HubSpot, Inc. (HUBS) DCF Valuation
Transparent DCF models put HubSpot, Inc. (HUBS)'s fair value in a range of $88.77 – $148.17 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $197.69 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $197.69, the market is pricing in roughly +9.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +57.2%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$197.69
Fair-Value Range
$88.77 – $148.17
Market-Implied Growth
+9.2%/yr
vs +57.2% 5Y actual
HUBS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $425.1M · 0.05B shares · net cash $619.9M
Estimated Fair Value
$148.17
-25.0% vs $197.69
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $197.69; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $181 | $190 | $200 | $212 | $227 |
| 9.0% | $157 | $163 | $170 | $178 | $188 |
| 10.0% | $139 | $143 | $148 | $154 | $160 |
| 11.0% | $125 | $128 | $131 | $135 | $140 |
| 12.0% | $113 | $116 | $118 | $121 | $124 |
About HubSpot, Inc.
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.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Yamini Rangan