Hubbell Incorporated (HUBB) Stock Valuation — PE Analysis
Electrical Equipment & Parts · NYSE
Current Price
$476.89
PE Ratio (TTM)
28.0x
Intrinsic Value
$602.27
+20.8% margin of safety
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 PE valuation
A base case PE valuation for HUBB estimates a fair value of about $602.27 per share, against a current price of $476.89. The model assumes 11.6% annual earnings growth, a 28x target PE multiple, and a 10% discount rate.
Intrinsic Value
$602.27
Margin of safety
+20.8%
Expected annual return
+4.8%
Base case assumptions: 11.6% annual earnings growth, 28x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HUBB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Hubbell Incorporated respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
28.0x
PEG Ratio
2.16
Earnings Yield
3.57%
ROE (TTM)
24.4%
Revenue/Share (TTM)
$112.80
Dividend Yield
1.17%
Debt/Equity
0.72x
Frequently Asked Questions
What is the PE ratio of HUBB?
The trailing twelve-month PE ratio of HUBB reflects how much investors pay per dollar of Hubbell Incorporated's earnings. This metric is most useful when compared to Electrical Equipment & Parts peers and the company's own historical range.
Is HUBB overvalued based on PE ratio?
HUBB's PE of 28.0x combined with a PEG ratio of 2.16 provides a growth-adjusted perspective. A PEG above 2.0 suggests HUBB may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Electrical Equipment & Parts, a DCF analysis may be more appropriate.
How do I value HUBB stock using PE ratio?
To value Hubbell Incorporated using PE: (1) Compare the current PE (28.0x) against the Electrical Equipment & Parts median to assess relative pricing, (2) check the PEG ratio (2.16) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of HUBB?
HUBB's PEG ratio is 2.16, calculated by dividing the PE ratio (28.0x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HUBB stock valuation?
PE ratio gives a quick relative read — how HUBB is priced versus Electrical Equipment & Parts peers. DCF provides an absolute value based on projected free cash flows. For HUBB, with a strong ROE of 24.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See HUBB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value HUBB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.