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HubSpot’s share price has fallen sharply over the past few years, yet the stock still screens as expensive on market multiples and earns a low value score. This sets up a clear tension between a beaten down share price and a valuation profile that does not look like an obvious bargain.
Over the past 5 years, HubSpot has delivered a total return that is down 67.4%, which means long term holders have seen substantial value erode even before considering today’s valuation.
The launch of AI focused tools such as Agent Hub and Agent Builder can support expectations for continued growth. At the same time, recent pushback on data usage and privacy highlights governance and trust risks that may weigh on what investors are willing to pay for the stock.
With a value score of 2 out of 6, HubSpot currently leans expensive on the broader valuation checks rather than standing out as a clear bargain.
For investors, the debate is whether HubSpot’s current price fairly reflects its growth potential in AI powered customer platforms or still implies too rich a valuation after years of weak returns.
Find out why HubSpot’s -65.6% return over the last year is lagging behind its peers.
Does HubSpot Look Pricey on Earnings?
P/E is a useful lens for HubSpot because the company is profitable and investors often anchor expectations on earnings for mature software platforms. On this metric, HubSpot trades on a P/E of about 97.1x, which is far above the Software industry average of roughly 27.0x and also well above the peer group average of 56.5x. That is a substantial premium for a stock that already carries a history of weak long term total returns.
The fair P/E multiple implied by broader checks is around 44.7x, which is already tailored to HubSpot’s size, business model and risk profile. The current 97.1x level is therefore more than double that fair ratio, suggesting the share price embeds a rich earnings valuation even after the recent sell off. Despite the attention around new AI tools like Agent Hub and Agent Builder, the market is still pricing HubSpot at a level that screens expensive against both its sector and this more customised benchmark.
On earnings, HubSpot stock currently screens as overvalued, with its P/E multiple sitting far above both industry norms and the modelled fair ratio.
NYSE:HUBS P/E Ratio as at Jul 2026
See what the numbers say about this price — find out in our valuation breakdown.
The HubSpot Narrative: What Would Justify Today’s Price?
Simply Wall St Narratives for HubSpot pick up where this valuation puzzle leaves off by spelling out which growth, margin and earnings paths would need to play out for the stock to be worth materially more or less than today’s price. Each Narrative sets out HubSpot’s implied fair value as a thesis about how the business might develop that you can revisit over time, and all of them sit together on Simply Wall St’s Community page.
One of the top community narratives on HubSpot: 42% undervalued
“HubSpot is a leading, product-led CRM platform for SMBs and mid-market companies that bundles marketing, sales, service, operations and commerce capabilities in an easy-to-adopt cloud suite…”
Read one of the top narratives on HubSpot
Do you think there’s more to the story for HubSpot? Head over to our Community to see what others are saying!
The Bottom Line
HubSpot still prices as overvalued on earnings multiples, even after a long stretch of weak 5 year returns, so the stock is not being offered at an obvious discount. With broader valuation checks also scoring poorly, the key question for new buyers is whether HubSpot can grow into its current P/E over time. The real swing factor from here is whether the company can translate its AI products and broader platform strategy into durable earnings progress that eventually makes today’s premium look justified rather than stretched.
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.
Companies discussed in this article include HUBS.
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