Freshworks Inc. (FRSH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+80.5%

$25.64

vs $14.21 price

Levered DCF

$31.04

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.4

Distress zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.44×	-50.53×	-49.98×	-17.94×	-2.53×	-7.43×	-72.05×	190.2×
P/B	3.45×	4.28×	6.42×	3.98×	5.84×	-4.46×	-1.99×	8.16×
P/S	4.25×	6.75×	11.54×	8.41×	19.5×	48.17×	12.94×	6.39×
EV / EBITDA	38.39×	-39.1×	-57.57×	-18.72×	-38.56×	-265.45×	-92.04×	48.45×
Gross margin	85.0%	84.3%	82.7%	80.8%	79.0%	79.0%	78.8%	83.9%
Operating margin	1.6%	-19.2%	-28.5%	-46.9%	-55.2%	-22.5%	-17.2%	8.9%
Net margin	21.9%	-13.2%	-23.0%	-46.6%	-51.7%	-22.9%	-18.1%	3.4%
Current ratio	2.2×	3.1×	4.14×	4.63×	6.36×	2.05×	2.81×	0.37×
Debt / equity	0.04×	0.03×	0.03×	0.03×	0×	0×	0×	0.83×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	2.16×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.8%	-8.4%	-12.8%	-22.1%	-15.5%	2.1%	2.8%	4.4%
Return on invested capital	1.2%	-11.4%	-15.0%	-20.9%	-16.3%	-26.1%	-13.3%	3.7%
Return on assets	11.5%	-5.9%	-9.4%	-16.8%	-12.9%	-15.6%	-9.7%	1.8%
Free cash flow yield	6.9%	3.0%	1.1%	-0.4%	0.0%	0.2%	-1.0%	1.2%
Earnings yield	5.2%	-2.0%	-2.0%	-5.5%	-2.7%	-0.5%	-1.4%	0.5%
Enterprise value	$3B	$4.3B	$6.4B	$3.9B	$6.5B	$11.9B	$2.2B	$884.7M
Net debt / EBITDA	-6.66×	5.31×	4.11×	1.29×	4.45×	2.12×	3.2×	4.18×
Cash conversion cycle (days)	32	57	47	31	21	24	15	-65