FRSH (Freshworks) Moat Score: 5/10 (As of Aug. 20, 2026)

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FRSH Freshworks Inc FRSH
79 GF Score
Price $13.07
GF Value $19.43
Valuation Possible Value Trap
! 7 Warning Signs
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What is Freshworks Moat Score?

Freshworks FRSH 79 Moat Score is 5 as of Aug. 20, 2026. GuruFocus rates FRSH with a GF Score™ of 79/100 and a GF Value™ of $19.43 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,831 Software companies, Freshworks ranks better than 94.77% on this metric.

Freshworks has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Freshworks has Narrow Moat: Freshworks Inc has a solid narrow moat due to its strong brand and customer loyalty in the software industry. It benefits from network effects and customer switching costs, but faces intense competition and lacks significant regulatory barriers.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Freshworks might have Narrow Moat - Solid narrow moat.

Freshworks  (NAS:FRSH) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Freshworks Moat Score Related Terms

FRSH vs KC, ADEA, BTDR: Moat Score Comparison

For the Software - Application subindustry, Freshworks's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Freshworks's Moat Score distribution charts can be found below:

* The bar in red indicates where Freshworks's Moat Score falls into.


FRSH
79GF Score
Freshworks Inc FRSH
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Freshworks (FRSH) has a Moat Score of 5 as of Aug. 20, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Freshworks ranks #148 out of 2831 companies in the Software industry, placing it in the top 5.2%.
Is Freshworks' Moat Score too high?
Freshworks' current Moat Score is 5. Based on the distribution chart, Freshworks ranks #148 out of 2831 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Freshworks has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freshworks' Moat Score compare to KC and ADEA?
According to the Software industry distribution chart, Freshworks ranks #148 out of 2831 companies for Moat Score. This places Freshworks in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Freshworks's current Moat Score is 5. 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 (FRSH) is currently considered Possible Value Trap. The stock's GF Value™ is $19.43, compared to a current price of $13.07 — trading 32.7% below its estimated fair value. The current Moat Score is 5. Freshworks' overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Freshworks (FRSH), the current Moat Score is 5 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 (FRSH) Overvalued in 2026?

Based on GuruFocus' analysis, Freshworks stock appears to be undervalued. The current stock price of $13.07 is trading 32.7% below its estimated GF Value™ of $19.43. GuruFocus considers Freshworks to be Possible Value Trap.

Key valuation signals for FRSH:

  • Moat Score: 5
  • GF Value™: $19.43 vs. price of $13.07 (32.7% below fair value)
  • GF Score™: 79/100 with 7 warning signs

No single metric tells the full story. See the FRSH 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.
79GF Score

Get the complete analysis for FRSH

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

$13.07
Price
$19.43
GF Value