DraftKings Inc.

LSE:0ABA Stock Report

Market Cap: US$21.4b

DraftKings Valuation

Is 0ABA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0ABA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0ABA ($43.78) is trading below our estimate of fair value ($110.53)

Significantly Below Fair Value: 0ABA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0ABA?

Key metric: As 0ABA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0ABA. This is calculated by dividing 0ABA's market cap by their current revenue.
What is 0ABA's PS Ratio?
PS Ratio4.6x
SalesUS$4.61b
Market CapUS$21.36b

Price to Sales Ratio vs Peers

How does 0ABA's PS Ratio compare to its peers?

The above table shows the PS ratio for 0ABA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
ENT Entain
1x4.5%UK£4.7b
PTEC Playtech
1.5x3.1%UK£2.2b
RNK Rank Group
0.6x5.8%UK£410.3m
IHG InterContinental Hotels Group
5x-6.2%UK£15.1b
0ABA DraftKings
4.6x18.5%US$21.4b

Price-To-Sales vs Peers: 0ABA is expensive based on its Price-To-Sales Ratio (4.6x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does 0ABA's PS Ratio compare vs other companies in the GB Hospitality Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
EVOK Evoke
0.1x5.9%US$290.06m
TRC Revel Collective
0.06x-3.1%US$10.88m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$6.05m
0ABA 4.6xIndustry Avg. 1.1xNo. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0ABA is expensive based on its Price-To-Sales Ratio (4.6x) compared to the UK Hospitality industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 0ABA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0ABA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.6x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: 0ABA is expensive based on its Price-To-Sales Ratio (4.6x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0ABA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$44.39
US$50.71
+14.2%
16.7%US$77.00US$33.00n/a35
Nov ’25US$35.70
US$49.94
+39.9%
17.1%US$77.00US$32.00n/a35
Oct ’25US$38.22
US$49.60
+29.8%
19.3%US$89.00US$32.00n/a35
Sep ’25US$34.13
US$49.22
+44.2%
19.8%US$89.00US$32.00n/a34
Aug ’25US$35.84
US$51.81
+44.6%
18.0%US$89.00US$33.00n/a33
Jul ’25US$37.09
US$51.99
+40.2%
17.7%US$89.00US$35.00n/a35
Jun ’25US$34.96
US$52.31
+49.6%
17.7%US$89.00US$35.00n/a35
May ’25US$41.87
US$51.48
+23.0%
18.6%US$91.00US$32.00n/a35
Apr ’25US$45.37
US$50.91
+12.2%
18.4%US$89.00US$32.00n/a34
Mar ’25US$43.29
US$48.78
+12.7%
13.1%US$60.00US$32.00n/a32
Feb ’25US$40.10
US$40.91
+2.0%
15.4%US$50.00US$22.50n/a32
Jan ’25US$35.45
US$39.99
+12.8%
15.1%US$50.00US$22.50n/a31
Dec ’24US$38.95
US$39.52
+1.5%
15.6%US$50.00US$22.50n/a31
Nov ’24US$26.84
US$35.79
+33.3%
15.1%US$44.00US$22.50US$35.7031
Oct ’24US$29.28
US$35.89
+22.6%
15.1%US$44.00US$22.50US$38.2231
Sep ’24US$29.67
US$35.12
+18.4%
17.6%US$44.00US$22.50US$34.1330
Aug ’24US$31.51
US$30.43
-3.4%
18.4%US$39.00US$20.00US$35.8430
Jul ’24US$26.63
US$28.13
+5.6%
20.2%US$39.00US$17.00US$37.0931
Jun ’24US$24.66
US$27.32
+10.8%
20.4%US$39.00US$17.00US$34.9631
May ’24US$22.08
US$24.19
+9.6%
20.6%US$38.00US$15.00US$41.8731
Apr ’24US$19.34
US$23.85
+23.4%
22.4%US$38.00US$13.00US$45.3730
Mar ’24US$18.34
US$23.75
+29.5%
22.3%US$38.00US$13.00US$43.2930
Feb ’24US$15.64
US$20.50
+31.1%
35.5%US$48.00US$12.00US$40.1029
Jan ’24US$11.13
US$20.88
+87.6%
35.1%US$48.00US$12.00US$35.4528
Dec ’23US$15.72
US$20.88
+32.8%
35.1%US$48.00US$12.00US$38.9528
Nov ’23US$16.60
US$25.02
+50.8%
36.4%US$52.00US$12.00US$26.8427

Analyst Forecast: Target price is less than 20% higher than the current share price.

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