Stock Analysis & Valuation MongoDB, Inc. (0KKZ.L)

• Previous Close: £380.98
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	76.90	-80
Intrinsic value (DCF)	339.81	-11
Graham-Dodd Method	21.10	-94
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

MongoDB, Inc. is a leading provider of a general-purpose database platform, offering flexible and scalable solutions for modern applications. Headquartered in New York, MongoDB specializes in NoSQL databases, catering to enterprises, developers, and cloud-native applications. Its flagship products include MongoDB Enterprise Advanced, a commercial database server for on-premise, cloud, or hybrid environments; MongoDB Atlas, a fully managed multi-cloud database-as-a-service (DBaaS); and MongoDB Community Server, a free version for developers. The company operates in the high-growth Software-as-a-Service (SaaS) and database management sector, capitalizing on the increasing demand for scalable, non-relational databases in cloud computing, AI, and big data analytics. MongoDB's open-source roots and developer-friendly approach have helped it gain significant traction in the tech industry, competing with traditional SQL-based database providers while enabling agile application development.

Investment Summary

MongoDB presents a compelling growth opportunity in the expanding NoSQL and cloud database market, supported by strong revenue growth and increasing adoption of MongoDB Atlas. However, the company remains unprofitable, with negative net income and diluted EPS, reflecting heavy investments in R&D and sales expansion. Its high beta (1.492) indicates volatility, making it a higher-risk investment. The lack of dividends and reliance on continued cloud migration trends may concern conservative investors. Nevertheless, MongoDB's leadership in developer mindshare and its transition to a subscription-based SaaS model (Atlas) provide recurring revenue potential. Investors should weigh its growth prospects against valuation multiples and competitive pressures from larger tech players.

Competitive Analysis

MongoDB competes in the database management market by differentiating itself with a flexible document-based NoSQL architecture, appealing to developers building modern applications. Its competitive advantage lies in its developer-first approach, open-source community (MongoDB Community Server), and seamless multi-cloud capabilities (Atlas). Unlike traditional relational databases, MongoDB's schema-less design allows for faster iteration, making it ideal for agile development and unstructured data use cases like IoT and real-time analytics. However, it faces intense competition from cloud hyperscalers (AWS, Microsoft Azure, Google Cloud) offering proprietary database services and from legacy SQL providers like Oracle and Microsoft SQL Server. MongoDB's focus on horizontal scalability and ease of use gives it an edge in startups and mid-market enterprises, but it must continually innovate to defend against cloud-native alternatives like Amazon DynamoDB and Firebase. Its hybrid and multi-cloud support differentiates it from single-cloud DBaaS offerings, though pricing pressure from larger competitors remains a risk.

Major Competitors

• Oracle Corporation (ORCL): Oracle is a dominant player in relational databases (Oracle Database) and enterprise software, with strong on-premise and cloud offerings. Its Autonomous Database competes with MongoDB Atlas in cloud deployments. Oracle's weaknesses include slower adoption in developer communities and legacy perceptions, but its deep enterprise relationships and bundled solutions pose a threat to MongoDB's growth in large organizations.
• Microsoft Corporation (MSFT): Microsoft's Azure Cosmos DB is a direct competitor to MongoDB Atlas, offering multi-model NoSQL support with global distribution. Microsoft benefits from deep Azure integration and enterprise trust but lacks MongoDB's developer-centric branding. SQL Server remains a relational alternative, though Microsoft has embraced MongoDB's API compatibility in Cosmos DB, reducing migration friction.
• Amazon.com, Inc. (AMZN): Amazon Web Services (AWS) offers DocumentDB (MongoDB-compatible) and DynamoDB, competing directly with MongoDB's NoSQL solutions. AWS's scale, pricing power, and ecosystem integration make it formidable, but MongoDB's multi-cloud strategy avoids vendor lock-in. Amazon's strength in infrastructure-as-a-service (IaaS) contrasts with MongoDB's pure-play database focus.
• Alphabet Inc. (Google Cloud) (GOOGL): Google Cloud's Firestore and Bigtable compete with MongoDB in NoSQL and real-time database segments. Google's strengths include AI/ML integration and global scalability, but MongoDB's simpler pricing and developer tools appeal to mid-market customers. Google's weaker enterprise sales motion compared to AWS or Azure benefits MongoDB.
• International Business Machines Corporation (IBM): IBM offers Cloudant (Apache CouchDB-based) and Db2 as alternatives to MongoDB. IBM's legacy in enterprise databases and hybrid cloud (Red Hat) is a strength, but its slower innovation pace and complex pricing hinder competitiveness against MongoDB's agile positioning.
• PostgreSQL (Open Source) (POST): PostgreSQL, an open-source relational database, competes indirectly with MongoDB by offering JSON support and extensibility. While PostgreSQL lacks MongoDB's horizontal scaling simplicity, its SQL compliance and mature ecosystem attract traditional developers. MongoDB's document model remains superior for unstructured data workloads.