04-28-2021, 08:35 AM
Trying to get future valuation based on future estimated Revenues for fuboTV...comme
<!-- SC_OFF --><div class="md"><p>I'm looking to get a valuation on FUBOTV based on my estimate Subs growth out to 2025. This is how I have approached it. Can I get some comments on this please as to is it a valid approach or not? Suggestions of alternates...</p> <p>P/S(TTM) = 4 Stock Price is $22Current subs as of Dec 2020 - 545K - 41% growth</p> <p><strong>Streaming Subscriptions</strong></p> <p>Assume growth is at the same level for next 5 years:</p> <p>Sub Dec 2021 - 770K -> Sub Dec 2022 - 1.085M -> Sub Dec 2023 - 1530M-> Sub Dec 2024 - 2.16M-> Sub Dec 2025 - <strong>3.043M</strong></p> <p>Assume we only get revenue at the base subscription level to be conservative:</p> <p>$65 x 3M x 12 = $2.4B</p> <p><strong>Online Sportsbook & Fantasy Sports</strong></p> <p>Draftkings reported $65 per unique monthly user in Q4 2020. They have 1.5 million of these. I am giving FUBO 1/3 of this per active users to be prudent as we just don't know yet what sort of money FUBO will bring in for Fantasy Sports and Sports Betting.</p> <p>By 2025 with 3 Million users getting an estimated $22 on average per user per month</p> <p>3m users x $22 x 12 months = $792M per annum</p> <p><strong>Ad Revenue</strong></p> <p>We assume FUBO can work the Ad Revenue to at least Hulu's level of 34%(Youtube is at 47%) of subscriber revenue by 2025</p> <p>Subscriber Revenue in 2025 estimates as above at $2.4B * 34% = $816M</p> <p><strong>Total Revenue by 2025</strong></p> <p>$2.4B + $0.792B + $0.816B = $4.008B</p> <p>P/S(TTM) = 4 Assume it will double given growth(which is a conservative measure) to 8</p> <p>Sales = $4B</p> <p>Shares Outstanding = 140.16 million</p> <p>P/4B=8</p> <p>P=32B/140.16M</p> <p>FUBO Price as of 2025 based on assumptions above = $228.31</p> <p>Is this realistic to attempt a valuation going backwards on Price/Sale ratio?</p> <p>Thanks, No-Ball7005</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/No-Ball7005"> /u/No-Ball7005 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mzx6w6/trying_to_get_future_valuation_based_on_future/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mzx6w6/trying_to_get_future_valuation_based_on_future/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I'm looking to get a valuation on FUBOTV based on my estimate Subs growth out to 2025. This is how I have approached it. Can I get some comments on this please as to is it a valid approach or not? Suggestions of alternates...</p> <p>P/S(TTM) = 4 Stock Price is $22Current subs as of Dec 2020 - 545K - 41% growth</p> <p><strong>Streaming Subscriptions</strong></p> <p>Assume growth is at the same level for next 5 years:</p> <p>Sub Dec 2021 - 770K -> Sub Dec 2022 - 1.085M -> Sub Dec 2023 - 1530M-> Sub Dec 2024 - 2.16M-> Sub Dec 2025 - <strong>3.043M</strong></p> <p>Assume we only get revenue at the base subscription level to be conservative:</p> <p>$65 x 3M x 12 = $2.4B</p> <p><strong>Online Sportsbook & Fantasy Sports</strong></p> <p>Draftkings reported $65 per unique monthly user in Q4 2020. They have 1.5 million of these. I am giving FUBO 1/3 of this per active users to be prudent as we just don't know yet what sort of money FUBO will bring in for Fantasy Sports and Sports Betting.</p> <p>By 2025 with 3 Million users getting an estimated $22 on average per user per month</p> <p>3m users x $22 x 12 months = $792M per annum</p> <p><strong>Ad Revenue</strong></p> <p>We assume FUBO can work the Ad Revenue to at least Hulu's level of 34%(Youtube is at 47%) of subscriber revenue by 2025</p> <p>Subscriber Revenue in 2025 estimates as above at $2.4B * 34% = $816M</p> <p><strong>Total Revenue by 2025</strong></p> <p>$2.4B + $0.792B + $0.816B = $4.008B</p> <p>P/S(TTM) = 4 Assume it will double given growth(which is a conservative measure) to 8</p> <p>Sales = $4B</p> <p>Shares Outstanding = 140.16 million</p> <p>P/4B=8</p> <p>P=32B/140.16M</p> <p>FUBO Price as of 2025 based on assumptions above = $228.31</p> <p>Is this realistic to attempt a valuation going backwards on Price/Sale ratio?</p> <p>Thanks, No-Ball7005</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/No-Ball7005"> /u/No-Ball7005 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mzx6w6/trying_to_get_future_valuation_based_on_future/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mzx6w6/trying_to_get_future_valuation_based_on_future/">[comments]</a></span>Kind Regards R