Hubbell Incorporated (HUBB) Intrinsic Value & DCF Valuation
Electrical Equipment & Parts · NYSE
Current Price
$434.28
Intrinsic Value
$499.25
+13.0% margin of safety
What Is Hubbell Incorporated's Intrinsic Value?
As of 2026-10-27, the base-case DCF model estimates the intrinsic value of Hubbell Incorporated (HUBB) at $499.25 per share, compared with a market price of $434.28, a margin of safety of +13.0%. The base case assumes 9.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $412.29 to $598.46. 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 the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Hubbell Incorporated (HUBB) Undervalued?
At $434.28, HUBB trades about 13.0% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Brand Recognition and Trust
Hubbell's long-standing reputation for quality and reliability in the electrical equipment sector fosters customer loyalty. This established trust translates into repeat business and a preference for their products.
↑Diversified Product Portfolio
A broad range of electrical components and systems across various end markets reduces reliance on any single product or industry. This diversification provides resilience against sector-specific downturns.
↑Strong Distribution Network
Hubbell benefits from an extensive and established network of distributors and channel partners. This reach ensures product availability and efficient market penetration.
INVESTMENT RISKS
↓Economic Sensitivity
Demand for electrical equipment is closely tied to construction and infrastructure spending. Economic slowdowns or recessions can significantly impact sales and profitability.
↓Raw Material Price Volatility
Fluctuations in the cost of key raw materials like copper and aluminum can affect manufacturing costs and profit margins. Hedging strategies may not fully mitigate these risks.
↓Regulatory and Compliance Changes
Evolving safety standards, environmental regulations, and product certifications can necessitate costly product redesigns and compliance efforts.
Base case
HUBB base case valuation
Intrinsic Value
$499.25
Margin of safety
+13.0%
Expected annual return
+2.8%
Base case assumptions: 9.0% annual growth, 10.0% discount rate, 24.72x exit multiple, 5 year projection. Data as of 2026-10-27.
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, Inc. engages in the designing, manufacturing, and sale of electrical and electronic products for non-residential and residential construction, industrial, and utility applications. It operates through the Electrical Solutions and Utility Solutions segments. The Electrical Solutions segment manufactures and sells wiring and electrical, lighting fixtures, and controls for indoor and outdoor applications as well as specialty lighting and communications products. The Utility Solutions segment is involved in the design, manufacture, and sale of electrical distribution, transmission, substation, and telecommunications products. The company was founded by Harvey Hubbell II in 1888 and is headquartered in Shelton, CT.
Financial Metrics — HUBB Stock Valuation Data
Revenue/Share (TTM)
$124.64
FCF/Share (TTM)
$17.54
ROIC (TTM)
10.0%
ROE (TTM)
23.2%
P/FCF
24.7x
EV/EBITDA
17.4x
FCF Yield
4.04%
Debt/Equity
1.25x
On a trailing twelve-month basis, HUBB generates free cash flow per share of $17.54 alongside a ROIC of 10.0%, both central inputs for a DCF valuation. Its P/FCF ratio of 24.7x and FCF yield of 4.04% then frame how HUBB is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of HUBB?
Hubbell Incorporated currently generates $17.54 in free cash flow per share. At the current price of $434.28, 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 24.7x with a free cash flow yield of 4.04%. 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 ($17.54) 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 1.25x, 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 10.0% 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 1.25x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 17.4x, 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 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.