Latest Ratios: P/E Ratio 16.5x · EV/EBITDA 32.4x · ROE 16.9%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.9B | $3.6B | $4.9B | $6.9B | $4.2B | $7.2B | — | — | — | — | — |
| Enterprise Value | $2.3B | $3.0B | $4.3B | $6.4B | $3.9B | $6.5B | — | — | — | — | — |
| P/E Ratio → | 16.48 | 19.44 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 3.42 | 4.29 | 6.75 | 11.54 | 8.41 | 19.50 | — | — | — | — | — |
| P/B Ratio | 2.95 | 3.48 | 4.28 | 6.42 | 3.98 | 5.84 | — | — | — | — | — |
| P/FCF | 11.70 | 14.68 | 33.32 | 88.45 | — | 3087.40 | — | — | — | — | — |
| P/OCF | 11.44 | 14.34 | 30.28 | 79.89 | — | 631.22 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 32.37 | 42.62 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 169.27 | 56.93 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 12.37 | 29.34 | 82.56 | — | 2768.21 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.1% | 5.1% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 8.5% | 6.8% | 3.0% | 1.1% | — | 0.0% | — | — | — | — | — |
| Buyback Yield | 13.5% | 10.7% | 0.3% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 13.5% | 10.7% | 0.3% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $294M | $301M | $293M | $285M | $275M | $253M | $47M | $17M | $17M | $17M |
AI-driven seat pricing erosion
Based on reported figures, Freshworks trades at a P/E of 15.63, yet this multiple appears artificially compressed by non-operating interest income, suggesting that investors should monitor whether the market is mispricing the company's core software growth potential relative to its interest-dependent earnings profile.
The current P/E ratio may lead to an overly optimistic assessment of the company's operational maturity. When adjusting for the significant interest income generated by the cash pile, the underlying software business appears to trade at a much higher valuation than the headline multiple suggests.
As reported in financial statements, Freshworks' ROIC has struggled to maintain positive territory, recently hitting -1.2% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital in its current growth phase.
The persistent negative ROIC highlights the difficulty of scaling the platform while maintaining high levels of stock-based compensation. Investors should monitor whether management can pivot toward more disciplined capital allocation to improve these returns as the company matures.
According to recent SEC filings, the company's DSO has remained relatively stable near 55 days, yet the significant fluctuations in DPO suggest that management is actively managing cash outflows to preserve liquidity rather than relying on inherent operational efficiency to drive working capital cycles.
The lack of a consistent CCC trend suggests that the company's cash conversion is highly sensitive to management's discretionary payment timing. This variability warrants further investigation into whether the company's supplier relationships are being leveraged to mask underlying cash flow volatility.
Based on the company's reported figures, the current ratio of 1.94 as of 2026Q1 provides a substantial liquidity buffer, which appears to insulate the firm from short-term operational shocks despite the ongoing challenges in achieving consistent GAAP profitability across its core business segments.
This liquidity position is a critical defensive asset that allows the company to navigate potential seat-count churn without immediate financing risks. However, the reliance on this cash for interest income suggests that the balance sheet is currently serving as a financial hedge rather than a growth engine.
Investors frequently misapply net income as a proxy for operational success, yet as reported in financial statements, this metric is heavily distorted by interest income, obscuring the true, often strained, profitability of the company's core software-as-a-service business model and its underlying operational leverage.
Analysts should prioritize operating margin and free cash flow excluding interest income to better gauge the company's fundamental health. Relying on net income risks ignoring the potential for a valuation trap if interest rates decline and the non-operating tailwinds dissipate.
Includes 30+ ratios · 12 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying FRSH stock.
Freshworks Inc.'s current P/E ratio is 16.5x. The historical average is 19.4x.
Freshworks Inc.'s current EV/EBITDA is 32.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 42.6x.
Freshworks Inc.'s return on equity (ROE) is 16.9%. The historical average is -2.7%.
Based on historical data, Freshworks Inc. is trading at a P/E of 16.5x. Compare with industry peers and growth rates for a complete picture.
Freshworks Inc. has 85.0% gross margin and 1.6% operating margin.
Freshworks Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.