HubSpot, Inc. (HUBS) Stock Valuation — PE Analysis
Software - Application · NYSE
Current Price
$216.95
PE Ratio (TTM)
78.0x
Intrinsic Value
$188.36
-15.2% margin of safety
COMPETITIVE MOAT
↑Integrated CRM Platform
HubSpot's unified platform offers a seamless customer experience across sales, marketing, and service. This integration creates significant switching costs for businesses invested in its ecosystem.
↑Strong SMB Network Effects
As more small and medium-sized businesses adopt HubSpot, the value of its platform increases for all users. This network effect fosters customer loyalty and organic growth.
↑AI-Powered Product Innovation
HubSpot's deep partnership with OpenAI and foundational AI product releases enhance user outcomes. This continuous innovation drives value and differentiates its offerings.
INVESTMENT RISKS
↓Valuation Concerns Amidst Competition
Despite strong cash flow and AI adoption, the company's valuation may be challenged by intense competition and market saturation. Sustaining growth at current multiples requires continued innovation and market share gains.
↓Execution of AI Strategy
While AI integration is a strength, the successful and widespread adoption of these new AI-powered features by SMBs is critical. Any missteps in execution could hinder ROI realization.
↓Customer Concentration Risk
While not explicitly stated, a significant reliance on a large number of smaller customers could still pose a risk if churn rates increase unexpectedly within the SMB segment.
Base case
HUBS base case PE valuation
A base case PE valuation for HUBS estimates a fair value of about $188.36 per share, against a current price of $216.95. The model assumes 13.9% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$188.36
Margin of safety
-15.2%
Expected annual return
-2.8%
Base case assumptions: 13.9% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
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 HUBS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for HubSpot, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
78.0x
PEG Ratio
0.01
Earnings Yield
1.34%
ROE (TTM)
7.8%
Revenue/Share (TTM)
$68.20
Debt/Equity
0.14x
Frequently Asked Questions
What is the PE ratio of HUBS?
The trailing twelve-month PE ratio of HUBS reflects how much investors pay per dollar of HubSpot, Inc.'s earnings. This metric is most useful when compared to Software - Application peers and the company's own historical range.
Is HUBS overvalued based on PE ratio?
HUBS's PE of 78.0x combined with a PEG ratio of 0.01 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Application, a DCF analysis may be more appropriate.
How do I value HUBS stock using PE ratio?
To value HubSpot, Inc. using PE: (1) Compare the current PE (78.0x) against the Software - Application median to assess relative pricing, (2) check the PEG ratio (0.01) 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 HUBS?
HUBS's PEG ratio is 0.01, calculated by dividing the PE ratio (78.0x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HUBS stock valuation?
PE ratio gives a quick relative read — how HUBS is priced versus Software - Application peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 HUBS 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 Technology valuationsP/E and DCF value HUBS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.