Freshworks Inc. (FRSH) Financial Ratios
12 years of historical data (2014–2025) · Technology · Software - Application
EV/EBITDA
27.13
↓-36% vs avg
5yr avg: 42.62
30Y Low42.6·High42.6
P/FCF
↓
10.18
↓-99% vs avg
5yr avg: 805.96
30Y Low14.7·High88.4
P/B Ratio
↓
2.57
↓-46% vs avg
5yr avg: 4.80
30Y Low3.5·High6.4
ROE
↑
16.9%
↓+309% vs avg
5yr avg: -8.1%
30Y Low-20%·High17%
Debt/EBITDA
0.94
+0% vs avg
5yr avg: 0.94
30Y Low0.9·High5.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
FRSH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Freshworks Inc. trades at 14.3x earnings, 26% below its 5-year average of 19.4x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 27.7x, the stock trades at a discount of 48%. On a free-cash-flow basis, the stock trades at 10.2x P/FCF, 99% below the 5-year average of 806.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.5B | $3.6B | $4.9B | $6.9B | $4.2B | $7.2B | — | — | — | — | — |
| Enterprise Value | $1.9B | $3.0B | $4.3B | $6.4B | $3.9B | $6.5B | — | — | — | — | — |
| P/E Ratio → | 14.33 | 19.44 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.98 | 4.29 | 6.75 | 11.54 | 8.41 | 19.50 | — | — | — | — | — |
| P/B Ratio | 2.57 | 3.48 | 4.28 | 6.42 | 3.98 | 5.84 | — | — | — | — | — |
| P/FCF | 10.18 | 14.68 | 33.32 | 88.45 | — | 3087.40 | — | — | — | — | — |
| P/OCF | 9.95 | 14.34 | 30.28 | 79.89 | — | 631.22 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
FRSH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Freshworks Inc.'s enterprise value stands at 27.1x EBITDA, 36% below its 5-year average of 42.6x. The Technology sector median is 17.5x, placing the stock at a 55% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.62 | 5.94 | 10.77 | 7.87 | 17.48 | — | — | — | — | — |
| EV / EBITDA | 27.13 | 42.62 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 141.85 | 56.93 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 12.37 | 29.34 | 82.56 | — | 2768.21 | — | — | — | — | — |
FRSH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Freshworks Inc. earns an operating margin of 1.6%. Operating margins have expanded from -28.5% to 1.6% over the past 3 years, signaling improving operational efficiency. ROE of 16.9% indicates solid capital efficiency. ROIC of 2.0% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.0% | 85.0% | 84.3% | 82.7% | 80.8% | 79.0% | 79.0% | 78.8% | 83.9% | 78.1% | 77.7% |
| Operating Margin | 1.6% | 1.6% | -19.2% | -28.5% | -46.9% | -55.2% | -22.5% | -17.2% | 8.9% | -12.0% | 7.6% |
| Net Profit Margin | 21.9% | 21.9% | -13.2% | -23.0% | -46.6% | -51.7% | -22.9% | -18.1% | 3.4% | -0.0% | 2.1% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.9% | 16.9% | -8.6% | -12.9% | -20.3% | -15.5% | — | — | 4.3% | -0.0% | 2.7% |
| ROA | 11.4% | 11.4% | -6.2% | -9.7% | -16.2% | -20.8% | -16.6% | -10.9% | 1.8% | -0.0% | 1.0% |
| ROIC | 2.0% | 2.0% | -17.8% | -18.3% | -27.5% | -31.3% | — | — | 4.6% | -5.3% | 3.5% |
| ROCE | 1.2% | 1.2% | -11.9% | -15.2% | -19.7% | -27.8% | -25.6% | -13.6% | 5.2% | -6.1% | 3.8% |
FRSH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Freshworks Inc. carries a Debt/EBITDA ratio of 0.9x, which is very conservative (68% below the sector average of 2.9x). The company holds a net cash position — cash of $632M exceeds total debt of $67M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.06 | 0.06 | 0.03 | 0.03 | 0.03 | — | — | — | 0.83 | 0.93 | 1.07 |
| Debt / EBITDA | 0.94 | 0.94 | — | — | — | — | — | — | 4.43 | — | 4.97 |
