Is HubSpot, Inc. overvalued or undervalued?

As of 8 May 2025, HubSpot, Inc. has moved from an attractive to a risky valuation grade, indicating a significant shift in its financial outlook. The company is currently considered overvalued, particularly given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 16.30, an EV to EBITDA of 578.84, and a ROCE of -18.39%, all of which highlight the company's challenges in generating returns.
In comparison to its peers, HubSpot's valuation appears concerning. For instance, Palantir Technologies, Inc. has a P/E of -134.38, while Veeva Systems, Inc. maintains a fair valuation with a P/E of 59.01. The stark contrast in valuation metrics underscores the risks associated with HubSpot, especially as it has underperformed relative to the S&P 500 over the past year, with a return of -7.25% compared to the index's 10.26%.