HubSpot, Inc. (HUBS) Intrinsic Value & DCF Valuation
Software - Application · NYSE
Current Price
$187.98
Intrinsic Value
$368.61
+49.0% margin of safety
What Is HubSpot, Inc.'s Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of HubSpot, Inc. (HUBS) at $368.61 per share, compared with a market price of $187.98, a margin of safety of +49.0%. The base case assumes 18.4% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $285.73 to $463.51. 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 HubSpot, Inc. (HUBS) Undervalued?
At the current price of $187.98, HUBS trades well below our base-case intrinsic value estimate, a margin of safety above 30%. By this model the stock looks undervalued, but verify the growth assumptions match your own view before acting.
COMPETITIVE MOAT
↑Integrated Platform Advantage
HubSpot's unified CRM platform offers a seamless experience across marketing, sales, and service. This integration fosters customer stickiness and makes switching to competitors difficult.
↑Strong Brand Recognition
HubSpot has built a well-respected brand in the SMB software space. This recognition attracts new customers and supports premium pricing power.
↑Network Effects in Ecosystem
The growing ecosystem of apps and integrations on HubSpot's platform creates network effects. More users and developers attract more users and developers, strengthening the platform.
INVESTMENT RISKS
↓Intense Competition
The CRM and marketing automation market is highly competitive with large players and nimble startups. HubSpot faces constant pressure to innovate and maintain market share.
↓Customer Churn
While sticky, customers can still churn if they outgrow HubSpot's offerings or find more cost-effective solutions. Retention strategies are crucial.
↓Dependence on SMB Market
HubSpot's primary focus on small and medium-sized businesses makes it susceptible to economic downturns impacting this segment. Growth may be capped by this focus.
Base case
HUBS base case valuation
Intrinsic Value
$368.61
Margin of safety
+49.0%
Expected annual return
+14.4%
Base case assumptions: 18.4% annual growth, 10.0% discount rate, 14x exit multiple, 5 year projection. Data as of 2026-06-12.
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 HUBS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for HubSpot, Inc. respond.
Open DCF Calculator for HUBSCompany Overview
HubSpot, Inc. offers an expansive, cloud-hosted customer relationship management (CRM) platform, catering to businesses across the Americas, Europe, and the Asia Pacific. This integrated system features fundamental modules for marketing, sales, customer service, and content management. Additionally, the platform is equipped with a wide array of specialized tools to optimize operations, such as search engine optimization (SEO), blogging, website management, instant messaging, AI-driven chatbots, social media management, marketing automation, email communications, and predictive lead scoring. It further includes functionalities for boosting sales productivity, creating knowledge bases, facilitating e-commerce, directing conversations, hosting videos, and managing ticketing and helpdesk inquiries. Customer satisfaction is also addressed through NPS surveys, complemented by comprehensive analytics and reporting features. Beyond the software, HubSpot offers professional services to educate and train clients on maximizing the CRM's potential, alongside accessible support options via phone, email, and live chat. The company focuses its services on mid-market business-to-business (B2B) organizations. Incorporated in 2005, HubSpot, Inc. has its main offices located in Cambridge, Massachusetts.
Financial Metrics — HUBS Stock Valuation Data
Revenue/Share (TTM)
$62.83
FCF/Share (TTM)
$13.57
ROIC (TTM)
2.3%
ROE (TTM)
5.0%
P/FCF
13.5x
EV/EBITDA
34.1x
FCF Yield
7.40%
Debt/Equity
0.12x
Based on trailing twelve-month data, HUBS shows a free cash flow per share of $13.57 and a ROIC of 2.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 13.5x and FCF yield of 7.40% are important context metrics when evaluating HUBS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of HUBS?
HubSpot, Inc. currently generates $13.57 in free cash flow per share. At the current price of $187.98, 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 HUBS undervalued?
HUBS trades at a P/FCF ratio of 13.5x with a free cash flow yield of 7.40%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether HUBS 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 HUBS stock using DCF?
To perform a DCF valuation on HubSpot, Inc.: (1) Start with the trailing free cash flow per share ($13.57) as the base, (2) project future FCF growth over 5-10 years based on Software - Application industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HUBS's risk profile — with a debt-to-equity of 0.12x, 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 HUBS?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For HubSpot, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Software - Application trends, then discounting those amounts to today's dollars. HUBS's ROIC of 2.3% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect HUBS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HUBS, with a debt-to-equity ratio of 0.12x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 34.1x, 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 HUBS 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 Technology valuationsDCF and P/E value HUBS with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.