TGM's two-stage DCF values Freshworks Inc. (FRSH) between $11.73 and $18.88 depending on assumptions, with a base case of $14.88. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (capped at 18%)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$14.23 is justified only if free cash flow grows about +16.7% a year (fading to 2.5% long-run) at a 8.6% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 9.6% | $11.73 |
| Base case | 18.0%/yr | 8.6% | $14.88 |
| Optimistic | 20.0%/yr | 7.6% | $18.88 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $28.47 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$14.23
Market-Implied Growth
+16.7%/yr
vs +24.0% 5Y actual
Model Scenario Range
$11.73 – $18.88
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for FRSH (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $111.9M · 0.28B shares · net cash $569.8M
Estimated Fair Value
$14.88
+4.5% vs $14.23
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $14.23; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $18.16 | $19.70 | $21.63 | $24.08 | $27.33 |
| 7.6% | $15.34 | $16.36 | $17.58 | $19.07 | $20.92 |
| 8.6% | $13.32 | $14.04 | $14.88 | $15.86 | $17.04 |
| 9.6% | $11.81 | $12.34 | $12.94 | $13.63 | $14.44 |
| 10.6% | $10.63 | $11.03 | $11.49 | $11.99 | $12.58 |
