DKNG

DraftKings Inc.

Fundamental data last updated:May 26, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Cyclical

industry

Gambling, Resorts & Casinos

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/05/2026

Business Summary

DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states. Its Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states. The company's daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. In addition, it offers DraftKings Marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions, as well as owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.

 


Analyze DKNG on TradingView

VALUATION

P/E

208.71

Market Cap ($M USD)

$12.46B

Forward P/E

6.98

PEG

0.00

PRICE TO SALES

1.98

PRICE TO BOOK

20.23

EV / EBITDA

32.75

5-Year Average P/E

Free Cash Flow Yield

5.44%

DCF Value

$101.78

Graham Number

$1.83

Price to FCF

18.37

EV to FCF

18.87

Earnings Yield

0.48%

FCF Yield

5.44%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.12

Next Year EPS Growth Estimate

$3.60

Next Year Revenue Growth Estimate

$1.05T

Return on Equity (ROE)

7.88%

FREE CASH FLOW

Operating Margin

0.58%

Debt-to-Equity

3.06

Piotroski F-Score

8

Altman Z-Score

1.48

Return on Invested Capital (ROIC)

1.32%

Current Ratio

1.02

Quick Ratio

1.02

Net Debt to EBITDA

0.88

Interest Coverage

1.43

Gross Profit margin

41.79%

FCF PER SHARE

$1.39

REVENUE PER SHARE

$12.91

Analyze DKNG on TradingView

Gainseekers Quantitative Analysis

Summary

DraftKings Inc. appears to be a classic case of market mispricing. Despite a DCF value significantly higher than recent pricing, the stock’s Forward P/E of 7.04 suggests a potential undervaluation relative to its future earnings. However, the Altman Z-score of 1.52 raises red flags about financial distress, indicating a need for caution. The Earnings Yield of 0.47% is underwhelming, hinting at limited immediate returns. Overall, while the stock might seem attractive on a DCF basis, its financial health metrics suggest a more nuanced picture.

AI Exposure / Tech Reliance

Operating in the gambling and casino industry, DraftKings is well-positioned to leverage AI for personalized gaming experiences and customer engagement. The company's tech-driven platform can adapt swiftly to modern shifts, enhancing user interaction and retention. As AI continues to evolve, DraftKings could capitalize on these advancements to maintain a competitive edge.

The Bull Case

For the value or GARP investor, DraftKings offers compelling reasons to buy. The Piotroski F-Score of 8 indicates strong financial health, while a robust FCF Yield of 5.36% suggests efficient cash generation. Despite a modest ROIC of 1.32%, the company's ability to grow sales and maintain a gross profit margin of 41.79% showcases its pricing power. These metrics collectively paint a picture of a company with solid capital efficiency and growth potential.

The Bear Case

DraftKings faces significant structural risks, primarily due to its high valuation multiples. The Price/Book ratio of 20.55 and Price/Sales of 2.01 suggest the stock is priced for perfection, leaving little room for error. With an Operating Margin of just 0.58%, profitability remains a concern. Additionally, trading near its 52-week high indicates potential overextension, making it vulnerable to market corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$35.78

Institutional Ownership %

1-Year Beta

1.67

Insider Buying % (6 Mo)

Distance to 52-Week High

94.19%

Distance to 52-Week Low

18.55%

EARNINGS SURPRISE %

-38.29%

50-DAY SMA

$23.64

200-DAY SMA

$31.69

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.