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.Looks overvalued
5-year outlook: Not shown because confidence is low: EV/EBITDA (12x) disagrees strongly.
Other models: USD 2.07–14.74 (median 8.41). The recommended value is 83% above that median, so treat the upside with extra caution.
Why: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Details and the full model are below.
Market price above modeled range
Normalised 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: Latest free cash flow is depressed by heavy investment or one-off items, so a three-year average is used instead.
Compare models- Recommended: Normalised free-cash-flow DCF — USD 15.41 (-34.5%)
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EPS-based Gordon proxy
— not applicable
Not used: Cannot be computed: net income is zero or negative.
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DCF (trailing free cash flow)
— USD 29.05 (+23.5%)
Not used: Not chosen: Normalised free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 14.74 (-37.3%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 2.07 (-91.2%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 28.68 (+21.9%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 51.22 (+117.8%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 11.04 | -113.0% |
| Base USD 15.41 | -52.7% |
| Bull USD 22.95 | -2.5% |
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 28.9% a year, this model assumes 18.5%. The market expects more than this model does, which is why it reads as overvalued.
How the Normalised 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% | 18.40 | 15.25 | 12.92 | 11.13 | 9.71 |
| 16.5% | 20.10 | 16.66 | 14.12 | 12.17 | 10.63 |
| 18.5% | 21.90 | 18.17 | 15.41 | 13.29 | 11.61 |
| 20.5% | 23.83 | 19.77 | 16.77 | 14.47 | 12.65 |
| 22.5% | 25.89 | 21.48 | 18.23 | 15.73 | 13.75 |
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: 36 / 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 5 years profitable | 4 / 20 |
| Cash generation | free cash flow positive in 3 of 5 years | 12 / 20 |
| Growth | revenue +29.1% a year | 20 / 20 |
| Balance sheet | net debt 5.7x EBITDA | 0 / 20 |
| Margins | EBITDA margin 3% | 0 / 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 | -52.7% | – | 20.5 | – | 36 |
| 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 |
| LULU Lululemon Athletica | USD 111.77 | 33.3% | 8.9 | 2.6 | – | 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 |
| Peer median | 14.9 | 2.6 | ||||
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:52
| Revenue | USD 6,222,523,000 |
|---|---|
| EBITDA | USD 163,343,000 |
| EBIT | USD -128,733,000 |
| Net income | USD -166,902,000 |
| Free cash flow | USD 615,764,000 |
| Capital expenditures | USD 20,060,000 |
| Debt | USD 1,916,009,000 |
| Cash | USD 983,882,000 |
| Working capital | USD 26,335,000 |
| Shares outstanding | 496,089,000 |