| Net Debt / Equity | — | -0.55 | -0.51 | -0.43 | -0.26 | -0.60 | — | — | 0.77 | 0.91 | 1.05 |
| Net Debt / EBITDA | -7.95 | -7.95 | — | — | — | — | — | — | 4.12 | — | 4.88 |
| Debt / FCF | — | -2.31 | -3.99 | -5.89 | — | -319.19 | -4.06 | — | 7.89 | 8.07 | — |
| Interest Coverage | — | — | — | — | — | — | — | — | 2.11 | -2.85 | — |
Net cash position: cash ($632M) exceeds total debt ($67M)
FRSH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Freshworks Inc.'s current ratio of 2.14x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 4.14x to 2.14x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.14 | 2.14 | 3.10 | 4.14 | 4.63 | 6.36 | 2.05 | 2.81 | 0.37 | 0.34 | 0.57 |
| Quick Ratio | 2.14 | 2.14 | 3.10 | 4.14 | 4.63 | 6.36 | 2.05 | 2.81 | 0.35 | 0.31 | 0.53 |
| Cash Ratio | 1.69 | 1.69 | 2.62 | 3.63 | 4.22 | 5.93 | 1.56 | 2.27 | 0.18 | 0.08 | 0.09 |
| Asset Turnover | — | 0.52 | 0.45 | 0.41 | 0.36 | 0.25 | 0.68 | 0.54 | 0.51 | 0.48 | 0.46 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 37.19 | 36.10 | 30.91 |
| Days Sales Outstanding | — | 65.63 | 62.27 | 59.47 | 53.70 | 50.92 | 50.10 | 51.44 | 10.29 | 11.65 | 15.33 |
FRSH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Freshworks Inc. returns 15.5% to shareholders annually primarily through share buybacks. The earnings yield of 7.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.0% | 5.1% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 9.8% | 6.8% | 3.0% | 1.1% | — | 0.0% | — | — | — | — | — |
| Buyback Yield | 15.5% | 10.7% | 0.3% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 15.5% | 10.7% | 0.3% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $294M | $301M | $293M | $285M | $275M | $253M | $47M | $17M | $17M | $17M |
Peer Comparison
Compare FRSH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 FRSHYou | $2B | 14.3 | 27.1 | 10.2 | 85.0% | 1.6% | 16.9% | 2.0% | 0.9 |
 HUBS | $13B | 284.1 | 69.2 | 17.8 | 83.8% | 0.4% | 2.3% | 0.4% | 2.8 |
 CRM | $179B | 23.9 | 20.0 | 12.4 | 77.7% | 21.5% | 12.4% | 10.9% | 0.8 |
 DDOG | $67B | 629.1 | 874.0 | 67.1 | 80.0% | -1.3% | 3.3% | -0.8% | 19.6 |
 BILL | $4B | 163.6 | 492.7 | 12.0 | 81.4% | -5.5% | 0.6% | -1.4% | 200.5 |
 NOW | $97B | 56.0 | 37.6 | 21.2 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 TEAM | $24B | -94.3 | — | 17.1 | 82.8% | -2.5% | -21.6% | -110.3% | — |
 FIVN | $2B | 48.3 | 16.8 | 8.4 | 54.7% | 2.8% | 5.6% | 1.7% | 6.2 |
 NICE | $6B | 9.9 | 6.6 | 8.2 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 MSFT | $3.1T | 30.9 | 19.7 | 43.7 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 12 years · Updated daily
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Start ComparisonFRSH — Frequently Asked Questions
Quick answers to the most common questions about buying FRSH stock.
What is Freshworks Inc.'s P/E ratio?
Freshworks Inc.'s current P/E ratio is 14.3x. The historical average is 19.4x.
What is Freshworks Inc.'s EV/EBITDA?
Freshworks Inc.'s current EV/EBITDA is 27.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 42.6x.
What is Freshworks Inc.'s ROE?
Freshworks Inc.'s return on equity (ROE) is 16.9%. The historical average is -2.7%.
Is FRSH stock overvalued?
Based on historical data, Freshworks Inc. is trading at a P/E of 14.3x. Compare with industry peers and growth rates for a complete picture.
What are Freshworks Inc.'s profit margins?
Freshworks Inc. has 85.0% gross margin and 1.6% operating margin.
How much debt does Freshworks Inc. have?
Freshworks Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.