Is Freshworks Stock a Good Investment?
Freshworks Investment Advice | FRSH |
- Examine Freshworks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Freshworks' leadership team and their track record. Good management can help Freshworks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Freshworks' business and its evolving consumer preferences.
- Compare Freshworks' performance and market position to its competitors. Analyze how Freshworks is positioned in terms of product offerings, innovation, and market share.
- Check if Freshworks pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Freshworks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Freshworks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Freshworks is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Freshworks Stock
Researching Freshworks' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are owned by institutional investors. The book value of Freshworks was currently reported as 3.56. The company has Price/Earnings To Growth (PEG) ratio of 0.82. Freshworks recorded a loss per share of 0.24. The entity had not issued any dividends in recent years.
To determine if Freshworks is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Freshworks' research are outlined below:
| 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 634.23 M. | |
| Over 86.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Principal Financial Group Inc. Has 7.24 Million Position in Freshworks Inc. - MarketBeat |
Freshworks Quarterly Good Will |
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Freshworks uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Freshworks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Freshworks' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Freshworks' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Freshworks' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-08-02 | 2022-06-30 | -0.07 | -0.06 | 0.01 | 14 | ||
2024-07-30 | 2024-06-30 | 0.06 | 0.08 | 0.02 | 33 | ||
2024-05-01 | 2024-03-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2024-11-06 | 2024-09-30 | 0.08 | 0.11 | 0.03 | 37 | ||
2024-02-06 | 2023-12-31 | 0.05 | 0.08 | 0.03 | 60 | ||
2023-10-31 | 2023-09-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2025-02-11 | 2024-12-31 | 0.1 | 0.14 | 0.04 | 40 | ||
2022-11-01 | 2022-09-30 | -0.05 | -0.01 | 0.04 | 80 |
Freshworks Target Price Consensus
Freshworks target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Freshworks' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 17 | Buy |
Most Freshworks analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Freshworks stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Freshworks, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationFreshworks Target Price Projection
Freshworks' current and average target prices are 14.62 and 19.81, respectively. The current price of Freshworks is the price at which Freshworks is currently trading. On the other hand, Freshworks' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Freshworks Target Price
Freshworks Analyst Ratings
Freshworks' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Freshworks stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Freshworks' financials, market performance, and future outlook by experienced professionals. Freshworks' historical ratings below, therefore, can serve as a valuable tool for investors.Know Freshworks' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Freshworks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Freshworks backward and forwards among themselves. Freshworks' institutional investor refers to the entity that pools money to purchase Freshworks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-12-31 | 3.6 M | Wellington Management Company Llp | 2025-03-31 | 3.5 M | Dimensional Fund Advisors, Inc. | 2025-03-31 | 3 M | Sc Us (ttgp), Ltd. | 2025-03-31 | 2.9 M | Renaissance Technologies Corp | 2025-03-31 | 2.8 M | Millennium Management Llc | 2025-03-31 | 2.5 M | Nuveen, Llc | 2025-03-31 | 2.5 M | Morgan Stanley - Brokerage Accounts | 2025-03-31 | 2.4 M | Driehaus Capital Management Llc | 2025-03-31 | 2.4 M | Vanguard Group Inc | 2025-03-31 | 26.2 M | Blackrock Inc | 2025-03-31 | 17.7 M |
Freshworks' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.19 B.Market Cap |
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Freshworks' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.07) | (0.07) | |
| Return On Capital Employed | (0.12) | (0.12) | |
| Return On Assets | (0.06) | (0.06) | |
| Return On Equity | (0.08) | (0.08) |
Determining Freshworks' profitability involves analyzing its financial statements and using various financial metrics to determine if Freshworks is a good buy. For example, gross profit margin measures Freshworks' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Freshworks' profitability and make more informed investment decisions.
