• Investors may be asking whether MongoDB stock is still priced attractively after its performance in recent years, or if much of the easier upside has already been realized.
• The share price last closed at US$266.68, with returns of 3.3% over 7 days, 5.4% over 30 days, a year-to-date decline of 33.3%, and 54.8% over 1 year.
• Recent market attention on MongoDB has focused on its role in database and developer tooling, with investors reacting to product updates and partnerships that keep it in the discussion for modern data infrastructure. At the same time, debate has increased around how to balance growth expectations with the risks associated with a highly valued software stock.
• MongoDB currently has a valuation score of 1 out of 6. This sets up a closer look at how different valuation methods compare for this stock and why a broader framework later in the article may help you assess whether the market price appears reasonable.

MongoDB scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: MongoDB Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a stock might be worth by projecting the company’s future cash flows and discounting them back to today’s value. It is essentially asking what those future dollars are worth in your pocket right now.

For MongoDB, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is about $488.9 million. Analyst estimates and extrapolated figures suggest Free Cash Flow rising to around $1.3b by 2031, with a series of annual projections between 2026 and 2035 that are discounted back to reflect the time value of money and risk. All figures are in $ and already adjusted for discounting within the model.

Putting those cash flows together, the DCF output points to an estimated intrinsic value of about $295.70 per share. Compared with the recent share price of $266.68, this implies the stock is 9.8% undervalued, which sits within a reasonable margin of error for this kind of model.

Result: ABOUT RIGHT

MongoDB is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.

Approach 2: MongoDB Price vs Sales

For companies where profits are limited or earnings are less meaningful, the P/S ratio can be a useful way to compare what investors are paying for each dollar of revenue. It helps you judge how the market is valuing the current business activity rather than focusing on earnings that can be affected by accounting choices or heavy reinvestment.

Growth expectations and risk usually explain why one stock trades at a higher or lower P/S multiple than another. Higher expected growth or more predictable revenue can support a higher multiple, while higher risk or weaker fundamentals tend to justify a lower one.

MongoDB currently trades on a P/S ratio of 8.70x. This is above the broader IT industry average of 1.78x and also higher than the peer group average of 7.34x. Simply Wall St’s Fair Ratio framework estimates a P/S of 7.83x for MongoDB, based on factors such as its growth profile, industry, profit margin, market cap and key risks.

This Fair Ratio is designed to be more tailored than a simple comparison to peers or the industry because it adjusts for the company’s own characteristics rather than relying on broad averages. Comparing 8.70x to the 7.83x Fair Ratio suggests the stock is trading at a premium.

Result: OVERVALUED

P/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.

Upgrade Your Decision Making: Choose your MongoDB Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St’s Community page let you attach a clear story to the numbers by linking your view of MongoDB’s role in AI data infrastructure, its future revenue, earnings and margins to a fair value estimate. You can then compare that fair value with the current price to help you decide whether the stock looks attractive or stretched. Each Narrative updates automatically as new news or earnings arrive and can reflect very different perspectives. For example, one investor might align with a higher fair value around US$455.27 based on assumptions like 21.1% annual revenue growth, an 8.0% profit margin and a higher future P/E. Another might lean toward a lower fair value of US$250.00 using 17.4% revenue growth, a 7.6% profit margin and a lower future P/E. This gives you a simple way to see where your own expectations sit on that spectrum.

For MongoDB, however, we will make it really easy for you with previews of two leading MongoDB Narratives:

These give you a clear bullish and bearish framework so you can quickly see which assumptions feel closer to your own view on the stock.

Fair value: US$455.27

Implied discount to this fair value: 41.4% undervalued

Revenue growth assumption: 21.1%

• Assumes strong customer and workload growth as AI features, modernization tools, and Atlas adoption support higher revenue and margin improvement.
• Builds in a view that MongoDB can win more share from legacy databases across industries and regions, helping support recurring revenue and earnings over time.
• Requires confidence that by 2029 the company can reach US$4.4b of revenue, earnings of US$351.3m and support a P/E of about 128x on those earnings.

Fair value: US$250.00

Implied premium to this fair value: 6.3% overvalued

Revenue growth assumption: 17.4%

• Focuses on risks from tighter regulations, stronger hyperscaler offerings, and open source competition that could pressure international growth and margins.
• Flags the possibility that multi model, integrated data platforms and AI automation reduce the appeal of MongoDB as a standalone document database.
• Requires you to be comfortable with a scenario where 2029 revenue reaches about US$4.0b, earnings are US$304.3m and the stock trades on a P/E of about 81x.

If neither view feels quite right, you can build a Narrative that matches your own expectations for revenue growth, margins, and risk, then track how those assumptions compare with the current share price over time.

Do you think there's more to the story for MongoDB? 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.