FRSH:NASDAQFreshworks Inc. Analysis
Data as of 2026-04-04 - not real-time
$8.32
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Freshworks (FRSH) trades at $8.32, roughly half of its DCF‑derived fair value of $16.54, implying a ~48% upside. Valuation metrics are compelling: a trailing PE of 13x versus an industry average of 33x, and revenue growth of 14.5% with an 85% gross margin underscore strong fundamentals. Technical signals are mixed; the price sits above the 20‑day SMA but below the 50‑day SMA, the MACD histogram is positive and the MACD line is above its signal, while the 30‑day volatility is high at ~48% and beta slightly above 1, indicating a bearish trend but potential for a near‑term bounce.
Recent material news highlights the launch of a new IT Asset Management offering and a Q4 earnings beat (non‑GAAP EPS $0.14 vs $0.12 estimate), reinforcing growth momentum. Combined with a solid cash position ($781M) and modest debt, the stock appears significantly undervalued and positioned for recovery, though short‑term volatility remains a concern.
Recent material news highlights the launch of a new IT Asset Management offering and a Q4 earnings beat (non‑GAAP EPS $0.14 vs $0.12 estimate), reinforcing growth momentum. Combined with a solid cash position ($781M) and modest debt, the stock appears significantly undervalued and positioned for recovery, though short‑term volatility remains a concern.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price near support at $7.78 with resistance at $8.80
- Bullish MACD histogram but overall bearish trend
- High short‑term volatility (~48%)
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Revenue growth of 14.5% and gross margin of 85%
- DCF fair value indicating ~48% upside
- Recent product launch expanding addressable market
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Strong cash balance and low leverage
- Recurring SaaS revenue model with high customer stickiness
- Undervaluation relative to industry peers and favorable earnings outlook
Key Metrics & Analysis
Financial Health
Revenue Growth14.50%
Profit Margin21.90%
P/E Ratio13.2
ROE16.93%
ROA0.53%
Debt/Equity4.12
P/B Ratio2.3
Op. Cash Flow$242.4M
Free Cash Flow$160.1M
Industry P/E33.5
Technical Analysis
TrendBearish
RSI52.9
Support$7.78
Resistance$8.80
MA 20$8.09
MA 50$8.57
MA 200$11.66
MACDBullish
VolumeStable
Fear & Greed Index78.8
Valuation
Fair Value$16.54
Target Price$12.38
Upside/Downside48.85%
GradeUndervalued
TypeGrowth
Risk Assessment
Beta1.08
Volatility47.98%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.