Freshworks' Earnings Breakdown by Geography
Evaluate Freshworks' management efficiency
Freshworks has return on total asset (ROA) of (0.0435) % which means that it has lost $0.0435 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0686) %, meaning that it created substantial loss on money invested by shareholders. Freshworks' management efficiency ratios could be used to measure how well Freshworks manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.07. The current Return On Capital Employed is estimated to decrease to -0.12. As of now, Freshworks' Other Current Assets are increasing as compared to previous years. The Freshworks' current Total Current Assets is estimated to increase to about 1.3 B, while Net Tangible Assets are projected to decrease to under 910.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 3.78 | 3.69 | |
| Tangible Book Value Per Share | 2.99 | 3.14 | |
| Enterprise Value Over EBITDA | (39.10) | (41.05) | |
| Price Book Value Ratio | 4.28 | 4.06 | |
| Enterprise Value Multiple | (39.10) | (41.05) | |
| Price Fair Value | 4.28 | 4.06 | |
| Enterprise Value | 3.9 B | 4 B |
Leadership at Freshworks emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 0.971 |
Basic technical analysis of Freshworks Stock
As of the 19th of July, Freshworks shows the Mean Deviation of 1.92, downside deviation of 2.34, and Coefficient Of Variation of 1007.19. Freshworks technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Freshworks' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Freshworks insiders, such as employees or executives, is commonly permitted as long as it does not rely on Freshworks' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Freshworks insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Freshworks' Outstanding Corporate Bonds
Freshworks issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Freshworks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Freshworks bonds can be classified according to their maturity, which is the date when Freshworks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| FRESLN 425 02 OCT 50 Corp BondUS358070AB61 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| FMEGR 375 15 JUN 29 Corp BondUS35805BAA61 | View | |
| FMEGR 2375 16 FEB 31 Corp BondUS35805BAB45 | View | |
| FMEGR 1875 01 DEC 26 Corp BondUS35805BAC28 | View | |
| FMEGR 3 01 DEC 31 Corp BondUS35805BAE83 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View |
Understand Freshworks' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Freshworks' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.099 | |||
| Market Risk Adjusted Performance | 0.1586 | |||
| Mean Deviation | 1.92 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.34 | |||
| Coefficient Of Variation | 1007.19 | |||
| Standard Deviation | 2.48 | |||
| Variance | 6.13 | |||
| Information Ratio | 0.0424 | |||
| Jensen Alpha | 0.0282 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.045 | |||
| Treynor Ratio | 0.1486 | |||
| Maximum Drawdown | 12.3 | |||
| Value At Risk | (4.13) | |||
| Potential Upside | 3.79 | |||
| Downside Variance | 5.45 | |||
| Semi Variance | 4.52 | |||
| Expected Short fall | (2.05) | |||
| Skewness | 0.3994 | |||
| Kurtosis | 0.6736 |
| Risk Adjusted Performance | 0.099 | |||
| Market Risk Adjusted Performance | 0.1586 | |||
| Mean Deviation | 1.92 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.34 | |||
| Coefficient Of Variation | 1007.19 | |||
| Standard Deviation | 2.48 | |||
| Variance | 6.13 | |||
| Information Ratio | 0.0424 | |||
| Jensen Alpha | 0.0282 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.045 | |||
| Treynor Ratio | 0.1486 | |||
| Maximum Drawdown | 12.3 | |||
| Value At Risk | (4.13) | |||
| Potential Upside | 3.79 | |||
| Downside Variance | 5.45 | |||
| Semi Variance | 4.52 | |||
| Expected Short fall | (2.05) | |||
| Skewness | 0.3994 | |||
| Kurtosis | 0.6736 |
Consider Freshworks' intraday indicators
Freshworks intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Freshworks stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Freshworks Corporate Filings
F4 | 11th of July 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 6th of June 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 13th of May 2025 Other Reports | ViewVerify | |
| 17th of April 2025 Other Reports | ViewVerify |
Freshworks Stock media impact
There is far too much social signal, news, headlines, and media speculation about Freshworks that are available to investors today. This information is accessible both publicly - through Freshworks' media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Freshworks-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Freshworks news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Freshworks relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Freshworks' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Freshworks alpha.
Freshworks Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Freshworks can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Freshworks Historical Investor Sentiment
Investor biases related to Freshworks' public news can be used to forecast risks associated with an investment in Freshworks. The trend in average sentiment can be used to explain how an investor holding Freshworks can time the market purely based on public headlines and social activities around Freshworks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Freshworks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Freshworks and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Freshworks news discussions. The higher the estimate score, the more favorable the investor's outlook on Freshworks.
Freshworks Corporate Management
| Tyler Sloat | Chief Officer | Profile | |
| Philippa Lawrence | Chief Officer | Profile | |
| Stacey Epstein | Chief Officer | Profile | |
| Jason Loomis | Chief Officer | Profile | |
| Doug Farber | Senior Alliances | Profile | |
| Murali Swaminathan | Chief Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Freshworks. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. For more detail on how to invest in Freshworks Stock please use our How to Invest in Freshworks guide.You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freshworks. If investors know Freshworks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freshworks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.24) | Revenue Per Share | Quarterly Revenue Growth 0.189 | Return On Assets | Return On Equity |
The market value of Freshworks is measured differently than its book value, which is the value of Freshworks that is recorded on the company's balance sheet. Investors also form their own opinion of Freshworks' value that differs from its market value or its book value, called intrinsic value, which is Freshworks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freshworks' market value can be influenced by many factors that don't directly affect Freshworks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Freshworks' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Freshworks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freshworks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.