What is FUBO's DCF valuation?

Fubotv Inc (FUBO) DCF Valuation Analysis

Executive Summary

As of April 3, 2026, Fubotv Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $9.77, this represents a potential upside of -902.8%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -574.9%
Potential Upside (10-year) -902.8%
Discount Rate (WACC) 6.8% - 10.1%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $1623 million in 12-2024 to $10072 million by 12-2034, representing a compound annual growth rate of approximately 20.0%.

Fiscal Year Revenue (USD millions) Growth
12-2024 1623 19%
12-2025 1712 5%
12-2026 2315 35%
12-2027 3036 31%
12-2028 3776 24%
12-2029 4607 22%
12-2030 5519 20%
12-2031 6577 19%
12-2032 7625 16%
12-2033 8831 16%
12-2034 10072 14%

Profitability Projections

Net profit margin is expected to improve from -11% in 12-2024 to -10% by 12-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2024 (178) -11%
12-2025 (183) -11%
12-2026 (244) -11%
12-2027 (315) -10%
12-2028 (386) -10%
12-2029 (464) -10%
12-2030 (554) -10%
12-2031 (659) -10%
12-2032 (761) -10%
12-2033 (880) -10%
12-2034 (1,000) -10%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $4 million. Projected CapEx is expected to maintain at approximately 0% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2025 5
12-2026 5
12-2027 7
12-2028 10
12-2029 12
12-2030 15

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 18
Days Inventory 0
Days Payables 274

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
0M/2025 0 (0) 0 0 0
2026 (220) (1) 9 2 (230)
2027 (283) (1) 12 12 (306)
2028 (346) (2) 15 31 (390)
2029 (414) (2) 18 18 (449)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 6.8% - 10.1%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 6.9x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -574.9%
10-Year DCF (Growth) 0.00 -902.8%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(7,550)M
  • 10-Year Model: $(12,715)M

Investment Conclusion

Is Fubotv Inc (FUBO) a buy or a sell? Fubotv Inc is definitely a sell. Based on our DCF analysis, Fubotv Inc (FUBO) appears to be overvalued with upside potential of -902.8%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.

Key investment drivers include:

  • Expanding profit margins (from -11% to -10%)
  • Steady revenue growth (20.0% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $9.77.