HUBS — Hubspot Inc
Snapshot dated September 28, 2026.
HubSpot Inc. operates a customer relationship management (CRM) platform that serves as an all-in-one software suite for marketing, sales, content management, and customer service teams. The company generates revenue primarily through tiered monthly and annual subscription fees for its various 'hubs,' including Marketing Hub, Sales Hub, and Service Hub. Its customer base consists largely of small-to-medium-sized businesses seeking integrated tools to manage their digital presence, though it has increasingly moved upmarket to support larger enterprises. HubSpot competes directly with major software platforms like Salesforce and Adobe, distinguishing itself through an inbound marketing methodology that prioritizes content creation over traditional advertising. Headquartered in Cambridge, Massachusetts, the company maintains a global footprint with offices across North America, Europe, and Asia, employing thousands of professionals dedicated to maintaining its software ecosystem.
Fair Value / Share
$302.80
Price on September 28, 2026
$212.02
Upside to fair value
42.82%
Margin of safety 30.0%
Upside is measured against what you pay; margin of safety is measured against what the business is worth.
Data by Equibles and SEC filings. Figures are as of September 28, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$212.02
Market Cap
$10,731,392,300
Net Income (TTM)
$146,854,000
Diluted Shares
50.6 million
EPS (TTM)
$2.90
Earnings Yield
1.37%
AI Analysis
With a stock price of $212.02 and an EPS (TTM) of $2.90, HubSpot Inc. currently presents an earnings yield of 1.37%. This figure sits significantly below the 4-5% annual return typically available from safe, guaranteed alternatives like bonds. Mechanically, this lower yield indicates that the current share price attaches a premium to every dollar of earnings, implying that the market anticipates substantial future growth in profitability to justify the current entry price. For the earnings yield to rise, the company would need to generate higher annual net income relative to its stock price, or the share price would need to decline. This single metric does not capture the company's long-term growth trajectory, market share expansion, or potential changes in its operational margins.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$130,738,000
Net Working Capital
-$374,466,000
Net Fixed Assets
$157,126,000
Invested Capital
-$217,340,000
Return on Capital
Capital-free operations
This business operates on negative invested capital — customers pay in advance, so the business funds itself rather than tying up capital. Combined with positive EBIT, that is the strongest possible outcome in this framework, not a missing result.
AI Analysis
For HubSpot (HUBS), the Return on Capital framework produces an EBIT of $130.7M and invested capital of -$217.3M. Because the invested capital is negative, a percentage-based return cannot be computed; however, this represents the strongest possible outcome under this framework. It signifies that the business requires no capital of its own to operate, effectively utilizing funds from customers or suppliers to run the business while still generating a positive profit. This indicates an efficient relationship between capital and operating income. While this result highlights the structure of the operating model, it is important to note that this measure does not account for industry-specific capital intensity, nor does it capture the impact of high reinvestment spending, which is common for growth-stage businesses and can temporarily suppress profitability metrics regardless of underlying operational efficiency.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| CRMSalesforce, Inc. | $8.7B | $218.9B | 25.1x |
| HUBSHubspot Inc | $130.7M | $9.8B | Above range for acquisition target |
| BRZEBraze, Inc. | -$111.4M | $2.5B | — |
Where HUBS sits: Above range for acquisition target — its own operating earnings are too thin relative to enterprise value for the multiple to carry a meaningful number.
What does “above range for acquisition target” mean?Hide the “above range for acquisition target” explanation
The multiple is not shown as a number: HUBS’s trailing operating earnings are so small relative to its enterprise value that dividing one by the other would produce a figure in the hundreds or thousands of x — arithmetically correct, but not a meaningful comparison, since a small change in one quarter’s operating income would swing it wildly without saying anything new about the business. The price here implies a bet on operating profit growing dramatically from a near-zero base, not a price you could sensibly compare to a peer’s multiple. By this measure alone — years of current operating earnings required to buy the whole business — a figure this far outside the meaningful range would flag the company as one an acquirer should not pay this price for, on today’s earnings.
Show the enterprise value bridge for each companyHide the enterprise value bridge
HUBS
Debt $0. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $236.9M of operating lease liabilities as of 2026-06-30 ($198.8M non-current, $38.1M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
CRM
Named as a competitor: Competes directly in CRM, sales automation, and marketing software across SMB and enterprise markets
Debt $39.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $2.5B of operating lease liabilities as of 2026-07-31 ($1.9B non-current, $531M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
BRZE
Named as a competitor: Competes in customer engagement and automated marketing communication platforms
Debt $4.2M. This is reported total debt, including $15.3M of finance lease obligations ($4.2M + $11.1M in the filing). Finance leases are counted as debt because they are a borrowing in substance — the company has committed to fixed payments for an asset it effectively owns.
Operating earnings — HUBS
AI Analysis
Hubspot (HUBS) has an enterprise value of $9.8B and operating earnings of $130.7M. Its Acquirer's Multiple is above the range for an acquisition target, meaning its operating earnings are too thin relative to its enterprise value for the measure to carry a meaningful numeric result; this situation reflects a business price that implies a bet on operating profit growing dramatically from a near-zero base. Competitor Salesforce (CRM) holds an enterprise value of $218.9B and operating earnings of $8.7B, resulting in an Acquirer's Multiple of 25.1x. Breeze (BRZE) has an enterprise value of $2.5B and operating earnings of -$111.4M; it is losing money right now, so no multiple can be calculated for it. Comparing the available figures, CRM represents the lowest calculated multiple. The computed comparison for HUBS is: Above range for acquisition target — its own operating earnings are too thin relative to enterprise value for the multiple to carry a meaningful number. Closing this gap would require either significant operating profit growth or a structural shift in enterprise value.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong, with the business recording both positive net income and free cash flow relative to its total assets. The measurement is supported by cash flow from operations that significantly exceeds accounting profit.
