Hubbell Incorporated (HUBB) Intrinsic Value & DCF Valuation
Electrical Equipment & Parts · NYSE
Current Price
$493.62
Intrinsic Value
$624.72
+21.0% margin of safety
What Is Hubbell Incorporated's Intrinsic Value?
As of 2026-06-15, our base-case DCF model estimates the intrinsic value of Hubbell Incorporated (HUBB) at $624.72 per share, compared with a market price of $493.62, a margin of safety of +21.0%. The base case assumes 11.5% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $523.13 to $739.92. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Hubbell Incorporated (HUBB) Undervalued?
At $493.62, HUBB trades about 21.0% below our base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety we require before calling a stock undervalued.
COMPETITIVE MOAT
↑Strong Brand Recognition
Hubbell's long-standing reputation for quality and reliability in the electrical industry fosters customer loyalty. This brand equity allows for premium pricing and repeat business.
↑Diversified Product Portfolio
The company offers a wide range of electrical products, reducing reliance on any single segment. This diversification mitigates risks associated with specific market downturns.
↑Acquisition Strategy
Hubbell has a history of successful acquisitions, integrating complementary businesses to expand its market reach and technological capabilities. This inorganic growth strengthens its competitive position.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in raw material costs, such as copper and aluminum, can impact profit margins. The recent high oil prices could indirectly affect input costs.
↓Economic Sensitivity
Demand for electrical equipment is tied to construction and industrial activity. Economic slowdowns or recessions can significantly reduce sales and profitability.
↓Valuation Concerns
Despite operational momentum, high valuation can limit investor enthusiasm. Margin concerns, as noted in recent analysis, could also present headwinds.
Base case
HUBB base case valuation
Intrinsic Value
$624.72
Margin of safety
+21.0%
Expected annual return
+4.8%
Base case assumptions: 11.5% annual growth, 10.0% discount rate, 29x exit multiple, 5 year projection. Data as of 2026-06-15.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HUBB valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Hubbell Incorporated respond.
Open DCF Calculator for HUBBCompany Overview
Hubbell Incorporated, established in Shelton, Connecticut, in 1888, operates as a global enterprise specializing in the development, production, and distribution of a diverse array of electrical and electronic merchandise. The company organizes its operations into two principal divisions: Electrical Solutions and Utility Solutions. The Electrical Solutions division provides an extensive catalog of items, including standard and specialized wiring devices, foundational electrical components, connectivity and grounding solutions, various lighting fixtures, and other electrical apparatus. This segment also supplies components for natural gas distribution, alongside industrial control systems and communication technologies. Its offerings cater to industrial, commercial, institutional, and non-residential markets, with a strong presence in the oil and gas, and mining sectors. Clients typically include electrical contractors, maintenance staff, electricians, public utilities, and telecommunications providers. Products reach end-users through a network of electrical and industrial distributors, home improvement retailers, hardware stores, lighting showrooms, and specialized online platforms; bespoke application products are primarily distributed via wholesalers to contractors, industrial buyers, and original equipment manufacturers. Conversely, the Utility Solutions division focuses on crucial infrastructure components for power transmission, distribution, substations, and telecommunications. Its product lineup encompasses items such as surge arresters, insulators, connectors, anchors, bushings, and enclosures, in addition to advanced utility infrastructure technologies like smart metering systems, communication platforms, and protective control devices. This segment serves a clientele of distributors, as well as direct customers including public utilities, telecommunication firms, industrial corporations, and construction and engineering enterprises. Hubbell boasts a robust portfolio of well-known brands, among them Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, and Hot Box.
Financial Metrics — HUBB Stock Valuation Data
Revenue/Share (TTM)
$112.80
FCF/Share (TTM)
$17.11
ROIC (TTM)
13.7%
ROE (TTM)
24.4%
P/FCF
28.7x
EV/EBITDA
19.7x
FCF Yield
3.49%
Debt/Equity
0.72x
Based on trailing twelve-month data, HUBB shows a free cash flow per share of $17.11 and a ROIC of 13.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 28.7x and FCF yield of 3.49% are important context metrics when evaluating HUBB's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of HUBB?
Hubbell Incorporated currently generates $17.11 in free cash flow per share. At the current price of $493.62, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is HUBB undervalued?
HUBB trades at a P/FCF ratio of 28.7x with a free cash flow yield of 3.49%. This P/FCF is in a moderate range. However, whether HUBB is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value HUBB stock using DCF?
To perform a DCF valuation on Hubbell Incorporated: (1) Start with the trailing free cash flow per share ($17.11) 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 — with a debt-to-equity of 0.72x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to HUBB?
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 company will produce over the next 5-10 years, shaped by Electrical Equipment & Parts trends, then discounting those amounts to today's dollars. HUBB's ROIC of 13.7% shows moderate capital returns.
How does WACC affect HUBB stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HUBB, with a debt-to-equity ratio of 0.72x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 19.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See HUBB PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value HUBB with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.