MongoDB (MDB) is back in focus after a 5.1% share price move that lined up with upbeat AI sentiment around CES 2026 and a cluster of supportive analyst views on its platform.

The latest move fits into a broader upswing, with a 90 day share price return of 33.38% and a 1 year total shareholder return of 77.21% suggesting momentum has been building rather than fading.

If AI focused databases like MongoDB are on your radar, it could be a good time to broaden your watchlist with high growth tech and AI stocks.

With MongoDB now trading near recent analyst targets and sitting on strong 1 year gains, the key question is whether you are looking at an overextended AI favorite or a stock where the market is still underpricing future growth.

Most Popular Narrative: 1% Undervalued

With MongoDB last closing at US$435.86 versus a most popular narrative fair value of roughly US$440, the valuation gap is narrow but still meaningful enough to examine what is baked into those numbers.

Valuation Changes

• Fair Value Estimate has risen slightly to approximately $440, up from about $428, reflecting modestly higher long term expectations.

• Discount Rate has edged down marginally to roughly 8.91 percent from 8.91 percent previously, implying a slightly lower required return.

• Revenue Growth forecast has increased slightly to about 18.44 percent from 18.36 percent, indicating a small uplift in top line expectations.

• Net Profit Margin assumption has risen meaningfully to roughly 5.11 percent from 3.67 percent, signaling improved profitability expectations.

• Future P/E multiple has fallen significantly to about 286 times from 388 times, suggesting a lower valuation multiple despite higher earnings assumptions.

Want to see what justifies pairing higher margin expectations with a sharply lower future P/E multiple? The narrative leans on specific revenue, profitability and discount rate inputs that paint a very particular path from today’s loss making position to that US$440 fair value.

Result: Fair Value of $440.10 (ABOUT RIGHT)

However, there are still clear pressure points, including rising competition from cloud and open source databases, as well as the risk that AI use cases scale more slowly than expected.

Another Angle On Valuation

The popular narrative pegs MongoDB at roughly fair value around US$440, but the P/S ratio tells a different story. The shares trade on a P/S of 15.3x, compared with a fair ratio of 10.8x, a US IT industry average of 2.2x, and peer average of 14.6x. That premium suggests less room for error if growth or margins do not match expectations, so how comfortable are you paying up at these levels?

Build Your Own MongoDB Narrative

If you see the numbers differently or simply prefer to stress test your own assumptions, you can spin up a fresh narrative in minutes: Do it your way.

A great starting point for your MongoDB research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Ready For Your Next Investing Move?

If MongoDB has sharpened your thinking, do not stop here. Broaden your opportunity set with focused stock ideas that match the kind of edge you want.

• Target potential mispricings by scanning these 877 undervalued stocks based on cash flows that might offer more attractive entry points than well known names.
• Ride the AI wave more intentionally by sifting through these 25 AI penny stocks primed to benefit from data and automation trends.
• Lock in potential income streams by focusing on these 11 dividend stocks with yields > 3% that can support a yield focused portfolio.

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.