DCF Valuation
Base-case fair value
$555.40
Intrinsic $740.53 · 25% MOS
Current price: $176.71
Base-case summary
Our base-case DCF for Hubspot Inc (HUBS) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 28.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $743M in trailing free cash flow, this produces an intrinsic value of $740.53 per share. A 25% safety margin gives a fair value of $555.40, suggesting the stock is currently 214% undervalued against the $176.71 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$743M
Cash & equivalents
$1.7B
Total debt
$247M
Shares outstanding
53M