Freshworks Valuation

FRSH Stock  USD 8.92  0.17  1.94%   
At this time, the firm appears to be undervalued. Freshworks shows a prevailing Real Value of $10.74 per share. The current price of the firm is $8.92. Our model computes the value of Freshworks from reviewing the firm fundamentals such as Profit Margin of (0.04) %, current valuation of 1.74 B, and Shares Outstanding of 246.99 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Freshworks' valuation include:
Price Book
2.9555
Enterprise Value
1.7 B
Enterprise Value Ebitda
(26.51)
Price Sales
3.2068
Forward PE
12.6582
Undervalued
Today
8.92
Please note that Freshworks' price fluctuation is somewhat reliable at this time. Calculation of the real value of Freshworks is based on 3 months time horizon. Increasing Freshworks' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Freshworks is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Freshworks Stock. However, Freshworks' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  8.92 Real  10.74 Target  17.64 Hype  8.78
The intrinsic value of Freshworks' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Freshworks' stock price.
10.74
Real Value
13.53
Upside
Estimating the potential upside or downside of Freshworks helps investors to forecast how Freshworks stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Freshworks more accurately as focusing exclusively on Freshworks' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.150.170.21
Details
Hype
Prediction
LowEstimatedHigh
5.998.7811.57
Details
17 Analysts
Consensus
LowTarget PriceHigh
16.0617.6419.58
Details
When choosing an evaluation method for Freshworks, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.

Freshworks Cash

749.03 Million

Freshworks Total Value Analysis

Freshworks is currently projected to have valuation of 1.74 B with market capitalization of 2.6 B, debt of 38.29 M, and cash on hands of 1.17 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Freshworks fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
1.74 B
2.6 B
38.29 M
1.17 B

Freshworks Investor Information

About 83.0% of the company shares are owned by institutional investors. The book value of Freshworks was currently reported as 3.02. The company has Price/Earnings To Growth (PEG) ratio of 0.42. Freshworks recorded a loss per share of 0.11. The entity had not issued any dividends in recent years. Based on the key indicators related to Freshworks' liquidity, profitability, solvency, and operating efficiency, Freshworks is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in March.

Freshworks Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Freshworks has an asset utilization ratio of 44.69 percent. This signifies that the Company is making $0.45 for each dollar of assets. An increasing asset utilization means that Freshworks is more efficient with each dollar of assets it utilizes for everyday operations.
 
Yuan Drop
 
Covid
 
Interest Hikes

Freshworks Profitability Analysis

Based on Freshworks' profitability indicators, Freshworks may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in March. Profitability indicators assess Freshworks' ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2014-06-30
Previous Quarter
-1.7 M
Current Value
-4.7 M
Quarterly Volatility
28.2 M
 
Yuan Drop
 
Covid
 
Interest Hikes
The Freshworks' current Gross Profit is estimated to increase to about 733.1 M, while Pretax Profit Margin is projected to decrease to (0.15).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.76
Fairly Down
Slightly volatile
For Freshworks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Freshworks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Freshworks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Freshworks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Freshworks over time as well as its relative position and ranking within its peers.

Freshworks Earnings per Share Projection vs Actual

The next projected EPS of Freshworks is estimated to be 0.17275 with future projections ranging from a low of 0.1525 to a high of 0.2075. Freshworks' most recent 12-month trailing earnings per share (EPS TTM) is at -0.11. Please be aware that the consensus of earnings estimates for Freshworks is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Freshworks is projected to generate 0.17275 in earnings per share on the 31st of December 2026. Freshworks earnings estimates show analyst consensus about projected Freshworks EPS (Earning Per Share). It derives the highest and the lowest estimates based on Freshworks' historical volatility. Many public companies, such as Freshworks, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Freshworks Earnings Estimation Breakdown

The calculation of Freshworks' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Freshworks is estimated to be 0.17275 with the future projection ranging from a low of 0.1525 to a high of 0.2075. Please be aware that this consensus of annual earnings estimates for Freshworks is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.15
Lowest
Expected EPS
0.17275
0.21
Highest

Freshworks Earnings Projection Consensus

Suppose the current estimates of Freshworks' value are higher than the current market price of the Freshworks stock. In this case, investors may conclude that Freshworks is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Freshworks' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
1647.08%
0.0
0.17275
-0.11

Freshworks Ownership Allocation

Freshworks holds a total of 246.99 Million outstanding shares. The majority of Freshworks outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Freshworks to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Freshworks. Please pay attention to any change in the institutional holdings of Freshworks as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Freshworks Profitability Analysis

The company reported the previous year's revenue of 720.42 M. Net Loss for the year was (95.37 M) with profit before overhead, payroll, taxes, and interest of 687.21 M.

About Freshworks Valuation

An absolute valuation paradigm, as applied to Freshworks Stock, attempts to find the value of Freshworks based on its fundamental and basic technical indicators. By analyzing Freshworks's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Freshworks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Freshworks. We calculate exposure to Freshworks's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Freshworks's related companies.
Last ReportedProjected for Next Year
Gross Profit698.2 M733.1 M
Pretax Profit Margin(0.13)(0.15)
Operating Profit Margin(0.22)(0.23)
Net Loss(0.15)(0.16)
Gross Profit Margin 0.76  0.64 

Freshworks Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding300.8 M
Forward Price Earnings12.6582

Freshworks Current Valuation Indicators

Valuation refers to the process of determining the present value of Freshworks and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Freshworks we look at many different elements of the entity such as Freshworks's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Freshworks, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Freshworks' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Freshworks' worth.

Complementary Tools for Freshworks Stock analysis

When running Freshworks' price analysis, check to measure Freshworks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Freshworks is operating at the current time. Most of Freshworks' value examination focuses on studying past and present price action to predict the probability of Freshworks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Freshworks' price. Additionally, you may evaluate how the addition of Freshworks to your portfolios can decrease your overall portfolio volatility.
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