DKNG Stock Analysis: DraftKings | NASDAQ
Gambling | NASDAQ, USA | Market Cap: 10.932m USD | 12M Return: -46.7% | US26142V1052 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 286M
Qual. Beats: -1
Rev. Trend: 98.5%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 7.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
DraftKings Inc. (NASDAQ: DKNG) is a digital sports entertainment and gaming company headquartered in Boston, Massachusetts, and founded in 2011. The company went public on April 24, 2020, and is classified within the Consumer Discretionary sector under the Casinos & Gaming sub-industry, with a large-cap market capitalization of approximately $10.9 billion USD.
DraftKings operates a diversified online gaming platform spanning online and retail sports betting, daily fantasy sports, digital lottery courier services, prediction markets, and iGaming products such as blackjack, roulette, baccarat, and slot machines. The company also licenses proprietary sports betting and casino gaming software to third-party operators. Its business model is anchored in the U.S. digital sports betting and iGaming markets, which expanded following the 2018 Supreme Court decision striking down PASPA and have since become among the fastest-growing segments within the broader gaming industry. DraftKings generates revenue primarily through player wagering activity, with contributions from marketing partnerships, platform licensing, and brand integrations across professional sports leagues.
- New state sports betting legalization expands US TAM
- iGaming revenue scales with higher margins than sportsbook
- Promotional spend pressures profitability against FanDuel competition
| Net Income: -166.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 3.83 > 1.0 |
| NWC/Revenue: 0.42% < 20% (prev 8.36%; Δ -7.94% < -1%) |
| CFO/TA 0.16 > 3% & CFO 671.0m > Net Income -166.9m |
| Net Debt (1.01b) to EBITDA (163.3m): 6.20 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (496.1m) vs 12m ago -6.31% < -2% |
| Gross Margin: 40.54% > 18% (prev 39.45%; Δ 1.09% > 0.5%) |
| Asset Turnover: 142.2% > 50% (prev 120.9%; Δ 21.30% > 0%) |
| Interest Coverage Ratio: -3.37 > 6 (EBIT TTM -128.7m / Interest Expense TTM 38.2m) |
| A: 0.01 (Total Current Assets 1.58b - Total Current Liabilities 1.55b) / Total Assets 4.28b |
| B: -1.52 (Retained Earnings -6.48b / Total Assets 4.28b) |
| C: -0.03 (EBIT TTM -128.7m / Avg Total Assets 4.38b) |
| D: 0.15 (Book Value of Equity 569.4m / Total Liabilities 3.71b) |
| Altman-Z'' = -4.94 = D |
| DSRI: 0.52 (Receivables 82.1m/136.6m, Revenue 6.22b/5.41b) |
| GMI: 0.97 (GM 39.45% / 40.54%) |
| AQI: 1.05 (AQ_t 0.60 / AQ_t-1 0.57) |
| SGI: 1.15 (Revenue 6.22b / 5.41b) |
| TATA: -0.20 (NI -166.9m - CFO 671.0m) / TA 4.28b) |
| Beneish M = -3.33 (Cap -4..+1) = AA |
As of October 03, 2026, the stock is trading at USD 18.59 with a total of 17,775,341 shares traded. Over the past week, the price has changed by -15.58%, over one month by -23.21%, over three months by -28.20% and over the past year by -46.72%.
Current recommended Stop Loss: 16.90 (which is 9.1% or 1.5 ATR below the current price).
DraftKings has received a consensus analysts rating of 4.47. Therefore, it is recommended to buy DKNG.
- StrongBuy: 20
- Buy: 7
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 35.1 | 88.9% |
P/E Forward = 12.6422
P/S = 1.7568
P/B = 18.5267
P/EG = 0.0519
Revenue TTM = 6.22b USD
EBIT TTM = -128.7m USD
EBITDA TTM = 163.3m USD
Long Term Debt = 1.83b USD (from longTermDebt, last quarter)
Short Term Debt = 9.73m USD (from shortTermDebt, last quarter)
Debt = 2.00b USD (from shortLongTermDebtTotal, last quarter) + Leases 81.0m
Net Debt = 1.01b USD (calculated: Debt 2.00b - CCE 983.9m)
Enterprise Value = 11.9b USD (10.9b + Debt 2.00b - CCE 983.9m)
Interest Coverage Ratio = -3.37 (Ebit TTM -128.7m / Interest Expense TTM 38.2m)
EV/FCF = 19.40x (Enterprise Value 11.9b / FCF TTM 615.8m)
FCF Yield = 5.15% (FCF TTM 615.8m / Enterprise Value 11.9b)
FCF Margin = 9.90% (FCF TTM 615.8m / Revenue TTM 6.22b)
Net Margin = -2.68% (Net Income TTM -166.9m / Revenue TTM 6.22b)
Gross Margin = 40.54% ((Revenue TTM 6.22b - Cost of Revenue TTM 3.70b) / Revenue TTM)
Gross Margin QoQ = 38.21% (prev 42.32%)
Tobins Q-Ratio = 2.79 (Enterprise Value 11.9b / Total Assets 4.28b)
Interest Expense / Debt = 1.91% (Interest Expense 38.2m / Debt 2.00b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -101.7m (EBIT -128.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.02 (Total Current Assets 1.58b / Total Current Liabilities 1.55b)
Debt / Equity = 3.51 (Debt 2.00b / totalStockholderEquity, last quarter 569.4m)
Debt / EBITDA = 6.20 (Net Debt 1.01b / EBITDA 163.3m)
Debt / FCF = 1.65 (Net Debt 1.01b / FCF TTM 615.8m)
Total Stockholder Equity = 634.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.81% (Net Income -166.9m / Total Assets 4.28b)
RoE = -26.30% (Net Income TTM -166.9m / Total Stockholder Equity 634.6m)
RoCE = -5.21% (EBIT -128.7m / Capital Employed (Equity 634.6m + L.T.Debt 1.83b))
RoIC = -4.19% (negative operating profit) (NOPAT -101.7m / Invested Capital 2.43b)
WACC = 6.75% (E(10.9b)/V(12.9b) * Re(7.71%) + D(2.00b)/V(12.9b) * Rd(1.91%) * (1-Tc(0.21)))
Discount Rate = 7.71% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.53 | Cagr: 2.02%
[DCF] Terminal Value 77.97% ; FCFF base≈558.6m ; Y1≈640.3m ; Y5≈942.4m
[DCF] Fair Price = 26.53 (EV 14.2b - Net Debt 1.01b = Equity 13.2b / Shares 496.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.35 | # QB: -1
Revenue Correlation: 98.53 | Revenue CAGR: 25.74% | SUE: -1.64 | # QB: -1
EPS current Quarter (2026-09-30): EPS=-0.15 | Chg30d=-11.55% | Revisions=-50% | Analysts=10
EPS current Year (2026-12-31): EPS=0.90 | Chg30d=+1.20% | Revisions=-81% | GrowthEPS=+36.2% | GrowthRev=+10.5%
EPS next Year (2027-12-31): EPS=1.69 | Chg30d=+3.06% | Revisions=-59% | GrowthEPS=+88.4% | GrowthRev=+13.3%
[Analyst] Revisions Ratio: -76% (up=3, down=31)