If You Dig Deeper, fuboTV Stock Isn’t as Overvalued as People Think

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While valuation concerns over fuboTV, Inc. (NYSE:FUBO) are justified, there might be more wiggle room than you think for FUBO Stock.

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fuboTV is a public virtual multichannel video programming distributor platform (MVPD), sort of like Sling (private) and Hulu, owned by Disney (NYSE:DIS). Although those numbers are more difficult to break out for comparison we can compare FUBO to Netflix (NASDAQ:NFLX) using an analysis of their subscriber base.

This might be able to tell us if FUBO stock is too high, adjusting for its very fast growth rate.

For example, fuboTVps revenue growth is growing by more than 80% year-over-year. It is known as a sports-first virtual MVPD with an emphasis on live streaming and sports.

In fact, the company just announced on Jan. 5 its revenue would rise between 77% and 84% during Q4. Moreover, its membership count would be up 72% year-over-year.

But since going public on Oct. 1, FUBO stock has been on a tear. In fact, from $10.26 to a peak of $62.00 in late Dec., the stock was up over 500%. But since then, it has fallen to $27.31 as of Jan. 8.

Market Capitalization and FUBO Stock

Nevertheless, depending on how many shares are included in the market capitalization, FUBO has a market value of $3.571 billion.

As I said, this depends on the share count. fuboTV has a unique capitalization. For example, reading through page 5 of its latest prospectus, it appears that there are 130.805 million shares outstanding.

But that assumes that all its Series AA Preferred Stock converts into common stock. I suspect this will happen over time, but there are good reasons why this should happen.