DraftKings Valuation
| DKNG Stock | USD 39.84 1.30 3.16% |
At this time, the firm appears to be overvalued. DraftKings shows a prevailing Real Value of $32.87 per share. The current price of the firm is $39.84. Our model computes the value of DraftKings from reviewing the firm fundamentals such as Current Valuation of 19.89 B, profit margin of (0.09) %, and Operating Margin of (0.25) % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting DraftKings' valuation include:
Price Book 18.053 | Enterprise Value 19.9 B | Enterprise Value Ebitda (36.37) | Price Sales 4.218 | Forward PE 33.67 |
Overvalued
Today
Please note that DraftKings' price fluctuation is very steady at this time. Calculation of the real value of DraftKings is based on 3 months time horizon. Increasing DraftKings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the DraftKings stock is determined by what a typical buyer is willing to pay for full or partial control of DraftKings. Since DraftKings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of DraftKings Stock. However, DraftKings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 39.84 | Real 32.87 | Target 36.17 | Hype 39.84 | Naive 41.12 |
The real value of DraftKings Stock, also known as its intrinsic value, is the underlying worth of DraftKings Company, which is reflected in its stock price. It is based on DraftKings' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of DraftKings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of DraftKings helps investors to forecast how DraftKings stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of DraftKings more accurately as focusing exclusively on DraftKings' fundamentals will not take into account other important factors: When choosing an evaluation method for DraftKings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
DraftKings Cash |
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DraftKings Valuation Trend
Comparing DraftKings' enterprise value against its market capitalization is a good way to estimate the value of DraftKings uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
DraftKings Revenue by Product
DraftKings Total Value Analysis
DraftKings is currently estimated to have valuation of 19.89 B with market capitalization of 19.43 B, debt of 1.35 B, and cash on hands of 1.51 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the DraftKings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
19.89 B | 19.43 B | 1.35 B | 1.51 B |
DraftKings Investor Information
About 77.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.67. DraftKings recorded a loss per share of 0.87. The entity had not issued any dividends in recent years. The firm had 1:1 split on the 5th of May 2022. Based on the key indicators related to DraftKings' liquidity, profitability, solvency, and operating efficiency, DraftKings is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.DraftKings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. DraftKings has an asset utilization ratio of 92.92 percent. This implies that the Company is making $0.93 for each dollar of assets. An increasing asset utilization means that DraftKings is more efficient with each dollar of assets it utilizes for everyday operations.DraftKings Ownership Allocation
DraftKings holds a total of 487.63 Million outstanding shares. The majority of DraftKings outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in DraftKings to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in DraftKings. Please pay attention to any change in the institutional holdings of DraftKings as this could imply that something significant has changed or is about to change at the company. On February 11, 2022, Representative Charles J Chuck Fleischmann of US Congress acquired under $15k worth of DraftKings's common stock.DraftKings Profitability Analysis
The company reported the previous year's revenue of 3.67 B. Net Loss for the year was (802.14 M) with profit before overhead, payroll, taxes, and interest of 756.19 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates DraftKings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in DraftKings and how it compares across the competition.
About DraftKings Valuation
The stock valuation mechanism determines DraftKings' current worth on a weekly basis. Our valuation model uses a comparative analysis of DraftKings. We calculate exposure to DraftKings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of DraftKings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.4 B | |
| Pretax Profit Margin | (0.22) | (0.23) | |
| Operating Profit Margin | (0.22) | (0.23) | |
| Net Loss | (0.22) | (0.23) | |
| Gross Profit Margin | 0.37 | 0.61 |
DraftKings Growth Indicators
Investing in growth stocks can be very risky. If the company such as DraftKings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 462.6 M | |
| Forward Price Earnings | 33.67 |
DraftKings Current Valuation Indicators
Valuation refers to the process of determining the present value of DraftKings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value DraftKings we look at many different elements of the entity such as DraftKings's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as DraftKings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use DraftKings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes DraftKings' worth.Complementary Tools for DraftKings Stock analysis
When running DraftKings' price analysis, check to measure DraftKings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DraftKings is operating at the current time. Most of DraftKings' value examination focuses on studying past and present price action to predict the probability of DraftKings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DraftKings' price. Additionally, you may evaluate how the addition of DraftKings to your portfolios can decrease your overall portfolio volatility.
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