Is monday.com Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for monday.com Ltd. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its high valuation ratios, including a P/E ratio of 294, a Price to Book Value of 14.08, and an EV to Sales ratio of 13.44. In comparison, Paylocity Holding Corp., which is considered fairly valued, has a P/E ratio of 40.42, while CCC Intelligent Solutions Holdings, Inc. is rated attractive with a P/E of 222.22.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -22.88% compared to the index's gain of 13.30%. This underperformance, along with the very expensive valuation metrics, reinforces the conclusion that monday.com Ltd. is overvalued in the current market environment.