Freshworks Inc.

NasdaqGS:FRSH Stock Report

Market Cap: US$4.7b

Freshworks Valuation

Is FRSH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FRSH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRSH ($15.33) is trading below our estimate of fair value ($25.81)

Significantly Below Fair Value: FRSH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FRSH?

Key metric: As FRSH is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FRSH. This is calculated by dividing FRSH's market cap by their current revenue.
What is FRSH's PS Ratio?
PS Ratio6.8x
SalesUS$685.96m
Market CapUS$4.66b

Price to Sales Ratio vs Peers

How does FRSH's PS Ratio compare to its peers?

The above table shows the PS ratio for FRSH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.5x
INTA Intapp
11.3x13.8%US$5.0b
IDCC InterDigital
6.7x-13.8%US$4.8b
ZETA Zeta Global Holdings
5.1x17.1%US$4.5b
ASAN Asana
7x11.2%US$5.1b
FRSH Freshworks
6.8x12.4%US$4.7b

Price-To-Sales vs Peers: FRSH is good value based on its Price-To-Sales Ratio (6.8x) compared to the peer average (7.5x).

Price to Sales Ratio vs Industry

How does FRSH's PS Ratio compare vs other companies in the US Software Industry?

79 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.03b
PGY Pagaya Technologies
0.7x15.5%US$641.54m
XPER Xperi
0.9x1.8%US$457.27m
EGHT 8x8
0.5x1.5%US$351.48m
FRSH 6.8xIndustry Avg. 5.3xNo. of Companies79PS048121620+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FRSH is expensive based on its Price-To-Sales Ratio (6.8x) compared to the US Software industry average (5.3x).

Price to Sales Ratio vs Fair Ratio

What is FRSH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FRSH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.8x
Fair PS Ratio6.5x

Price-To-Sales vs Fair Ratio: FRSH is expensive based on its Price-To-Sales Ratio (6.8x) compared to the estimated Fair Price-To-Sales Ratio (6.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FRSH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$15.33
US$18.56
+21.1%
13.2%US$24.00US$14.00n/a16
Dec ’25US$15.99
US$18.38
+14.9%
13.3%US$24.00US$14.00n/a16
Nov ’25US$12.05
US$16.66
+38.2%
15.6%US$21.00US$11.00n/a16
Oct ’25US$11.20
US$17.47
+56.0%
10.2%US$21.00US$14.00n/a15
Sep ’25US$11.68
US$17.47
+49.5%
10.2%US$21.00US$14.00n/a15
Aug ’25US$11.97
US$17.47
+45.9%
10.2%US$21.00US$14.00n/a15
Jul ’25US$12.81
US$19.13
+49.4%
12.3%US$25.00US$15.00n/a15
Jun ’25US$12.88
US$19.13
+48.6%
12.3%US$25.00US$15.00n/a15
May ’25US$18.25
US$26.07
+42.9%
10.5%US$30.00US$20.00n/a17
Apr ’25US$18.25
US$26.19
+43.5%
9.9%US$30.00US$20.00n/a17
Mar ’25US$20.26
US$26.19
+29.3%
9.9%US$30.00US$20.00n/a17
Feb ’25US$22.76
US$25.36
+11.4%
11.7%US$30.00US$20.00n/a16
Jan ’25US$23.49
US$24.00
+2.2%
11.9%US$30.00US$20.00n/a15
Dec ’24US$21.21
US$23.40
+10.3%
8.9%US$27.00US$20.00US$15.9915
Nov ’24US$17.55
US$23.40
+33.3%
8.9%US$27.00US$20.00US$12.0515
Oct ’24US$19.92
US$25.47
+27.8%
5.9%US$28.00US$22.00US$11.2015
Sep ’24US$22.30
US$22.94
+2.9%
9.8%US$27.00US$19.00US$11.6816
Aug ’24US$18.24
US$18.44
+1.1%
16.4%US$25.00US$14.00US$11.9716
Jul ’24US$17.58
US$17.80
+1.3%
17.2%US$25.00US$14.00US$12.8115
Jun ’24US$15.48
US$17.80
+15.0%
17.2%US$25.00US$14.00US$12.8815
May ’24US$13.28
US$18.40
+38.6%
15.9%US$25.00US$14.00US$18.2515
Apr ’24US$15.36
US$18.50
+20.4%
15.4%US$25.00US$14.00US$18.2514
Mar ’24US$14.50
US$18.50
+27.6%
15.4%US$25.00US$14.00US$20.2614
Feb ’24US$16.96
US$17.36
+2.3%
18.2%US$25.00US$14.00US$22.7614
Jan ’24US$14.71
US$17.31
+17.7%
19.1%US$25.00US$14.00US$23.4913
Dec ’23US$15.19
US$17.11
+12.6%
19.1%US$25.00US$14.00US$21.2114

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 23:53
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Freshworks Inc. is covered by 23 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robert OliverBaird
Ishan MajumdarBaptista Research
Raimo LenschowBarclays