DKNG PE Ratio & Valuation,Is DKNG Overvalued

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 2.57 is considered Fairly compared with the five-year average of 135.29. The fair price of Draftkings Inc (DKNG) is between 12.41 to 132.10 according to relative valuation methord.

Relative Value

Fair Zone

12.41-132.10

Current Price：35.52

Fair

86.38

21.57

EV/EBITDA

Draftkings Inc. (DKNG) has a current EV/EBITDA of 21.57. The 5-year average EV/EBITDA is 418.40. The thresholds are as follows: Strongly Undervalued below -3196.38, Undervalued between -3196.38 and -1388.99, Fairly Valued between 2225.79 and -1388.99, Overvalued between 2225.79 and 4033.18, and Strongly Overvalued above 4033.18. The current Forward EV/EBITDA of 21.57 falls within the Historic Trend Line -Fairly Valued range.

53.22

EV/EBIT

Draftkings Inc. (DKNG) has a current EV/EBIT of 53.22. The 5-year average EV/EBIT is 64.86. The thresholds are as follows: Strongly Undervalued below -1802.26, Undervalued between -1802.26 and -868.70, Fairly Valued between 998.43 and -868.70, Overvalued between 998.43 and 1931.99, and Strongly Overvalued above 1931.99. The current Forward EV/EBIT of 53.22 falls within the Historic Trend Line -Fairly Valued range.

2.57

Draftkings Inc. (DKNG) has a current PS of 2.57. The 5-year average PS is 5.67. The thresholds are as follows: Strongly Undervalued below -5.12, Undervalued between -5.12 and 0.27, Fairly Valued between 11.07 and 0.27, Overvalued between 11.07 and 16.46, and Strongly Overvalued above 16.46. The current Forward PS of 2.57 falls within the Historic Trend Line -Fairly Valued range.

17.87

P/OCF

Draftkings Inc. (DKNG) has a current P/OCF of 17.87. The 5-year average P/OCF is 573.62. The thresholds are as follows: Strongly Undervalued below -4737.23, Undervalued between -4737.23 and -2081.81, Fairly Valued between 3229.04 and -2081.81, Overvalued between 3229.04 and 5884.47, and Strongly Overvalued above 5884.47. The current Forward P/OCF of 17.87 falls within the Historic Trend Line -Fairly Valued range.

23.68

P/FCF

Draftkings Inc. (DKNG) has a current P/FCF of 23.68. The 5-year average P/FCF is -11.61. The thresholds are as follows: Strongly Undervalued below -173.61, Undervalued between -173.61 and -92.61, Fairly Valued between 69.39 and -92.61, Overvalued between 69.39 and 150.39, and Strongly Overvalued above 150.39. The current Forward P/FCF of 23.68 falls within the Historic Trend Line -Fairly Valued range.

Draftkings Inc (DKNG) has a current Price-to-Book (P/B) ratio of 24.08. Compared to its 3-year average P/B ratio of 17.12 , the current P/B ratio is approximately 40.69% higher. Relative to its 5-year average P/B ratio of 13.00, the current P/B ratio is about 85.28% higher. Draftkings Inc (DKNG) has a Forward Free Cash Flow (FCF) yield of approximately 3.70%. Compared to its 3-year average FCF yield of -0.75%, the current FCF yield is approximately -596.21% lower. Relative to its 5-year average FCF yield of -2.66% , the current FCF yield is about -239.12% lower.

24.08

P/B

Median3y

17.12

Median5y

13.00

3.70

FCF Yield

Median3y

-0.75

Median5y

-2.66

Competitors Valuation Multiple

The average P/S ratio for DKNG's competitors is 2.63, providing a benchmark for relative valuation. Draftkings Inc Corp (DKNG) exhibits a P/S ratio of 2.57, which is -2.16% above the industry average. Given its robust revenue growth of 4.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DKNG decreased by 4.52% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -61.06 to -65.53.

The secondary factor is the Revenue Growth, contributed 4.43%to the performance.

Overall, the performance of DKNG in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.43%

1.10B → 1.14B

Revenue Growth

-16.26%

-26.81 → -22.45

Margin Expansion

7.31%

-61.06 → -65.53

P/E Change

-4.52%

37.20 → 35.52

Mkt Cap Growth

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Frequently Asked Questions

Is Draftkings Inc (DKNG) currently overvalued or undervalued?

What is Draftkings Inc (DKNG) fair value?

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. The fair price of Draftkings Inc (DKNG) is between 12.41 to 132.10 according to relative valuation methord.

How does DKNG's valuation metrics compare to the industry average?

What is the current P/B ratio for Draftkings Inc (DKNG) as of Dec 15 2025?

As of Dec 15 2025, Draftkings Inc (DKNG) has a P/B ratio of 24.08. This indicates that the market values DKNG at 24.08 times its book value.

What is the current FCF Yield for Draftkings Inc (DKNG) as of Dec 15 2025?

As of Dec 15 2025, Draftkings Inc (DKNG) has a FCF Yield of 3.70%. This means that for every dollar of Draftkings Inc’s market capitalization, the company generates 3.70 cents in free cash flow.

What is the current Forward P/E ratio for Draftkings Inc (DKNG) as of Dec 15 2025?

As of Dec 15 2025, Draftkings Inc (DKNG) has a Forward P/E ratio of 86.38. This means the market is willing to pay $86.38 for every dollar of Draftkings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Draftkings Inc (DKNG) as of Dec 15 2025?

As of Dec 15 2025, Draftkings Inc (DKNG) has a Forward P/S ratio of 2.57. This means the market is valuing DKNG at $2.57 for every dollar of expected revenue over the next 12 months.

DKNG Valuation