- Return on Assets reached 1.19%.
- Free Cash Flow to Total Assets is 18.36%.
- The Accruals ratio of 16.57 indicates that cash generation is much higher than reported net income.
A score of 3/3 indicates that current operations are generating surplus cash, a result that would only change if the cash conversion of earnings were to deteriorate or if the company returned to net losses.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
1/3
This section is Weak, as the company is currently issuing new shares and has not seen an increase in its current ratio over the last year. However, the business remains debt-free, maintaining its leverage at zero.
- Long-term debt remained flat at 0.
- The current ratio was unchanged year over year at 1.67.
- Diluted shares outstanding increased to 53.2 million from 51.8 million a year earlier.
The score of 1/3 reflects ongoing shareholder dilution and stagnant liquidity, which would require a reduction in share issuance or an increase in current assets relative to liabilities to improve.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
FailNet Dilution (annual diluted weighted-average shares, this year vs last)
FailSection 3
Recent Operational Improvements
3/4
This section is Strong, driven by improvements in capital efficiency and asset utilization despite a slight compression in gross margins. The company is generating more revenue and cash flow per dollar of assets than it did in the prior period.
- Return on Assets improved from 0.12% to 1.19%.
- Free Cash Flow to Total Assets rose from 14.77% to 18.36%.
- Gross Margin declined slightly from 85.03% to 83.76%.
- Asset Turnover increased from 0.69 to 0.81.
A score of 3/4 suggests the business is becoming more efficient, though a reversal in asset turnover or further margin compression would lower this reading.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
The total score is 7/10, a result that reflects strong current profitability and operational gains tempered by weaknesses in share dilution and liquidity trends. This score suggests that the company's financial health is generally stable, indicating that any perceived cheapness in the stock is less likely to be a result of fundamental business deterioration. While the stability of the balance sheet is pressured by share issuance, the core business is increasingly efficient at converting assets into cash and revenue.
- Accruals ratio of 16.57 shows cash flow remains significantly ahead of net income.
- Asset Turnover increased to 0.81 from 0.69, showing higher revenue efficiency.
- Net Dilution rose as share counts increased from 51.8 million to 53.2 million shares.
- Current Ratio remained flat at 1.67, missing the requirement for year-over-year improvement.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$797.5M
+ After-Tax Interest Expense
$545.5K
= Unlevered Free Cash Flow
$798M
Business value (10-year DCF)
PV of Years 1–10
$6.8B
PV of Terminal Value
$7.5B
= Business Value
$14.4B
Terminal value share
52.35%
Business value → share value
Intrinsic Value (business)
$14.4B
+ Cash & Equivalents
$958.3M
− Debt
$0
= Shareholders' Value
$15.3B
÷ Diluted Shares
50.6 million
= Fair Value / Share
$302.80
Divided by 50.6 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$798M
Trailing twelve months.
FY2023 $317.3M · FY2024 $560.7M · FY2025 $707.6M
Growth rate (yrs 1–10)
11%
Terminal growth (after yr 10)
3%
AI Analysis
HubSpot’s valuation is anchored by a 12% discount rate, applying a mid-risk profile that balances the company’s entrenched software market position against persistent tech competition. The forecast uses a Year-1 FCF of $798M, applying an 11% annual growth rate based on historical subscription revenue expansion. The terminal growth rate is fixed at 3% for all companies in this model, establishing a conservative baseline for long-term output. To determine fair value, the model calculates the present value of future cash flows, adds $958.3M in cash, and subtracts $0 in debt to find the equity value of $15.3B. Dividing by 50.6 million shares yields a fair value per share of $302.80. Compared to the current price of $212.02, the upside to fair value is 42.82%. The margin of safety—the buffer this estimate provides against calculation error—is 30.0%. Because the fair value is a projection of future cash, the result is most sensitive to the 11% growth rate; if the company’s ability to generate cash deviates from this trajectory, the estimate would shift significantly.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
1.37% vs ~4-5% bond-yield benchmark
Return on Capital
Capital-free operations — negative invested capital, positive EBIT
Acquirer's Multiple
Above range for acquisition target — its own operating earnings are too thin relative to enterprise value for the multiple to carry a meaningful number.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
42.82% upside to fair value
These five measures capture a distinct tension between the company's operational efficiency and its current market pricing. The Return on Capital indicates a highly efficient, capital-light business model, while the FS-Score of 7/10 reflects a generally stable financial position. Conversely, the Earnings Yield of 1.37% and the Acquirer's Multiple result—which is above range for an acquisition target because operating earnings are too thin relative to enterprise value—suggest the company's valuation metrics currently sit outside of typical ranges for established profit-generating businesses. While the Intrinsic Value model calculates a 42.82% upside to fair value and a 30.0% margin of safety, this projection relies heavily on assumptions about future growth and profitability that are not yet fully reflected in current earnings. The overall picture is mixed because the metrics measuring historical efficiency contrast sharply with metrics measuring current profitability and valuation. A shift in the Earnings Yield would most significantly alter this assessment, as that figure currently highlights the gap between the company's price and its immediate cash-generating output.
Comments
Notes from readers on HUBS — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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