FRSH - Freshworks Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$11.63
DETAILS
HIGH:
$15.00
LOW:
$8.00
MEDIAN:
$11.50
CONSENSUS:
$11.63
UPSIDE:
28.08%
AlphaVal
Deterministic, archetype-aware fair value
High-Growth Software
80% confidence
Primary model: Revenue × Terminal Margin DCF
Adjust Assumptions
27.0%
29.0%
12.0%
Key Value Driver
Revenue growth (27%) × margin expansion to 29%
Terminal Value % of EV
57%
Implied Market Multiple
2.1x
Plain-Language Summary
Our base-case estimate uses a discounted cash flow model based on revenue growth and long-run free cash flow margins. We then blend that result with the average analyst price target of $11.63 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $28.65 per share.
Warnings
Gross margin of 85% means each dollar of revenue is highly profitable. As the company grows, overhead costs should shrink as a share of revenue, boosting overall profits.
Wall Street's average price target is $11.63 (from 18 analysts). Our estimate is 195% above the consensus -- consider that gap carefully.
Key Risks
- Current FCF misleads — the model values future margins, not today's cash
- SBC dilution is the hidden tax: 2-4% annual share growth compounds fast
- Revenue deceleration is inevitable — the question is when and how steep