Key Takeaways:
- Growing Ecosystem: Monday.com serves over 250,000 customers, evolving from a simple task tracker into a full-scale platform for CRM, IT service, and AI.
- Price Projection: Based on current momentum, the stock could hit $221 by December 2027.
- Potential Gains: This target implies a total return of 51% from the current price of $145.78.
- Annual Return: Investors could see roughly 23% growth per year over the next 24 months.
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Monday.com (MNDY) has come a long way from its roots as a colorful project management tool. Today, it is a sophisticated “Work OS” that helps businesses build their own software applications and automate complex workflows.
In the third quarter of 2025, the company reported $317 million in revenue—a 26% increase from the previous year. Even more impressive was its record operating profit of $47.5 million.
Despite these strong numbers, MNDY stock is still down 38% in 2025. This gap suggests that while the company is performing better than ever, the market hasn’t fully “re-priced” its new reality as a profitable enterprise player.
See analysts’ full growth forecasts and estimates for MNDY stock (It’s free) >>>
What the Model Says for MNDY Stock
We looked at Monday.com’s future through the lens of its “multi-product” strategy. By shifting from one product to four (Work Management, CRM, Service, and Dev), the company is becoming much stickier for large businesses.
Using a forecast of 23% annual revenue growth and 16% operating margins, our model projects the stock will rise to $221 within two years. This assumes a 30x Price-to-Earnings (P/E) multiple.
While that might sound high compared to a traditional bank or oil company, it is actually quite conservative for a high-growth software company, especially considering monday.com’s historical average is much higher.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for MNDY stock:
1. Revenue Growth: 23%
Monday.com is successfully “moving upmarket.” This means they are signing more large contracts with big corporations rather than just small startups.
- Big Deals: The company recently closed several million-dollar deals. One European logistics firm alone bought 5,000 “seats” across three different products.
- The “Land and Expand” Strategy: Most customers start with a $50,000 contract. Over three to four years, as they add more team members and products, those contracts often grow into seven-figure accounts.
- New Product Hits: Their CRM product reached $100 million in annual recurring revenue (ARR) in less than two years. Their newer “Service” product is growing even faster, with average deal sizes twice as large as their original software.
2. Operating margins: 16%
For a long time, SaaS companies were known for burning cash to grow. Monday.com has flipped the switch to profitability.
- High Efficiency: Their gross margin is 90%, which is top-tier for the industry. This means it costs them very little to provide the software to each new user.
- Smart Spending: They are spending less on basic Google ads and more on direct sales and social media. This is bringing in higher-quality leads that stay with the platform longer.
- The AI Factor: Monday.com recently launched “Agent Factory,” which lets users build AI agents to handle repetitive tasks. This isn’t just a cool feature—it’s a new revenue stream based on how much the AI is actually used.
3. Exit P/E Multiple: 30x
The market currently values the stock at 32x its expected earnings. We chose 30x for our exit multiple to stay on the safe side.
- Room to Grow: Currently, only 6% of customers use more than one product. This is a massive opportunity. As more of their 250,000 customers sign up for the CRM or Service tools, the company’s value should naturally rise.
- Retention is Key: The Net Dollar Retention (NDR) is 111%. Simply put, this means that even if the company didn’t sign a single new customer, their revenue would still grow by 11% because existing customers are spending more.
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What Happens If Things Go Better or Worse?
Software growth can be volatile. Here is how MNDY stock might look in different scenarios through 2027:
- Low Case: If revenue growth slows to 18% and AI adoption is sluggish, the stock still offers a 13% annual return.
- Mid Case: With 23% growth and steady margins, we expect a 21% annual return.
- High Case: If the “multi-product” strategy takes off and most customers start using 2-3 products, returns could hit 30% annually.
See what analysts think about MNDY stock right now (Free with TIKR) >>>
Monday.com has moved past the “growth at all costs” phase and is now a high-margin, profitable machine.
With a massive customer base that has barely begun to explore their new products, the path to $220 looks very achievable.
How Much Upside Does Monday.com Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
