Value
8.2/10data confidence 83%| Component | Sub-score |
|---|---|
| P/E | 7.9 |
| P/S | 8.3 |
| Fwd P/E | 9.0 |
| PEG | 9.9 |
| Analyst target | 6.0 |
- ▸Forward P/E: 11.8x
- ▸PEG: 0.52
- ▸Attractively valued
FRSH · Why this verdict
Why Freshworks (FRSH) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score6.2/10
ConfidenceHIGH
MacroRISK_OFF
Per-dimension breakdown
Quality
6.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 5.8 |
| ROA | 0.4 |
| Gross margin | 10.0 |
| Op margin | 0.0 |
| Net margin | 10.0 |
| Current ratio | 6.8 |
| FCF quality | 9.9 |
| Moat | 6.9 |
| Rule of 40 | 7.8 |
| Piotroski F | 8.9 |
- ▸Strong margins: 21%
- ▸Excellent cash conversion: 146% FCF/NI
- ▸Rule of 40: 47 (pass)
- ▸Strong Piotroski F-Score: 8/9
Growth
6.6/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 6.6 |
Momentum
3.8/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 7.1 |
| OBV | 1.0 |
| MA position | 6.0 |
| Volume | 0.5 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -6.3%/30d — confirmed downtrend
Sentiment
6.9/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.1 |
| Price target | 8.1 |
| erm sentiment | 5.3 |
- ▸Analyst upside: 24%
Insider
5.1/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.2 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
6.2/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.2 |
| quality rank | 7.4 |
| growth rank | 5.5 |
- ▸Attractive P/E vs peers
Technical
3.3/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 3.8 |
| support resistance | 4.5 |
| 52w position | 1.7 |
Risk (lower is worse)
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.4 |
| days to cover | 9.0 |
| volatility | 0.1 |
| put call | 9.1 |
| implied vol | 0.0 |
| beta | 7.6 |
| debt equity | 1.2 |
- ▸High IV: 89%
Catalyst
7.5/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
- ▸Strong earnings: 3B/0M
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (5)
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:51d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (4)
- MOMENTUM:3.8<4.5
- ASYMMETRY:0.5<1.5@spot
- DEATH_CROSS:HARD_BLOCK
- 8K_SERIOUS:2.05
Warning (0)
none
Reward-to-Risk
0.54
Upside
+8.2%
Downside
15.0%
Sizing output
AVOID
SetupRECOVERY — Death cross but MACD improving, RSI 57
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — MCap $2.6B<$5B
Investment implication
The F-path SELL output reflects an overall score of 3.9 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Value at 8.2) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:3.8<4.5, ASYMMETRY:0.5<1.5@spot, DEATH_CROSS:HARD_BLOCK) reinforce the read. Current asymmetry R:R is 0.54 — supplementary context, not the trigger for this path.
The strongest dimensions are Value at 8.2, Catalyst at 7.5, and Sentiment at 6.9; the weakest are Technical at 3.3, Momentum at 3.8, and Risk (lower is worse) at 4.6. The V9 engine flagged 4 failed gates, producing an asymmetric reward-to-risk of 0.54 and an engine sizing output of AVOID.