We use cookies to analyze site traffic and improve your experience.
By accepting, you consent to the use of analytics cookies.

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.

Market Outlook

Short Term

< 1 year
Neutral
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 years
Positive
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 years
Positive
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

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.