, data Monday showed factory activity shrank in November by the most in four months as orders weakened.

Fed officials will get a dated reading on their preferred inflation gauge before next week’s rate decision. The report due Friday is expected to show that inflationary pressures are stable, but sticky. Yet the debate will likely largely center on the job market when policymakers meet for the rate decision.

Still, key data like the jobs report won’t arrive until after the December rate decision, which “drastically dilutes this week’s ability to spring any material surprises in as far as rate cut expectations are concerned,” noted Fawad Razaqzada at Forex.com.

In addition to Friday’s inflation data, other relevant economic data this week include ADP private employment figures for November and a preliminary reading of consumer confidence in December.

“With the Fed set to carry out another possible rate cut and key governments adopting fiscal stances that are more growth supportive than expected, we think the global macroeconomic environment will remain favorable to investors’ risk-taking,” said Homin Lee, a senior macro strategist at Lombard Odier Singapore.

Corporate News

Fanuc Corp.’s shares climbed as much as 9.4% to the highest since July 2021 after the Japanese factory automation equipment company announced that it will collaborate with Nvidia Corp. to implement physical AI in industrial robots. China Vanke Co., the distressed builder that surprised markets last week when it proposed an unspecified delay in paying a local bond, has now asked holders to wait a year to be made whole, as it faces mounting liquidity pressure amid waning state support. Warner Bros. Discovery Inc. was fielding a second round of bids on Monday, including a mostly cash offer from Netflix Inc., in an auction that could wrap up in the coming days or weeks, according to people familiar with the discussions. Jane Street Group and Citadel Securities reported gains in third-quarter trading revenue, cutting further into Wall Street’s dominance of that business and leaving the two market-making firms on track for record years. After 13 years of running South Korea’s largest cryptocurrency exchange, Song Chi-hyung and Kim Hyoung-nyon have cemented their spots among the world’s wealthiest. China’s DeepSeek unveiled two new versions of an experimental artificial-intelligence model it released weeks ago, adding fresh capabilities the startup said would help with combining reasoning and executing certain actions autonomously. Chinese vaccine makers are caught in a steep downturn, as intensifying competition pushes prices lower and erodes profits, underscoring the far-reaching deflationary pressure across the world’s second-largest economy. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.1% as of 12:42 p.m. Tokyo time Japan’s Topix rose 0.2% Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng was little changed The Shanghai Composite fell 0.5% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1612 The Japanese yen was little changed at 155.61 per dollar The offshore yuan was little changed at 7.0736 per dollar Cryptocurrencies

Bitcoin rose 0.2% to $86,612.2 Ether rose 0.3% to $2,801.11 Bonds

The yield on 10-year Treasuries was little changed at 4.09% Australia’s 10-year yield advanced six basis points to 4.61% Commodities

West Texas Intermediate crude was little changed Spot gold fell 0.2% to $4,223.51 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson, Abhishek Vishnoi, Ruth Carson and Masaki Kondo.

©2025 Bloomberg L.P.

• Ever wondered if monday.com is actually a hidden bargain or just riding a wave of hype? Let’s break down what is really driving the stock’s value so you can draw your own conclusion.

• After a short-term rebound of 3.2% in the last week, monday.com shares are still down 27.0% over the past month and a significant 35.1% year-to-date. This performance hints at shifting market perceptions and raises fresh questions around its long-term prospects.

• Recent headlines have highlighted increased adoption of monday.com’s work management platform among enterprise clients, along with partnerships that are expanding its international reach. At the same time, investors are considering growing competition in the software sector and the implications this may have for future growth.

• On valuation, monday.com scores 3 out of 6 on our valuation checks. This mixed showing leaves plenty to discuss. Next, we will run through the usual ways to spot value in a stock, but stick around for a smarter approach revealed later in the article.

Find out why monday.com’s -45.4% return over the last year is lagging behind its peers.

The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and then discounting them back to today’s value. This approach helps investors gauge whether a stock is trading at an attractive price compared to its anticipated ability to generate cash in the future.

For monday.com, the latest reported Free Cash Flow stands at $331 million. Analysts foresee robust growth, with projected Free Cash Flow rising to about $749 million by 2029. Looking even further, extrapolated forecasts suggest Free Cash Flow could surpass $1.2 billion by 2035. These forecasts start with analyst estimates for the next five years, while longer-term projections use reasonable growth assumptions tailored by Simply Wall St.

According to the DCF analysis, the estimated intrinsic value of monday.com’s shares is $211.44. This figure implies the stock is trading at a 29.1% discount compared to what the company is truly worth. This may signal that investors are underpricing its long-term potential based on cash flows today.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests monday.com is undervalued by 29.1%. Track this in your watchlist or portfolio, or discover 923 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for monday.com.

The Price-to-Earnings (PE) ratio is a popular way to value profitable companies because it directly relates a company’s share price to its earnings, allowing investors to see how much they are paying for each dollar of profit. For established, consistently profitable businesses like monday.com, the PE ratio helps put the current share price in context with not only recent performance but also anticipated growth and potential risks.

Growth expectations and perceived risk play a critical role in what counts as a “normal” or “fair” PE ratio. Companies expected to grow faster or that face lower risks typically command higher PE ratios, as investors are willing to pay more for each dollar of current earnings to benefit from future gains. Conversely, riskier or slower-growing companies tend to have lower PE ratios.

Currently, monday.com’s PE ratio stands at 118.8x, which is much higher than the industry average of 31.8x and its peer average of 36.8x. These benchmarks provide a useful starting point for comparison, but they do not account for company-specific strengths or weaknesses.

This is where Simply Wall St’s proprietary “Fair Ratio” comes in. The Fair Ratio, calculated at 43.6x for monday.com, considers the company’s earnings growth potential, competitive landscape, profit margins, size, and business risks. This holistic approach delivers a more nuanced and realistic estimate of what monday.com’s PE ratio should be, rather than just relying on broader industry or peer averages.

By comparing monday.com’s actual PE of 118.8x to the Fair Ratio of 43.6x, the stock appears to be trading at a premium far above what would be justified by its fundamentals alone, according to this model.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are personalized stories investors create to connect their perspective on a company, such as expected revenue growth, future profit margins, and competitive advantages, to a specific financial forecast and resulting fair value. This unique approach allows you to capture your outlook and assumptions, linking the company’s story to a dynamic estimate of fair value, rather than relying solely on static ratios or past performance.

On Simply Wall St’s Community page, millions of investors use Narratives to break down complex data into accessible, actionable insights. Narratives make it easy to see how fair value compares with the current market price, guiding you on whether now might be a good time to buy or sell. Importantly, Narratives update automatically as new news or company results emerge, keeping insights fresh and relevant.

For example, with monday.com, some investors believe aggressive upmarket expansion justifies a bullish fair value as high as $450 per share, while others focus on competitive risks and more cautious growth, yielding fair values closer to $205. Narratives empower you to map your own story to the latest numbers and then act on it confidently.

Do you think there’s more to the story for monday.com? Head over to our Community to see what others are saying!

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

The U.S. Department of Commerce said on Monday the government will inject up to $150 million into the company but did not disclose the size of the stake.

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Within the lithography machine, the most difficult part to make is the laser.

XLight has proposed using technology derived from particle accelerators to create one that would use far less electricity than current lasers, and is working with U.S. national labs to develop a prototype that could be connected to machines made by ASML or others.

“For far too long, America ceded the frontier of advanced lithography to others. Under President Trump, those days are over,” Secretary of Commerce Howard Lutnick said in a statement.

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