★FRSH
Freshworks Inc. · Software - Application
FCF$238mC
Rev+16.4%B+
D/E0.04A-
P/E17.0xA-
PEG0.55A-
1Y Target$11.75Analyst consensus · 12 analysts
5Y Target$14.83Compound horizon
10Y Target$19.02Long-dated conviction
FCF$238mTTMCFCF $238m — modest; watch for margin expansion
Rev+16.4%TTM YoYB+Revenue +16.4% — above sector median, healthy trajectory
D/E0.04A-D/E 0.04 — less debt than most Technology peers (≈25th pctile)
P/E17.0xA-P/E 17.0 — cheaper than most Technology peers (≈25th pctile)
PEG0.55A-PEG 0.55 — 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 · 75
Quality0.62
Growth0.96
Value0.71
Entry · Margin of safety
52-week rangeMid-range33% off the 12-month high vs DCF fair value54% belowest. fair value ~$22
Quality signals · context only
Gross profitability46% · A-gross profit ÷ total assets (Novy-Marx)
ROIC1.2% · Creturn on invested capital — not score-weighted
Why now
Software - Application · market cap $2.9b. Down 33% from 52-week high of $15.41 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.55 — paying under fair value for the growth rate. 12 sell-side analysts publish a mean 1-yr target of $11.75 (implying +13% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 132% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 33% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $11.75 (12-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $14.83 at ~7% CAGR — dividend + buyback compounding. 10 yr $19.02 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
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Position sizing · FRSH
Position size
$1,997
4.0% of portfolio
Stop price
$7.80
25% below $10.40
$ at risk if stopped
$499.20
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 75 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-), P/E (A-) and PEG (A-). On valuation, FRSH sits about 54% below our discounted-cash-flow fair value (a margin of safety).
Is FRSH a good stock to buy?
Bull Rankings scores FRSH 75 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-), P/E (A-) and PEG (A-). 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 75 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-), P/E (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is FRSH overvalued or undervalued?
Based on $10.40, FRSH sits about 54% below our discounted-cash-flow fair value (a margin of safety). It trades at a 17.0x× P/E (graded A-). 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?
Down 33% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
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 adviser.
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