Freshworks (FRSH): Exploring Valuation After Recent Share Price Declines

Freshworks (FRSH) stock has seen some movement recently, piquing investor interest as they evaluate the company's latest results and overall performance. Over the past month, shares are down roughly 3%, and the past 3 months show a steeper decline.

See our latest analysis for Freshworks.

After dropping steadily much of the year, Freshworks now trades at $11.10 per share, reflecting a year-to-date share price return of -30.19%. Coupled with a one-year total shareholder return of -7.88%, sentiment appears to be fading as investors recalibrate expectations and watch for new signs of momentum.

If the changing outlook at Freshworks has you curious about other opportunities, now is an ideal time to broaden your search and discover fast growing stocks with high insider ownership

The big question for investors now is whether Freshworks is trading at a discount that undervalues its future potential, or if the market has already factored in what lies ahead. Could this be a buying opportunity, or is growth already priced in?

Most Popular Narrative: 43.5% Undervalued

Freshworks currently trades at $11.10, compared to a widely followed fair value estimate of $19.64. This substantial gap has caught the attention of analysts and investors looking for overlooked upside or hidden risks.

The rapid adoption of AI-powered features (such as Copilot and Agentic AI) across both new and existing Freshworks customers is outpacing internal expectations. Over 5,000 paying customers and high attach rates in large deals are reported. As AI monetization expands and early-access Agentic products move to paid solutions, management expects this to materially boost revenue growth and average selling prices in 2026 and beyond.

Read the complete narrative.

Curious what’s fueling this bullish fair value? The narrative is built on some daring projections, combining rapid technology adoption with profitability patterns not typical for most SaaS contenders. Wondering how far forward-looking profit margins and revenue growth rates really go? See the full story to uncover the model that underpins this price target.

Result: Fair Value of $19.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising competition in AI-driven platforms and ongoing margin pressure could challenge Freshworks' ability to sustain strong growth and upside potential.

Find out about the key risks to this Freshworks narrative.

Build Your Own Freshworks Narrative

If you have a different take or want to dig into the numbers yourself, you can easily craft your own view on Freshworks in just a few minutes. Do it your way

A great starting point for your Freshworks research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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