Is HubSpot, Inc. overvalued or undervalued?

Sep 20 2025 06:09 PM IST
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As of May 8, 2025, HubSpot, Inc. is considered overvalued with a risky valuation grade, highlighted by a high Price to Book Value of 16.30, an EV to Sales ratio of 11.40, negative returns on capital and equity, and a year-to-date decline of -26.36%, contrasting with the S&P 500's gain of 12.22%.
As of 8 May 2025, HubSpot, Inc. has moved from a fair to a risky valuation grade, indicating a shift towards being overvalued. The company is currently assessed as overvalued, particularly given its high Price to Book Value of 16.30 and an EV to Sales ratio of 11.40, which are significantly elevated compared to its peers. Additionally, the negative ROCE of -18.39% and ROE of -0.42% further underscore the company's struggles in generating returns.

In comparison to its peers, HubSpot's valuation metrics are starkly higher; for instance, Veeva Systems, Inc. has a P/E ratio of 55.64, while Electronic Arts, Inc. stands at 38.67, both indicating more reasonable valuations within the industry. Despite a strong 3-year return of 75.99%, HubSpot's year-to-date performance shows a decline of -26.36%, contrasting sharply with the S&P 500's 12.22% gain, suggesting that investor sentiment may be turning against the stock.
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