DraftKings Inc.
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It als…
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: USD 0.10–19.76 (median 9.93). The recommended value is 184% above that median, so treat the upside with extra caution.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 18.54% growth, 3.1% terminal growth, and 10.8% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 18.54%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.
Blended growth assumption: 18.5% (sector default 7.2%, own revenue history 39.3%, analyst revenue consensus 13.8%).
Analyst consensus expects revenue growth of 13.8% a year; the growth assumption used is 18.5%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 28.21 (+20.0%)
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EPS-based Gordon proxy
— USD 0.10 (-99.6%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 34.81 (+48.0%)
Not used: Free cash flow is 174.5x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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FCFF (steady state)
— USD 19.76 (-16.0%)
Not used: Free cash flow is 174.5x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/EBITDA (12x)
— not applicable
Not used: Cannot be computed: EBITDA is missing, zero or negative.
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Fade DCF (10-year growth fade)
— USD 34.42 (+46.3%)
Not used: Free cash flow is 174.5x net income, which usually means costs such as lease payments sit outside operating cash flow, so it may be overstated.
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EV/Sales (Rule of 40)
— USD 47.55 (+102.1%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 21.66 | -8.6% |
| Base USD 28.21 | 16.6% |
| Bull USD 39.54 | 40.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 23.52 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.1%, discount 10.8%).
Compare: the market implies 13.4% a year, this model assumes 18.5%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| 14.5% | 32.71 | 27.98 | 24.48 | 21.80 | 19.67 |
| 16.5% | 35.25 | 30.10 | 26.29 | 23.36 | 21.04 |
| 18.5% | 37.96 | 32.35 | 28.21 | 25.03 | 22.51 |
| 20.5% | 40.86 | 34.76 | 30.26 | 26.81 | 24.07 |
| 22.5% | 43.94 | 37.33 | 32.45 | 28.70 | 25.73 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 58 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 1 of 4 years profitable | 5 / 20 |
| Cash generation | free cash flow positive in 2 of 4 years | 10 / 20 |
| Growth | revenue +39.3% a year | 20 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| DKNG (this company) | USD 23.52 | 16.6% | – | 18.5 | – | 58 |
| KGF.L Kingfisher plc | GBP 3.72 | 45.2% | 27.0 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 23.01 | 43.6% | 14.0 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.41 | 37.3% | 9.0 | 1.9 | 4.1% | 80 |
| ZAL.DE Zalando SE | EUR 27.49 | 36.6% | 108.5 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 87.74 | 34.9% | 11.2 | 5.1 | – | 100 |
| EXPE Expedia Group | USD 272.48 | 29.6% | 15.8 | 20.2 | 0.7% | 100 |
| BKNG Booking Holdings | USD 168.72 | 28.9% | 17.7 | – | 1.0% | 100 |
| PETS.L Pets at Home Group Plc | GBP 2.58 | 25.2% | 18.8 | 1.2 | 2.9% | 82 |
| Peer median | 16.8 | 1.9 | ||||
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 6,054,525,000 |
|---|---|
| EBITDA | USD |
| EBIT | USD -15,817,000 |
| Net income | USD 3,710,000 |
| Free cash flow | USD 647,503,000 |
| Capital expenditures | USD -15,352,000 |
| Debt | USD |
| Cash | USD 1,127,545,000 |
| Working capital | USD 59,538,000 |
| Shares outstanding | 495,903,000 |