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An Open Letter to HubSpot Employees: Focus on Value, Not Valuation (readthink.com)
4 points by erikdevaney on Feb 22, 2016 | hide | past | favorite | 1 comment



From a financial/investing standpoint, he's in a way accepting the teachings of value investing - the business inherently has value in it, regardless of what the general market may irrationally place on the company; and that in the end, the company will be subject to mean reversion, and will eventually trend back upward when the markets stabilize.

However, the reality is that, from a value investing perspective, $HUBS is a company with negative EPS, high price-to-book, and operates on a $1B+ market cap with only $182MM in revenue...so it is reverting to the mean by correcting itself from such a wildly high valuation.




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