Electrical Equipment & Parts · NYSE
Current Price
$545.93
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Hubbell Incorporated with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical Solution and Utility Solution. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented Internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, industrial firms, and construction and engineering firms. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.
ROIC (TTM)
13.8%
ROE (TTM)
25.0%
FCF Yield
3.01%
Based on trailing twelve-month data, HUBB shows a free cash flow per share of N/A and a ROIC of 13.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.01% are important context metrics when evaluating HUBB's stock valuation relative to peers.
The intrinsic value of HUBB depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether HUBB is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $545.93. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Hubbell Incorporated: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Electrical Equipment & Parts industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HUBB's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Hubbell Incorporated, this means projecting how much free cash flow the Electrical Equipment & Parts will produce over the next 5-10 years, then discounting those amounts to today's dollars. HUBB's ROIC of 13.8% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HUBB, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
