See our latest analysis for HubSpot.
After hitting new highs earlier this year, HubSpot’s momentum has shifted sharply, with a 1-year total shareholder return of -51.44% reflecting both shorter-term share price weakness and more cautious sentiment from investors. Despite this drawdown, the stock still shows a 23% total return over three years, highlighting the potential for longer-term recovery if fundamentals improve.
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With shares trading well below recent highs and analysts’ price targets, the key question is whether HubSpot is an undervalued opportunity that investors are overlooking, or if the market is correctly factoring in all that lies ahead.
Most Popular Narrative: 40.2% Undervalued
Compared to HubSpot’s last close of $355.35, the most widely followed narrative points to a fair value of $593.90, suggesting significant upside potential if its future prospects are realized.
Ongoing movement upmarket into larger enterprise customers, combined with a seat-based pricing model and cross-sell of premium platform capabilities (Core Seat, Smart CRM), is leading to larger deals and higher gross margins. This should boost earnings power as operating leverage increases.
Want to know what’s driving this lofty price target? The secret lies in a bold set of assumptions about how HubSpot will transform customer value, ramp up international growth, and deliver margin expansion for years to come. Find out which key growth expectations make this narrative tick. Only the full narrative reveals the ambitious figures behind this valuation.
Result: Fair Value of $593.90 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, analysts caution that slowing revenue growth or mounting competition from new AI-driven platforms could threaten HubSpot’s rebound thesis if these risks intensify.
Find out about the key risks to this HubSpot narrative.
Build Your Own HubSpot Narrative
If you’d rather chart your own course through the numbers or think there’s a different story to tell, you can build your own view in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding HubSpot.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if HubSpot might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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