(DKNG) DraftKings - Overview
Sector: Consumer Cyclical | Industry: Gambling | Exchange: NASDAQ (USA) | Market Cap: 12.671m USD | Total Return: -28.5% in 12m
Industry Rotation: -2.7
Avg Turnover: 234M
Qual. Beats: 0
Rev. Trend: 98.8%
Qual. Beats: 0
Warnings
P/E ratio 283.8
Altman Z'' -6.45 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
DraftKings Inc. (DKNG) is a digital sports entertainment and gaming firm headquartered in Boston. The company operates across two primary segments: sports betting, which includes online and retail sportsbooks, and iGaming, which offers digital casino games such as slots and table games. Its business model relies heavily on a proprietary technology stack used to develop software for both internal operations and third-party gaming entities.
The company operates within the high-growth Casinos & Gaming GICS sub-industry, where revenue is largely driven by the ongoing legalization of mobile sports betting across U.S. jurisdictions. Unlike traditional brick-and-mortar operators, DraftKings utilizes a digital-first model characterized by high customer acquisition costs and a focus on lifetime value through cross-selling sports bettors into iGaming products. For a deeper look into these financial trade-offs, ValueRay provides detailed valuation metrics.
In addition to betting and casino products, DraftKings maintains a presence in daily fantasy sports, digital lottery services, and prediction markets. Founded in 2011, the firm has expanded from a niche fantasy provider into a vertically integrated gaming technology provider with operations in the United States and select international markets.
- State legalization timeline for online sports betting and iGaming fuels market expansion
- Customer acquisition cost efficiency and marketing spend reduction accelerate pathway to profitability
- Hold percentage volatility and betting handle growth directly impact quarterly revenue performance
- Competitive intensity from rival operators pressures market share and promotional reinvestment rates
- Federal and state tax policy changes threaten long-term adjusted EBITDA margins
| Net Income: 58.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 8.44 > 1.0 |
| NWC/Revenue: 0.47% < 20% (prev 6.04%; Δ -5.57% < -1%) |
| CFO/TA 0.17 > 3% & CFO 733.4m > Net Income 58.6m |
| Net Debt (342.9m) to EBITDA (391.0m): 0.88 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (532.0m) vs 12m ago 7.85% < -2% |
| Gross Margin: 41.79% > 18% (prev 0.38%; Δ 4.14k% > 0.5%) |
| Asset Turnover: 142.6% > 50% (prev 110.8%; Δ 31.86% > 0%) |
| Interest Coverage Ratio: 2.69 > 6 (EBITDA TTM 391.0m / Interest Expense TTM 42.4m) |
| A: 0.01 (Total Current Assets 1.58b - Total Current Liabilities 1.55b) / Total Assets 4.31b |
| B: -1.49 (Retained Earnings -6.42b / Total Assets 4.31b) |
| C: 0.03 (EBIT TTM 114.0m / Avg Total Assets 4.41b) |
| D: -1.72 (Book Value of Equity -6.38b / Total Liabilities 3.70b) |
| Altman-Z'' Score: -6.45 = D |
| DSRI: 0.46 (Receivables 86.1m/147.5m, Revenue 6.29b/5.00b) |
| GMI: 0.92 (GM 41.79% / 38.33%) |
| AQI: 1.05 (AQ_t 0.60 / AQ_t-1 0.57) |
| SGI: 1.26 (Revenue 6.29b / 5.00b) |
| TATA: -0.16 (NI 58.6m - CFO 733.4m) / TA 4.31b) |
| Beneish M-Score: -3.49 (Cap -4..+1) = AA |
Over the past week, the price has changed by +0.99%, over one month by +10.48%, over three months by +16.46% and over the past year by -28.53%.
- StrongBuy: 20
- Buy: 7
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 34.8 | 37% |
P/E Forward = 22.4215
P/S = 2.0139
P/B = 20.9424
P/EG = 0.0914
Revenue TTM = 6.29b USD
EBIT TTM = 114.0m USD
EBITDA TTM = 391.0m USD
Long Term Debt = 1.84b USD (from longTermDebt, last quarter)
Short Term Debt = 10.9m USD (from shortTermDebt, last quarter)
Debt = 1.85b USD (corrected: LT Debt 1.84b + ST Debt 10.9m)
Net Debt = 342.9m USD (from netDebt column, last quarter)
Enterprise Value = 13.52b USD (12.67b + Debt 1.85b - CCE 999.4m)
Interest Coverage Ratio = 2.69 (Ebit TTM 114.0m / Interest Expense TTM 42.4m)
EV/FCF = 19.92x (Enterprise Value 13.52b / FCF TTM 678.5m)
FCF Yield = 5.02% (FCF TTM 678.5m / Enterprise Value 13.52b)
FCF Margin = 10.78% (FCF TTM 678.5m / Revenue TTM 6.29b)
Net Margin = 0.93% (Net Income TTM 58.6m / Revenue TTM 6.29b)
Gross Margin = 41.79% ((Revenue TTM 6.29b - Cost of Revenue TTM 3.66b) / Revenue TTM)
Gross Margin QoQ = 42.32% (prev 45.98%)
Tobins Q-Ratio = 3.14 (Enterprise Value 13.52b / Total Assets 4.31b)
Interest Expense / Debt = 0.31% (Interest Expense 5.74m / Debt 1.85b)
Taxrate = 23.21% (6.37m / 27.4m)
NOPAT = 87.5m (EBIT 114.0m * (1 - 23.21%))
Current Ratio = 1.02 (Total Current Assets 1.58b / Total Current Liabilities 1.55b)
Debt / Equity = 3.05 (Debt 1.85b / totalStockholderEquity, last quarter 605.0m)
Debt / EBITDA = 0.88 (Net Debt 342.9m / EBITDA 391.0m)
Debt / FCF = 0.51 (Net Debt 342.9m / FCF TTM 678.5m)
Total Stockholder Equity = 744.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.33% (Net Income 58.6m / Total Assets 4.31b)
RoE = 7.88% (Net Income TTM 58.6m / Total Stockholder Equity 744.6m)
RoCE = 4.42% (EBIT 114.0m / Capital Employed (Equity 744.6m + L.T.Debt 1.84b))
RoIC = 3.39% (NOPAT 87.5m / Invested Capital 2.58b)
WACC = 10.04% (E(12.67b)/V(14.52b) * Re(11.47%) + D(1.85b)/V(14.52b) * Rd(0.31%) * (1-Tc(0.23)))
Discount Rate = 11.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 97.75 | Cagr: 5.85%
[DCF] Terminal Value 62.00% ; FCFF base≈539.2m ; Y1≈354.0m ; Y5≈161.9m
[DCF] Fair Price = 4.08 (EV 2.37b - Net Debt 342.9m = Equity 2.02b / Shares 496.1m; r=10.04% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.85 | # QB: 0
Revenue Correlation: 98.80 | Revenue CAGR: 29.22% | SUE: 0.34 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.31 | Chg30d=-16.78% | Revisions=-50% | Analysts=9
EPS next Quarter (2026-09-30): EPS=-0.11 | Chg30d=+20.80% | Revisions=-33% | Analysts=9
EPS current Year (2026-12-31): EPS=1.09 | Chg30d=-4.89% | Revisions=-50% | GrowthEPS=+65.5% | GrowthRev=+12.4%
EPS next Year (2027-12-31): EPS=1.74 | Chg30d=-6.22% | Revisions=-20% | GrowthEPS=+59.4% | GrowthRev=+13.0%
[Analyst] Revisions Ratio: -50%