Freshworks (STU:7DF) EV-to-OCF: 11.33 (As of Aug. 20, 2026) — 48% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

STU:7DF Freshworks Inc STU:7DF
77 GF Score
Price €11.17
GF Value €16.61
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Freshworks EV-to-OCF?

Freshworks STU:7DF +1.87% 77 EV-to-OCF is 11.33 as of Aug. 20, 2026, which is 48% below its 10-year median of 21.70. GuruFocus rates STU:7DF with a GF Score™ of 77/100 and a GF Value™ of €16.61 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,877 Software companies, Freshworks ranks worse than 62.77% on this metric.

EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Freshworks's Enterprise Value is €2,402.2 Mil. Freshworks's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €212.1 Mil. Therefore, Freshworks's EV-to-OCF for today is 11.33.

The historical rank and industry rank for Freshworks's EV-to-OCF or its related term are showing as below:

STU:7DF' s EV-to-OCF Range Over the Past 10 Years
Min: -1489.69   Med: 21.7   Max: 824.25
Current: 11.27

During the past 7 years, the highest EV-to-OCF of Freshworks was 824.25. The lowest was -1489.69. And the median was 21.70.

STU:7DF's EV-to-OCF is ranked worse than
62.77% of 2877 companies
in the Software industry
Industry Median: 7.02 vs STU:7DF: 11.27

EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

As of today (2026-08-20), Freshworks's stock price is €11.17. Freshworks's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was €0.547. Therefore, Freshworks's PE Ratio (TTM) for today is 20.42.


Freshworks  (STU:7DF) EV-to-OCF Explanation

EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Freshworks's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=11.17/0.547
=20.42

Freshworks's share price for today is €11.17.
Freshworks's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €0.547.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Freshworks EV-to-OCF Related Terms


Freshworks EV-to-OCF Historical Data

* Premium members only.

The historical data trend for Freshworks's EV-to-OCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Freshworks EV-to-OCF Chart

Freshworks Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-OCF
Get a 7-Day Free Trial 510.75 -1,243.57 67.43 24.11 11.28

Freshworks Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-OCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.30 11.48 11.28 6.08 8.23

STU:7DF vs KC, ADEA, BTDR: EV-to-OCF Comparison

For the Software - Application subindustry, Freshworks's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Freshworks EV-to-OCF vs Software Industry

For the Software industry and Technology sector, Freshworks's EV-to-OCF distribution charts can be found below:

* The bar in red indicates where Freshworks's EV-to-OCF falls into.


STU:7DF
77GF Score
Freshworks Inc STU:7DF
EV-to-OCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Freshworks EV-to-OCF Calculation

Freshworks's EV-to-OCF for today is calculated as:

EV-to-OCF=Enterprise Value (Today)/Cash Flow from Operations (TTM)
=2402.165/212.075
=11.33

Freshworks's current Enterprise Value is €2,402.2 Mil.
Freshworks's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €212.1 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-OCF →
What does a EV-to-OCF of 11.33 mean?
Freshworks (STU:7DF) has a EV-to-OCF of 11.33 as of Aug. 20, 2026. This is 48% below median its historical median of 21.70. According to the industry distribution chart, Freshworks ranks #1806 out of 2877 companies in the Software industry, placing it in the top 62.8%.
Is Freshworks' EV-to-OCF too high?
Freshworks' current EV-to-OCF of 11.33 is 48% below median its 10-year median of 21.70. The Software industry median EV-to-OCF is 7.02. Freshworks' value of 11.33 is 61.4% above this industry median. Based on the distribution chart, Freshworks ranks #1806 out of 2877 companies in the Software industry, which is below the industry midpoint. Overall, Freshworks has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freshworks' EV-to-OCF compare to KC and ADEA?
According to the Software industry distribution chart, Freshworks ranks #1806 out of 2877 companies for EV-to-OCF. This places Freshworks in the lower half of its industry. The industry median EV-to-OCF is 7.02. Freshworks' value of 11.33 is 61.4% above this benchmark. While the company's 10-year median is 21.70 vs. the industry median of 7.02, Freshworks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Software company?
The median EV-to-OCF among Software companies is 7.02, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Freshworks's current EV-to-OCF of 11.33 is 61.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 7.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freshworks's current EV-to-OCF is 11.33, which is 48% below median its own 10-year median of 21.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freshworks stock overvalued right now?
Based on GuruFocus' analysis, Freshworks (STU:7DF) is currently considered Possible Value Trap. The stock's GF Value™ is €16.61, compared to a current price of €11.17 — trading 32.8% below its estimated fair value. The current EV-to-OCF is 11.33, which is 48% below median its 10-year median of 21.70 and 61.4% above the Software industry median of 7.02. Freshworks' overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Freshworks (STU:7DF), the current EV-to-OCF is 11.33 as of Aug. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Freshworks (STU:7DF) Overvalued in 2026?

Based on GuruFocus' analysis, Freshworks stock appears to be undervalued. The current stock price of €11.17 is trading 32.8% below its estimated GF Value™ of €16.61. GuruFocus considers Freshworks to be Possible Value Trap.

Key valuation signals for STU:7DF:

  • EV-to-OCF: 11.33 (48% below median its 10-year median of 21.70)
  • GF Value™: €16.61 vs. price of €11.17 (32.8% below fair value)
  • GF Score™: 77/100 with 7 warning signs
  • Industry Position: 61.4% above the Software median (#1806 of 2877)

No single metric tells the full story. See the STU:7DF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Freshworks Business Description

Address 2950 South Delaware Street, Suite 201, San Mateo, CA, USA, 94403
Freshworks Inc provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. It offers solutions that serve the needs of users in the CS and ITSM categories and has also expanded its offering with Sales and Marketing automation products. These product offerings enable organizations to acquire, engage, and serve their customers and employees. The group derives revenue from North America, Europe, the Middle East and Africa, Asia Pacific, and Other regions. It derives maximum revenue from North America.
77GF Score

Get the complete analysis for STU:7DF

EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€11.17
Price
€16.61
GF Value