Stock fact sheet · data as of
Freshworks Inc. (FRSH): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · High Growth
Is FRSH undervalued?
At 14.25 (close of 16 Oct 2026), FRSH trades 31% below the GLS average fair value of 20.61. That average comes from 8 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Freshworks Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between Graham Number (7.10) and GLS Growth (41.69). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FRSH under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for FRSH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 24.86 | +74% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.10 | -50% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 27.56 | +93% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 11.20 | -21% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 41.69 | +193% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 8.49 | -40% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 36.36 | +155% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 7.57 | -47% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.02 | -86% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 14.60 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Freshworks Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 17.1%, ROE 17.8%, ROA 11.5% - with debt at 0.04 times equity and a free-cash-flow yield of 6.7%.
Freshworks Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Professional Services 100% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 17.1% |
|---|---|---|---|
| GLS Moat | 4.1 / 10 | ROE | 17.8% |
| Debt / equity | 0.04 | ROA | 11.5% |
| Free-cash-flow yield | 6.7% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 84: Prime
With a Wheel Score of 84, Freshworks Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 16/20, Moat 6/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 62% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 34,528 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.6M shares a day on a market cap of $3.7B, with a beta of 0.90; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 31% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 6 / 15 | moat 4.1/10 | |
| Premium | 20 / 20 | implied volatility 62% | |
| Stability | 18 / 20 | 5.6M shares/day, $3.7B cap, beta 0.90 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Freshworks Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| QTWO Q2 Holdings, Inc. | 59.43 | 63.38 | +6% | 73Good | $3.7B |
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| WK Workiva Inc. | 72.64 | 43.15 | -68% | 58Fair | $4.0B |
| MNDY monday.com Ltd. | 94.30 | 124.48 | +24% | 76Good | $4.0B |
| FSLY Fastly, Inc. | 25.07 | 16.03 | -56% | 40Weak | $4.0B |
| BILL Bill.com Holdings, Inc. | 46.92 | 83.90 | +44% | 45Weak | $4.0B |
| BRZE Braze, Inc. | 30.38 | 15.98 | -90% | 45Weak | $3.5B |
| SRAD Sportradar Group AG | 11.63 | 6.85 | -70% | 59Fair | $3.4B |
| LIF Life360, Inc. | 42.14 | 29.57 | -42% | 47Weak | $3.4B |
| NATL NCR Atleos Corporation | 46.06 | 53.88 | +15% | 69Good | $3.4B |
| BULL Webull Corporation Class A Ordinary Shares | 6.30 | 7.07 | +11% | 73Good | $3.4B |
| INTA Intapp, Inc. | 43.63 | 43.07 | -1% | 45Weak | $3.3B |
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Start free See the Sunday ScanQuestions about FRSH
Is FRSH undervalued right now?
By the GLS models, yes: at 14.25 the stock is 31% below the average fair value of 20.61 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FRSH and what does it mean?
FRSH scores 84 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FRSH?
20.61 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Freshworks Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FRSH have listed options, and how liquid are they?
Yes. The nightly snapshot found 158 listed contracts with 34,528 open interest across all expiries and implied volatility of 62% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.