FUBO
Fubotv Inc
Price:  
2.42 
USD
Volume:  
45,001,096.00
United States | Software
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FUBO WACC - Weighted Average Cost of Capital

The WACC of Fubotv Inc (FUBO) is 8.4%.

The Cost of Equity of Fubotv Inc (FUBO) is 8.45%.
The Cost of Debt of Fubotv Inc (FUBO) is 8.40%.

Range Selected
Cost of equity 7.10% - 9.80% 8.45%
Tax rate 0.40% - 0.50% 0.45%
Cost of debt 7.00% - 9.80% 8.40%
WACC 7.1% - 9.8% 8.4%
WACC

FUBO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.7 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.80%
Tax rate 0.40% 0.50%
Debt/Equity ratio 0.41 0.41
Cost of debt 7.00% 9.80%
After-tax WACC 7.1% 9.8%
Selected WACC 8.4%

FUBO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for FUBO:

cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.7) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.