WallStSmart

Freshworks Inc (FRSH)vsServiceNow Inc (NOW)

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Smart Verdict

WallStSmart Research — data-driven comparison

ServiceNow Inc generates 1607% more annual revenue ($15.43B vs $903.87M). FRSH leads profitability with a 20.5% profit margin vs 9.4%. FRSH appears more attractively valued with a PEG of 0.63. FRSH earns a higher WallStSmart Score of 60/100 (C).

FRSH

Buy

60

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 8.0Quality: 6.0
Piotroski: 5/9Altman Z: -0.93

NOW

Buy

55

out of 100

Grade: C-

Growth: 6.7Profit: 6.5Value: 6.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRSHUndervalued (+61.6%)

Margin of Safety

+61.6%

Fair Value

$18.99

Current Price

$12.11

$6.88 discount

UndervaluedFair: $18.99Overvalued
NOWUndervalued (+83.7%)

Margin of Safety

+83.7%

Fair Value

$643.99

Current Price

$102.36

$541.63 discount

UndervaluedFair: $643.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRSH4 strengths · Avg: 8.8/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$109.11B9/10

Large-cap with strong market position

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

Areas to Watch

FRSH2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
-0.932/10

Distress zone — elevated risk

NOW4 concerns · Avg: 3.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
75.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FRSH

The strongest argument for FRSH centers on Debt/Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 20.5% and operating margin at 5.5%. Revenue growth of 16.0% demonstrates continued momentum.

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 20.5% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.

Bear Case : FRSH

The primary concerns for FRSH are EPS Growth, Altman Z-Score.

Bear Case : NOW

The primary concerns for NOW are Price/Book, Altman Z-Score, Piotroski F-Score. A P/E of 75.6x leaves little room for execution misses.

Key Dynamics to Monitor

NOW carries more volatility with a beta of 0.99 — expect wider price swings.

NOW is growing revenue faster at 20.5% — sustainability is the question.

NOW generates stronger free cash flow (473M), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FRSH scores higher overall (60/100 vs 55/100), backed by strong 20.5% margins and 16.0% revenue growth. NOW offers better value entry with a 83.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Freshworks Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Papa Murphy's Holdings, Inc. owns, operates and franchises Take? The company is headquartered in Vancouver, Washington.

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ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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