Stock analysis · Bull Rankings model

FRSH analysis

Freshworks Inc.Software - Application. Scored on the same transparent model behind the daily rankings.

FRSH
Freshworks Inc. · Software - Application
FCF$234mC
Rev+15.6%B+
D/E0.04A-
P/E20.6xB+
PEG0.66A-
73.8Score
$12.98$3.4B
1Y Target$14.38Analyst consensus · 13 analysts
5Y Target$18.16Compound horizon
10Y Target$23.29Long-dated conviction
FCF$234mTTM
C
FCF $234m — modest; watch for margin expansion
Rev+15.6%TTM YoY
B+
Revenue +15.6% — above sector median, healthy trajectory
D/E0.04
A-
D/E 0.04 — less debt than most Technology peers (≈25th pctile)
P/E20.6x
B+
P/E 20.6 — below the Technology median (≈40th pctile)
PEG0.66
A-
PEG 0.66 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 73.8
Quality65.3
Growth90.0
Value68.4
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week high
7% off the 12-month high
vs DCF fair value44% belowest. fair value ~$23
What the price assumes: free cash flow compounding at ~0% a year for the next decade — vs the ~24% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability52% · Agross profit ÷ total assets (Novy-Marx)
ROIC2.7% · Creturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Freshworks' Freshdesk Omni AI‑powered omnichannel platform is unlocking deeper enterprise spend, driving 15.9% YoY revenue growth, while its 20.7% profit margin and PEG of 0.61 signal a high‑quality growth engine; our Bull Rankings model awards a 78.7/100 quality‑growth score with Growth as the strongest pillar, underscoring the compounding power of its CX suite. The market currently prices only a -1% free‑cash‑flow growth over ten years—far below the actual growth trajectory—creating a clear upside catalyst. The thesis rests on sustained adoption of Freshdesk Omni expanding the revenue base at double‑digit rates.
Moat
Freshworks' moat lies in the sticky, integrated CX stack anchored by Freshdesk Omni, which locks customers into a unified ticketing, chat, and AI workflow that is costly to replace, delivering a ROE of 17.7% driven by pricing power in the SaaS CX category. Low debt (D/E 0.04) and a beta of 0.86 further reinforce financial resilience, allowing the company to reinvest cash into product innovation that competitors cannot replicate quickly.
Risk
The bear case centers on the elevated P/E of 19.3 for a growth name, implying the market may be overpaying if revenue growth decelerates from the current 15.9% pace; any slowdown would compress margins and erode the 20.7% profit margin. A sustained dip in AI‑driven CX spending or a successful competitor launch could force the stock toward its 52‑week low of $6.79, confirming the downside.
Horizon
1-3 yr $14.38 (13-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $18.16 at ~7% CAGR — dividend + buyback compounding. 10 yr $23.29 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

FRSH vs the Top Picks average

PillarFRSHBook avgDiff
Quality0.650.84-0.19
Growth0.900.84+0.06
Value0.680.78-0.10

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-1.7 over 47 daily scores
From 75.5 (Jun 22) → 73.8 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+4.3%
90-day change+3.8%
Forward EPS estimate$0.83

Over the last 90 days, what analysts expect FRSH to earn is drifting higher (+3.8%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
154
Position size
$1,999
4.0% of portfolio
Stop price
$9.73
25% below $12.98
$ at risk if stopped
$499.73
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Freshworks Inc. (FRSH): score, valuation & FAQ

Freshworks Inc. (FRSH) is a Software - Application company that scores 73.8 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-), PEG (A-) and Rev (B+). On valuation, FRSH sits about 44% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade.

Is FRSH a good stock to buy?

Bull Rankings scores FRSH 73.8 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-), PEG (A-) and Rev (B+). A score is a quantitative screen of Freshworks Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does FRSH score 73.8 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). FRSH earns its highest marks on D/E (A-), PEG (A-) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is FRSH overvalued or undervalued?

Based on $12.98, FRSH sits about 44% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade. It trades at a 20.6x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in FRSH?

The bear case centers on the elevated P/E of 19.3 for a growth name, implying the market may be overpaying if revenue growth decelerates from the current 15.9% pace; any slowdown would compress margins and erode the 20.7% profit margin. A sustained dip in AI‑driven CX spending or a successful competitor launch could force the stock toward its 52‑week low of $6.79, confirming the downside.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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