Freshworks (FRSH): A bull case theory

We came across a bullish thesis about Freshworks over the Substack of Hidden Gems Research. From July 14th, Freshworks' share was traded at $ 14.12. Frsh's striker P/E was 27.69 after Yahoo Finance.

A close-up of a server that carries out a cloud native platform that symbolizes the performance of the SaaS business area software-as-a-service (SaaS).

Freshworks, a software business of $ 4 billion, acts after a management transition with a steep discount on the current value to be added. The company's share has dropped by ~ 30% since its founder and CEO Girish Mathhrubootham has resigned to concentrate on product development. Nevertheless, the new CEO, Dennis Woodside, has a strong track record in various leadership roles, including the President of Impossible Foods and COO from Dropbox. The experience and management of Woodside seem to be underestimated by the market and offers an investment option.

The company's software portfolio has strong product ratings and gains more medium and large company offers, even though they compete with large official owners such as ServiceNow, Zendesk and Hubspot. The focus of freshworks on user -friendliness, affordability and customer satisfaction is ideal in a close software expenditure environment. In recent years, the company has consistently expected the analysts' expectations and defeated the estimates of the upper and lower end results. This trend can lead to a renewed assessment of the share, since investors' trust improves after the management transition.

With a steep discount on the EV/NTM turnover, Freshworks acts several times, ~ 40% below the median and ~ 90% under the industry of several growth of an integrated basis. A reduced cash flow model implies that the shares today have a value of ~ 40% below the current value. With strong growth and Margin profile, newer AI products and functions can contribute to the future upward trend. The company's instructions have already been endangered, which made the current stock price an attractive entry point with a limited downward risk. In the best case, the share could significantly re-rate and offer an extraordinary risk/reward sheet for investors.

We used to cover A bullish thesis On ServiceNow, Inc. of Francesco Ferrari in June 2025, which highlighted the strong free cash flow of the company, the scalable margins and the long -term composite potential. The company's share price has switched off by about 3.46% since our cover. This is because evaluation concerns predominated short -term performance. The thesis is still how long -term the basics remain intact. The author of the FreshWorks thesis has a similar view, but emphasizes an underestimated execution in a reduced SaaS colleague.