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Is HubSpot (HUBS) Cheap Following Its FTSE All World Index Exit?

Simply Wall St · 17h ago

HubSpot stock reaction after FTSE All-World exit

HubSpot (HUBS) was removed from the FTSE All-World Index on 19 September 2026. This type of change can lead index-tracking funds to adjust their holdings and may prompt investors to reassess the stock’s role in diversified portfolios.

Recent price action around HubSpot has been volatile. The share price fell 14.7% over the last week and is down 44.1% year to date, while the 1 year total shareholder return declined 59.1% and the 5 year total shareholder return fell 69.8%. This contrasts with a 23.4% 90 day share price gain and points to short term momentum building after a much weaker longer run.

Compare HubSpot's sharp swing in sentiment with other high quality undervalued opportunities by scanning our hand picked list of 30 high quality undervalued stocks that share solid fundamentals and cash generation.

HubSpot now trades well below both analyst targets and one estimate of intrinsic value after that index exit. Are investors rightly pricing in risk, or has caution tipped into excess as the valuation resets?

Most Popular Narrative: 14% Undervalued

Against HubSpot's last close at $213.86, the most followed valuation framework points to a fair value of $249.37, implying a meaningful gap that investors now have to weigh against recent price volatility and the FTSE index removal.

HubSpot is a direct beneficiary of the rapid digitization of SMBs and enterprises, as more customers consolidate their marketing, sales, and service stacks onto integrated cloud platforms like HubSpot. This is evidenced by rising multi-hub adoption and seat upgrades, which should drive recurring revenue and higher average revenue per customer over time.

See why 66 investors see HubSpot as 14% undervalued.

Result: Fair Value of $249.37 (UNDERVALUED)

Still, the narrative around HubSpot can break if AI agent monetization remains patchy or if SMB and mid market customers cut software budgets more aggressively.

Find out about the key risks to this HubSpot narrative.

Another View on HubSpot’s Valuation

The first take on HubSpot leans on analyst fair value around $249.37. A different lens tells a tougher story. On a P/E of 72.6x versus a US Software average of 30.7x and a fair ratio of 66.3x, HubSpot screens as expensive, which raises the question of how much execution risk investors are really being paid for.

For a closer look at how that earnings multiple compares with peers and the fair ratio our model points to, See what the numbers say about this price — find out in our valuation breakdown.

NYSE:HUBS P/E Ratio as at Sep 2026
NYSE:HUBS P/E Ratio as at Sep 2026

Next Steps

Sentiment around HubSpot is clearly split, with sharp price moves and mixed valuation signals. Act quickly; review the full picture and weigh both sides with 3 key rewards and 2 important warning signs.

Looking for more ideas beyond HubSpot?

Do not stop with a single stock. Use this pullback in HubSpot as the push to refresh your broader watchlist with fresh, data driven ideas.

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.