Freshworks Inc.

FRSHdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Freshworks Inc. earns about -14% on invested capital, below its ~9% cost of capital, but has diluted owners by 125% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $18.75 and $32.69 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$371M1$498M2$596.4M3$720.4M3$838.8M3
Net income−$192M4−$232.1M5−$137.4M6−$95.4M6$183.7M6
Operating cash flow$11.5M7−$2.53M8$86.2M9$160.6M9$242.4M9
Capital expenditure$5.57M10$7.13M11$2.07M12$9.18M12$5.7M12
Free cash flow (derived)$5.9M7−$9.65M8$84.1M9$151.5M9$236.7M9
Total debt
Cash & equivalents$747.9M13$304.1M14$488.1M15$620.3M15$569.8M15
Diluted shares130.7M284.6M293.1M300.8M293.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$35.15
your share of equity
Profit it earned you last year
$6.25
Free cash flow it threw off
$8.06
Debt you’d be carrying

10 shares is a claim on $35.15 of net worth that earned you $6.25 and generated $8.06 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-14% avg · 5y
FY21 -29%FY22 -23%FY23 -17%FY24 -14%FY25 12%

It earned about -14% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+125% shares · 5y

Share count is up 125% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $18.75 and $32.69 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$32.69
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$151.5M
DCF · Growth Exit 5Y
$18.75
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$151.5M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$7.06
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $18.75
The three cases
Bear0.0%$9.31
Base20.0%$18.75
Bull20.0%$18.75

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001544522-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001544522-25-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001544522-26-000036 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001544522-24-000012 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001544522-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001544522-26-000036 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001544522-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001544522-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001544522-26-000036 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001544522-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001544522-25-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001544522-26-000036 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001544522-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001544522-25-000010 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001544522-26-000036 (CashAndCashEquivalentsAtCarryingValue)