Freshworks Inc (FRSH) Fair Value & Analysis
Technology · US · Market cap $2.9B
Freshworks Inc
FRSH · US
Fair value as of: Jul 11, 2026
From 24 valuation models · updated 29 days ago
Share price +16.4% over the past month.
A strong business, but screening 30% overvalued on our models.
What matters now
- A high-quality business (quality 79/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($10.39). The favourable scenario is already priced in.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.
How to read this chart
58‑month range $6.88 – $50.25 · fair‑value band $6.23 – $10.39 · the $11.84 price screens above the $8.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.
Analysis
Freshworks Inc (FRSH) currently trades at $11.84, while our model-based Fair Value estimate is $8.31, implying the stock looks roughly 29.8% overvalued today. The Quality Score stands at 79/100 (high quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Freshworks Inc generated revenue of $871M at a net margin of 20.7%. Revenue grew 16.5% year over year. It earns a return on equity of 17.3%. The balance sheet holds a net cash position of $566M. Fundamentals as of Jul 11, 2026
Our scenario range runs from $6.23 (bear case) to $10.39 (bull case); at $11.84, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 74% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -30%, FRSH screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 24 models by family
Widest divergence: Growth Earnings ($21.93) versus Asset-Based ($2.74). Highest evidence: Growth DCF (72).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 78 · Market factors (momentum, volatility) 49
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX).
Full company description
Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company's Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Freshworks Inc reported revenue of $839M in FY2025 versus $371M in FY2021, a compound +22.6%/yr. Reported net income was $184M in FY2025.
FRSH screens 30% overvalued. Compare with SAP SE →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Freshworks Achieves FedRAMP® "In Process" Designation for Freshservice, Advancing AI-Powered Service Operations for the Public Sector
- Freshworks to Participate in Oppenheimer 29th Annual Technology, Internet & Communications Conference
- Freshworks (FRSH) Is Up 7.7% After Raising 2026 Outlook on AI Demand and Turning GAAP Profitable
- FRSH Q2 Earnings Call Highlights EX Growth and AI Monetization
Peer Group
Software - Application · 709 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Software - Application median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAPS | C$12.69 | C$16.26 | +28% |
| Shopify Inc SHOP | C$173.23 | C$20.54 | -88% |
| Uber Technologies, Inc UBER | $72.67 | $51.11 | -30% |
| Salesforce, Inc CRM | $170.77 | $182.10 | +7% |
| ServiceNow, Inc NOW | $107.71 | $33.12 | -69% |
| Cadence Design Systems, Inc CDNS | $384.17 | $80.41 | -79% |
| Snowflake Inc SNOW | $271.87 | $34.04 | -87% |
| Adobe Inc ADBE | $230.61 | $379.48 | +65% |
| Automatic Data Processing, Inc ADP | $241.92 | $177.51 | -27% |
| Intuit Inc INTU | $291.09 | $258.69 | -11% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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