Freshworks Inc. (FRSH) Fair Value 2026

FRSH · Services-Prepackaged Software ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

8.0 /10

32 fundamental signals · 13 models active

Value Trap Risk

WARN (49/100)

Quick Summary — As of 2026-07-14, Freshworks Inc. (FRSH) trades at $10.47, approximately 102% above CirclFi’s Bayesian DCF fair value of $5.18. QOC: 8.0/10. Value Trap Risk: 49/100 (WARN). 13/13 models active.

Key Facts

Ticker
FRSH
Price
$10.47
Quality Score
8.0/10
Value Trap Risk
49/100
Models Active
13/13
Last Updated
Strength: 13 independent models provide multi-angle coverage
Risk: Value Trap score of 49 suggests caution despite apparent undervaluation

Valuation Matrix

13 Intrinsic Value Models vs. Current Price ($10.47)

Core Models (Unlocked)
Model Fair Value Upside
Bayesian DCF
High Conviction
$5.18 -50.6%
Earnings Power Value
Medium Conviction
$7.17 -31.5%
CUCE Ensemble
Low Conviction
$6.49 -38.0%
First Chicago
High Conviction
$2.22 -78.8%

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What Is Freshworks Inc. (FRSH) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, Freshworks Inc.'s intrinsic value is estimated at $6.89, suggesting the stock is overvalued at its current price of $10.47. With 11 out of 13 models flagging downside (-34.2% average return), the market may be pricing in unsustainable growth. Notably, Markov DDM sees the most upside at +46.0% (fair value: $15.29), while ML-RIV is the most conservative at -80.6% ($2.03). The spread between these extremes — +126.6% — reveals how different analytical frameworks can reach starkly different conclusions.

What Do the Models Say About FRSH?

13 of 13 models are currently active for FRSH. Of these, 2 models suggest upside while 11 models suggest overvaluation. The Bayesian DCF estimates FRSH's intrinsic value at $5.18, implying -50.6% downside from the current price. See which stocks rank higher →

How Does FRSH Rank in Services-Prepackaged Software?

Among 216 Services-Prepackaged Software stocks, FRSH ranks #76 by Quality of Company score. CirclFi's QOC score of 8.0/10 evaluates 32 fundamental signals. A score of 8.0 indicates above-average quality.

See all Most Undervalued Services-Prepackaged Software Stocks →

Within the Services-Prepackaged Software space, Freshworks Inc. competes in an environment where annual recurring revenue (ARR) often separates market leaders from laggards. Understanding these industry-specific dynamics is essential context for interpreting our model outputs.

Is FRSH a Value Trap?

CirclFi's Value Trap algorithm assigns FRSH a score of 49/100 (WARN). This is a warning signal. Additional research into recent 10-Q filings is recommended. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

13 of 13 models are active for Freshworks Inc.. Broad coverage provides high confidence. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Quality of Company (QOC) framework, which evaluates 32 signals including margin stability, revenue growth trajectory, leverage, and free cash flow generation, Freshworks Inc. is rated at 8.0/10. This strong-tier score demonstrates strong fundamentals across the majority of our quality signals.

The gap between the most bullish and bearish model spans +126.6% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every FRSH valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across FRSH's 13 active models, average confidence is 36%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy Freshworks Inc. Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Services-Prepackaged Software Stocks Should You Also Analyze?

8 related Services-Prepackaged Software stocks with 13-model coverage

Read investment analysis: ALRM · APPF · CRM · CVLT · EGAN

See all Services-Prepackaged Software stocks ranked →

Frequently Asked Questions About Freshworks Inc.

What is Freshworks Inc.'s intrinsic value in 2026?

Based on CirclFi's 13-model analysis, Freshworks Inc. (FRSH) has multiple fair value estimates. The Bayesian DCF model runs 10,000 Monte Carlo simulations with jump-diffusion to estimate intrinsic value at $5.18. The Quality of Company score is 8.0/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is FRSH overvalued or undervalued right now?

At $10.47, 2 of 13 active models suggest FRSH may be undervalued, while 11 indicate potential overvaluation. The assessment depends on which methodology best fits Freshworks Inc.'s business model in Services-Prepackaged Software.

What does a Quality of Company score of 8.0 mean for FRSH?

Freshworks Inc.'s QOC of 8.0/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on FRSH?

CirclFi analyzes FRSH with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 13 of 13 are active for this stock. Read the full methodology →

Is FRSH a value trap in 2026?

Freshworks Inc.'s Value Trap score is 49/100 (WARN). This elevated score suggests the stock may look undervalued but faces deteriorating fundamentals — declining margins, rising debt, or shrinking revenue could make the apparent discount deceptive. Browse our ranked stock lists to compare value-trap scores across industries. Browse stocks by value-trap risk →

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