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Is fuboTV (FUBO) Undervalued After Its Recent Share Price Pullback?

Simply Wall St · 23h ago

fuboTV (FUBO) has been grinding lower recently, with the stock down around 29% over the past month and about 40% in the past 3 months, despite revenue growing roughly 30% annually.

See our latest analysis for fuboTV.

Zooming out, that recent slide comes after a sharp rally, with the year to date share price return still strong and the one year total shareholder return comfortably positive. This suggests momentum has cooled rather than completely reversed as investors reassess execution risk and profitability timing.

If fuboTV’s swings have you thinking about where else growth and sentiment might line up better, it could be worth scouting fast growing stocks with high insider ownership as potential next candidates for your watchlist.

With shares retreating from their highs even as revenue keeps climbing, the key question now is whether fuboTV is trading below its intrinsic value or if the market is already pricing in the next leg of growth.

Most Popular Narrative Narrative: 42.9% Undervalued

With fuboTV last closing at $2.57 against a narrative fair value of $4.50, the story being told assumes a far stronger earnings future than today.

In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 10.6x on those 2028 earnings, down from 14.5x today. This future PE is lower than the current PE for the US Interactive Media and Services industry at 16.9x.

Read the complete narrative.

Want to see how modest revenue growth, rising margins, and falling valuation multiples can still support a higher price target? The narrative’s math might surprise you.

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 unresolved cash burn could quickly undermine the bullish case, potentially forcing tougher financing decisions and diluting long term returns.

Find out about the key risks to this fuboTV narrative.

Build Your Own fuboTV Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a fresh narrative in just minutes: Do it your way.

A great starting point for your fuboTV research is our analysis highlighting 4 key rewards and 2 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.