DKNG Valuation

Draftkings Inc

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42.730

-0.15(-0.350%)1D

Overview
Forecast
Valuation
Earnings

DKNG Relative Valuation

DKNG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DKNG is overvalued; if below, it's undervalued.

Historical Valuation

Draftkings Inc (DKNG) is now in the Fair zone, suggesting that its current forward PS ratio of 3.09 is considered Fairly compared with the five-year average of 128.33. The fair price of Draftkings Inc (DKNG) is between 11.27 to 162.76 according to relative valuation methord.

Relative Value

Fair Zone

11.27-162.76

Current Price：42.73

Fair

53.51

Trailing

Forward

20.22

EV/EBITDA

Draftkings Inc. (DKNG) has a current EV/EBITDA of 20.22. The 5-year average EV/EBITDA is 414.24. The thresholds are as follows: Strongly Undervalued below -3202.49, Undervalued between -3202.49 and -1394.13, Fairly Valued between 2222.61 and -1394.13, Overvalued between 2222.61 and 4030.98, and Strongly Overvalued above 4030.98. The current Forward EV/EBITDA of 20.22 falls within the Historic Trend Line -Fairly Valued range.

52.93

EV/EBIT

Draftkings Inc. (DKNG) has a current EV/EBIT of 52.93. The 5-year average EV/EBIT is 59.41. The thresholds are as follows: Strongly Undervalued below -1808.30, Undervalued between -1808.30 and -874.44, Fairly Valued between 993.27 and -874.44, Overvalued between 993.27 and 1927.13, and Strongly Overvalued above 1927.13. The current Forward EV/EBIT of 52.93 falls within the Historic Trend Line -Fairly Valued range.

3.09

Draftkings Inc. (DKNG) has a current PS of 3.09. The 5-year average PS is 7.04. The thresholds are as follows: Strongly Undervalued below -6.66, Undervalued between -6.66 and 0.19, Fairly Valued between 13.90 and 0.19, Overvalued between 13.90 and 20.75, and Strongly Overvalued above 20.75. The current Forward PS of 3.09 falls within the Historic Trend Line -Fairly Valued range.

18.45

P/OCF

Draftkings Inc. (DKNG) has a current P/OCF of 18.45. The 5-year average P/OCF is 569.22. The thresholds are as follows: Strongly Undervalued below -4743.58, Undervalued between -4743.58 and -2087.18, Fairly Valued between 3225.61 and -2087.18, Overvalued between 3225.61 and 5882.01, and Strongly Overvalued above 5882.01. The current Forward P/OCF of 18.45 falls within the Historic Trend Line -Fairly Valued range.

20.62

P/FCF

Draftkings Inc. (DKNG) has a current P/FCF of 20.62. The 5-year average P/FCF is -16.27. The thresholds are as follows: Strongly Undervalued below -178.07, Undervalued between -178.07 and -97.17, Fairly Valued between 64.63 and -97.17, Overvalued between 64.63 and 145.53, and Strongly Overvalued above 145.53. The current Forward P/FCF of 20.62 falls within the Historic Trend Line -Fairly Valued range.

Draftkings Inc (DKNG) has a current Price-to-Book (P/B) ratio of 20.99. Compared to its 3-year average P/B ratio of 15.13 , the current P/B ratio is approximately 38.77% higher. Relative to its 5-year average P/B ratio of 12.04, the current P/B ratio is about 74.35% higher. Draftkings Inc (DKNG) has a Forward Free Cash Flow (FCF) yield of approximately 2.36%. Compared to its 3-year average FCF yield of -2.37%, the current FCF yield is approximately -199.42% lower. Relative to its 5-year average FCF yield of -2.97% , the current FCF yield is about -179.27% lower.

20.99

P/B

Median3y

15.13

Median5y

12.04

2.36

FCF Yield

Median3y

-2.37

Median5y

-2.97

Competitors Valuation Multiple

The average P/S ratio for DKNG's competitors is 2.86, providing a benchmark for relative valuation. Draftkings Inc Corp (DKNG) exhibits a P/S ratio of 3.09, which is 8.19% above the industry average. Given its robust revenue growth of 36.95%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Live Nation Entertainment Inc

TKO Group Holdings Inc

Madison Square Garden Sports Corp

Manchester United PLC

3.29

17.46%

3.05B

Performance Decomposition

Market capitalization of DKNG increased by 24.29% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.78 to 10.44.

The secondary factor is the Revenue Growth, contributed 36.95%to the performance.

Overall, the performance of DKNG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

36.95%

1.10B → 1.51B

Revenue Growth

80.62%

5.78 → 10.44

Margin Expansion

-93.28%

-1.03K → -68.91

P/E Change

24.29%