DraftKings Inc.

NasdaqGS:DKNG Stock Report

Market Cap: US$18.5b

DraftKings Valuation

Is DKNG 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 DKNG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DKNG ($37.1) is trading below our estimate of fair value ($121.71)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DKNG. This is calculated by dividing DKNG's market cap by their current revenue.
What is DKNG's PS Ratio?
PS Ratio3.9x
SalesUS$4.61b
Market CapUS$18.49b

Price to Sales Ratio vs Peers

How does DKNG's PS Ratio compare to its peers?

The above table shows the PS ratio for DKNG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
LVS Las Vegas Sands
3.2x6.6%US$37.6b
WYNN Wynn Resorts
1.3x2.9%US$9.7b
MGM MGM Resorts International
0.6x1.3%US$10.4b
CHDN Churchill Downs
3.7x7.0%US$9.7b
DKNG DraftKings
3.9x18.2%US$18.5b

Price-To-Sales vs Peers: DKNG is expensive based on its Price-To-Sales Ratio (3.9x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does DKNG's PS Ratio compare vs other companies in the US Hospitality Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
BLMN Bloomin' Brands
0.2x-2.3%US$1.04b
BALY Bally's
0.3x2.2%US$725.09m
TAST Carrols Restaurant Group
0.3x2.9%US$478.64m
GENK GEN Restaurant Group
0.2x18.5%US$242.72m
DKNG 3.9xIndustry Avg. 1.7xNo. of Companies28PS01.22.43.64.86+
28 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DKNG is expensive based on its Price-To-Sales Ratio (3.9x) compared to the US Hospitality industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is DKNG'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.

DKNG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: DKNG is expensive based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).

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 DKNG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.10
US$51.25
+38.1%
16.3%US$77.00US$35.00n/a35
Dec ’25US$43.65
US$50.71
+16.2%
16.7%US$77.00US$33.00n/a35
Nov ’25US$35.69
US$49.94
+39.9%
17.1%US$77.00US$32.00n/a35
Oct ’25US$38.25
US$49.60
+29.7%
19.3%US$89.00US$32.00n/a35
Sep ’25US$34.50
US$49.22
+42.7%
19.8%US$89.00US$32.00n/a34
Aug ’25US$35.49
US$51.81
+46.0%
18.0%US$89.00US$33.00n/a33
Jul ’25US$37.30
US$51.99
+39.4%
17.7%US$89.00US$35.00n/a35
Jun ’25US$35.13
US$52.31
+48.9%
17.7%US$89.00US$35.00n/a35
May ’25US$41.82
US$51.48
+23.1%
18.6%US$91.00US$32.00n/a35
Apr ’25US$44.94
US$50.91
+13.3%
18.4%US$89.00US$32.00n/a34
Mar ’25US$43.53
US$48.78
+12.1%
13.1%US$60.00US$32.00n/a32
Feb ’25US$40.65
US$40.91
+0.6%
15.4%US$50.00US$22.50n/a32
Jan ’25US$35.25
US$39.99
+13.4%
15.1%US$50.00US$22.50n/a31
Dec ’24US$39.00
US$39.52
+1.3%
15.6%US$50.00US$22.50US$43.6531
Nov ’24US$27.23
US$35.79
+31.4%
15.1%US$44.00US$22.50US$35.6931
Oct ’24US$29.44
US$35.89
+21.9%
15.1%US$44.00US$22.50US$38.2531
Sep ’24US$29.64
US$35.12
+18.5%
17.6%US$44.00US$22.50US$34.5030
Aug ’24US$31.55
US$30.43
-3.5%
18.4%US$39.00US$20.00US$35.4930
Jul ’24US$26.57
US$28.13
+5.9%
20.2%US$39.00US$17.00US$37.3031
Jun ’24US$24.43
US$27.32
+11.8%
20.4%US$39.00US$17.00US$35.1331
May ’24US$22.60
US$24.19
+7.1%
20.6%US$38.00US$15.00US$41.8231
Apr ’24US$19.36
US$23.85
+23.2%
22.4%US$38.00US$13.00US$44.9430
Mar ’24US$18.32
US$23.75
+29.6%
22.3%US$38.00US$13.00US$43.5330
Feb ’24US$16.48
US$20.50
+24.4%
35.5%US$48.00US$12.00US$40.6529
Jan ’24US$11.39
US$20.88
+83.3%
35.1%US$48.00US$12.00US$35.2528
Dec ’23US$15.52
US$20.88
+34.5%
35.1%US$48.00US$12.00US$39.0028

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 05:06
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

DraftKings Inc. is covered by 52 analysts. 34 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Marie D'OrnanoArete Research Services LLP
Brandt MontourBarclays
Michael HickeyBenchmark Company