Hubbell (Hubbell) Intrinsic Value: DCF (Dividends Based) : $213.62 (As of Apr. 30, 2024)

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What is Hubbell Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-30), Hubbell's intrinsic value calculated from the Discounted Dividend model is $213.62.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Hubbell's Predictability Rank is 3.5-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Hubbell is -90.61%.

The historical rank and industry rank for Hubbell's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

HUBB' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.79 Med: 1.41 Max: 1.91
Current: 1.91

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Hubbell was 1.91. The lowest was 0.79. And the median was 1.41.

HUBB's Price-to-DCF (Dividends Based) is ranked worse than
73.35% of 409 companies
in the Industrial Products industry
Industry Median: 1.11 vs HUBB: 1.91

Hubbell Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Hubbell's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hubbell Intrinsic Value: DCF (Dividends Based) Chart

Hubbell Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

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153.98

162.33

155.69

166.55

232.51

Hubbell Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															166.55	189.94	209.71	205.09	232.51

Competitive Comparison of Hubbell's Intrinsic Value: DCF (Dividends Based)

For the Electrical Equipment & Parts subindustry, Hubbell's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hubbell's Price-to-DCF (Dividends Based) Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hubbell's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Hubbell's Price-to-DCF (Dividends Based) falls into.

Hubbell Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.63%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 9.50%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Hubbell's average Dividend Growth Rate in the past 10 years was 9.50%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 9.50%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $13.788.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Hubbell's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.095)/(1+0.11) = 0.98648648648649
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

13.788

15.4932

213.62

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(213.62	-	407.19)	/	213.62
	=	-90.61 %

Hubbell (NYSE:HUBB) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Hubbell Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Hubbell's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Hubbell (Hubbell) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hubbell Inc (NYSE:HUBB) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

HUEC:Germany

Address

40 Waterview Drive, Shelton, CT, USA, 06484

Website

https://www.hubbell.com

Hubbell is a diversified conglomerate industrial company that mostly competes in the electrical components market. Its products and services serve vital portions of the U.S. electrical supply chain, including transmission and distribution as well as the commercial, industrial, and residential end markets. The company organizes its business into two segments: electrical and power systems. The consolidated business sells about two thirds of its products via distributors, with the remainder sold via direct sales to utilities and contractors. The 2018 acquisition of Aclara, folded into the utility solutions segment, brought Hubbell a portfolio of smart meters and communication sensors that serves electrical, water, and gas utilities.

Executives

John F Malloy	director	2556 SPRING VALLEY ROAD, BETHLEHEM PA 18105
Del Nero Jonathan M.	officer: Vice President, Controller	C/0 HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Alyssa R Flynn	officer: Chief Human Resources Officer	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
William R Sperry	officer: Executive VP and CFO	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Gerben Bakker	officer: Group Vice President	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Mark Eugene Mikes	officer: President Electrical Solutions	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Gregory Gumbs	officer: President, Utility Solutions	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Debra L. Dial	director	208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Carlos M Cardoso	director	STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Anthony Guzzi	director	301 MERRITT SEVEN, 6TH FLOOR, NORWALK CT 06851
Allan Connolly	officer: Group President, Power Systems	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Stephen M Mais	officer: Vice President Human Resources	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484
Rhett Anthony Hernandez	director	40 WATERVIEW DRIVE, SHELTON CT 06484
David G Nord	officer: Senior VP & CFO	UNITED TECHNOLOGIES CORP, ONE FINANCIAL PLAZA, HARTFORD CT 06101
Joseph Anthony Capozzoli	officer: VP and Corporate Controller	C/O HUBBELL INCORPORATED, 40 WATERVIEW DRIVE, SHELTON CT 06484