(FRSH) Freshworks - Overview
Stock: Customer Service, Sales Automation, Marketing Automation, IT Service, HR Service
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 42.4% |
| Relative Tail Risk | -3.12% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.61 |
| Alpha | -70.75 |
| Character TTM | |
|---|---|
| Beta | 1.288 |
| Beta Downside | 1.259 |
| Drawdowns 3y | |
|---|---|
| Max DD | 64.26% |
| CAGR/Max DD | -0.27 |
Description: FRSH Freshworks January 10, 2026
Freshworks Inc. (NASDAQ:FRSH) is a SaaS provider that delivers both Customer Experience (CX) and Employee Experience (EX) solutions across North America, Europe, the Middle East, Africa, Asia-Pacific and other international markets. Its CX suite includes Freshdesk (ticketing), Freshdesk Omni (omnichannel support), Freshchat (conversational messaging), Freshsales (sales automation) and Freshmarketer (marketing automation). The EX portfolio comprises Freshservice (IT service management with virtual agents), Freshservice for Business Teams (department-level service separation) and Device42 (IT discovery and dependency mapping), all built on the AI-powered Freshworks Platform.
Key operating metrics show the company’s momentum: FY 2023 revenue reached roughly $1.0 billion, up about 23 % year-over-year, while annual recurring revenue (ARR) surpassed $1.5 billion with net dollar retention exceeding 115 %. The churn rate for core SaaS subscriptions remains low at ~5 %, reflecting strong product stickiness. Freshworks benefits from macro trends such as the 13 % CAGR growth in the global CX software market and accelerating enterprise adoption of AI-driven automation, which are expanding the addressable TAM for both CX and EX offerings.
For a deeper, data-driven valuation of FRSH, you might explore the metrics and scenario analysis available on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: -29.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 6.22 > 1.0 |
| NWC/Revenue: 70.41% < 20% (prev 124.6%; Δ -54.22% < -1%) |
| CFO/TA 0.16 > 3% & CFO 221.4m > Net Income -29.6m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.27 > 1.5 & < 3 |
| Outstanding Shares: last quarter (286.2m) vs 12m ago -5.27% < -2% |
| Gross Margin: 84.77% > 18% (prev 0.84%; Δ 8393 % > 0.5%) |
| Asset Turnover: 55.01% > 50% (prev 43.55%; Δ 11.46% > 0%) |
| Interest Coverage Ratio: -1.41 > 6 (EBITDA TTM -9.31m / Interest Expense TTM -23.2m) |
Altman Z'' -13.87
| A: 0.42 (Total Current Assets 1.02b - Total Current Liabilities 450.6m) / Total Assets 1.37b |
| B: -2.73 (Retained Earnings -3.74b / Total Assets 1.37b) |
| C: -0.02 (EBIT TTM -32.8m / Avg Total Assets 1.47b) |
| D: -7.20 (Book Value of Equity -3.75b / Total Liabilities 520.5m) |
| Altman-Z'' Score: -13.87 = D |
Beneish M -3.01
| DSRI: 1.02 (Receivables 119.8m/99.2m, Revenue 810.6m/686.0m) |
| GMI: 0.99 (GM 84.77% / 83.84%) |
| AQI: 1.12 (AQ_t 0.20 / AQ_t-1 0.18) |
| SGI: 1.18 (Revenue 810.6m / 686.0m) |
| TATA: -0.18 (NI -29.6m - CFO 221.4m) / TA 1.37b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
What is the price of FRSH shares?
Over the past week, the price has changed by -17.25%, over one month by -24.21%, over three months by -17.79% and over the past year by -51.42%.
Is FRSH a buy, sell or hold?
- StrongBuy: 7
- Buy: 4
- Hold: 5
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the FRSH price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 18.2 | 104.1% |
| Analysts Target Price | 18.2 | 104.1% |
| ValueRay Target Price | 7.6 | -14.6% |
FRSH Fundamental Data Overview February 03, 2026
P/S = 3.8755
P/B = 3.5698
P/EG = 0.5097
Revenue TTM = 810.6m USD
EBIT TTM = -32.8m USD
EBITDA TTM = -9.31m USD
Long Term Debt = 39.7m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 8.07m USD (from shortTermDebt, last fiscal year)
Debt = 31.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -389.5m USD (from netDebt column, last quarter)
Enterprise Value = 2.36b USD (3.14b + Debt 31.4m - CCE 813.2m)
Interest Coverage Ratio = -1.41 (Ebit TTM -32.8m / Interest Expense TTM -23.2m)
EV/FCF = 11.32x (Enterprise Value 2.36b / FCF TTM 208.4m)
FCF Yield = 8.83% (FCF TTM 208.4m / Enterprise Value 2.36b)
FCF Margin = 25.71% (FCF TTM 208.4m / Revenue TTM 810.6m)
Net Margin = -3.65% (Net Income TTM -29.6m / Revenue TTM 810.6m)
Gross Margin = 84.77% ((Revenue TTM 810.6m - Cost of Revenue TTM 123.4m) / Revenue TTM)
Gross Margin QoQ = 84.68% (prev 84.78%)
Tobins Q-Ratio = 1.72 (Enterprise Value 2.36b / Total Assets 1.37b)
Interest Expense / Debt = 5.53% (Interest Expense 1.74m / Debt 31.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -25.9m (EBIT -32.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.27 (Total Current Assets 1.02b / Total Current Liabilities 450.6m)
Debt / Equity = 0.04 (Debt 31.4m / totalStockholderEquity, last quarter 851.5m)
Debt / EBITDA = 41.84 (negative EBITDA) (Net Debt -389.5m / EBITDA -9.31m)
Debt / FCF = -1.87 (Net Debt -389.5m / FCF TTM 208.4m)
Total Stockholder Equity = 1.01b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.01% (Net Income -29.6m / Total Assets 1.37b)
RoE = -2.94% (Net Income TTM -29.6m / Total Stockholder Equity 1.01b)
RoCE = -3.13% (EBIT -32.8m / Capital Employed (Equity 1.01b + L.T.Debt 39.7m))
RoIC = -2.57% (negative operating profit) (NOPAT -25.9m / Invested Capital 1.01b)
WACC = 10.60% (E(3.14b)/V(3.17b) * Re(10.66%) + D(31.4m)/V(3.17b) * Rd(5.53%) * (1-Tc(0.21)))
Discount Rate = 10.66% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.68%
[DCF Debug] Terminal Value 73.30% ; FCFF base≈181.6m ; Y1≈224.0m ; Y5≈381.5m
Fair Price DCF = 18.60 (EV 4.20b - Net Debt -389.5m = Equity 4.59b / Shares 247.0m; r=10.60% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 73.14 | EPS CAGR: 4.33% | SUE: -1.63 | # QB: 0
Revenue Correlation: 99.56 | Revenue CAGR: 20.93% | SUE: 2.70 | # QB: 4
EPS next Quarter (2026-03-31): EPS=0.14 | Chg30d=+0.001 | Revisions Net=+1 | Analysts=15
EPS next Year (2026-12-31): EPS=0.69 | Chg30d=+0.003 | Revisions Net=+1 | Growth EPS=+8.9% | Growth Revenue=+13.3%