A Fresh Look at FuboTV (FUBO) Valuation After Fubo Sports Standalone Service Announcement

If you’ve been following fuboTV (NYSE:FUBO), you probably noticed the recent 3.3% pop in its share price following the announcement of Fubo Sports, a new standalone streaming plan designed specifically for sports fans. The new tier, set to launch September 2, aims to deliver a focused sports lineup at a lower price point, featuring over 20 national and local channels, plus bundled access to ESPN’s new direct-to-consumer Unlimited plan. This is a move to capture cost-conscious viewers and strengthen Fubo’s position in an increasingly crowded streaming landscape.

This launch comes as momentum for fuboTV has wavered over the past year. The stock is up over 100% in the past twelve months, but longer-term returns remain in negative territory. The short-term bump suggests that investors see growth potential in the new product, possibly reflecting renewed optimism or a shift in risk perception after several quarters of volatility and tough competition across the streaming industry.

After a year marked by dramatic swings and a new growth initiative on the horizon, is the market undervaluing fuboTV, or is all of that optimism already reflected in the current price?

Most Popular Narrative: 21.6% Undervalued

According to the most popular narrative on fuboTV, the stock could be trading significantly below its fair value as a result of overlooked catalysts in digital streaming, subscriber growth, and ad technology improvements.

Expansion of content partnerships (for example, with DAZN), including distribution of exclusive sports rights and FAST channels, enhances differentiation and could drive higher average revenue per user (ARPU) and sustained premium subscription growth. Ongoing enhancement of user experience through personalized features such as Catch Up To Live, Game Highlights, and Timeline Markers directly aligns with rising consumer demand for personalized, interactive content. This development is likely to support higher engagement, lower churn, and improved earnings stability.

Want to uncover the real growth levers driving this undervaluation claim? This narrative teases precise forecasts behind future subscriber jumps, revenue pace, and margin potential. There are ambitious projections that could rewrite fuboTV’s valuation story. Curious to see the surprising quant assumptions fueling that bullish price target?

Result: Fair Value of $4.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent subscriber losses and fierce competition from larger streaming rivals could undermine fuboTV's growth potential in the coming years.

Find out about the key risks to this fuboTV narrative.

Another View: DCF Model Stands Behind the Bullish Case

Looking at it from a different angle, our SWS DCF model also suggests fuboTV is undervalued. This alternative view helps reinforce the fair value range. Could the market be missing something big?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out fuboTV for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own fuboTV Narrative

If you have your own perspective or want to take a hands-on approach, it's easy to piece together your own view in just a few minutes. Do it your way

A great starting point for your fuboTV research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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.

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