Gambling, Resorts & Casinos · NASDAQ
Current Price
$24.91
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on DraftKings Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states. Its Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states. The company's daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. In addition, it offers DraftKings Marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions, as well as owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.
ROIC (TTM)
1.0%
ROE (TTM)
7.9%
FCF Yield
5.49%
Based on trailing twelve-month data, DKNG shows a free cash flow per share of N/A and a ROIC of 1.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.49% are important context metrics when evaluating DKNG's stock valuation relative to peers.
The intrinsic value of DKNG depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether DKNG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $24.91. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on DraftKings Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Gambling, Resorts & Casinos industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DKNG's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For DraftKings Inc., this means projecting how much free cash flow the Gambling, Resorts & Casinos will produce over the next 5-10 years, then discounting those amounts to today's dollars. DKNG's ROIC of 1.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DKNG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
