DraftKings (DKNG): Taking Stock of Valuation as Missouri Opens Statewide Sports Betting

Missouri’s decision to launch legal sports betting statewide on December 1 puts DraftKings (DKNG) in the spotlight. With its untethered mobile license, the company is set to compete in this new and fast-growing market.

See our latest analysis for DraftKings.

DraftKings’ share price reflected mixed momentum this year, surging 3.4% over the past day but down 9.1% for the past month and 17.4% year-to-date. The 1-year total shareholder return stands at -30.3%. Long-term investors still hold a 106.8% gain over three years, illustrating both recent volatility and the company’s staying power as market expectations shift alongside regulatory and earnings developments.

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With DraftKings showing both a steep recent drop and a significant long-term gain, and with the stock trading at a substantial discount to analyst targets, is this the moment for investors to buy in, or is the market already anticipating growth?

Most Popular Narrative: 34.9% Undervalued

DraftKings closed at $29.99, but the most widely followed narrative pins its fair value closer to $46.05. With the current price target far above the last close, this sets up a compelling debate over what factors are driving such a bullish stance.

DraftKings is poised to benefit from the continued expansion of legal online sports betting and iGaming into new states such as Missouri. Potential future openings and ongoing regulatory liberalization expand the company's total addressable market and drive sustained revenue growth.

Read the complete narrative.

Want to see what’s fueling this bold target? The growth logic here isn’t just about more markets, it’s tied to assumptions on revenue gains and profit transformation. Ready to uncover what future profit playbook these numbers secretly rely on? Find out what the consensus is betting on next and why the narrative is calling for a much higher price.

Result: Fair Value of $46.05 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heightened regulatory uncertainty and rising competition from new prediction markets could quickly shift the outlook for DraftKings' growth narrative.

Find out about the key risks to this DraftKings narrative.

Build Your Own DraftKings Narrative

If you want to dig into the numbers and form your own perspective on DraftKings, it takes less than three minutes to build your take. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding DraftKings.

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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.

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