DraftKings Inc (DKNG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
DraftKings Inc stock (DKNG) is currently trading at $21.42. DraftKings Inc PS ratio (Price-to-Sales) is 1.92. Analyst consensus price target for DKNG is $36.17. WallStSmart rates DKNG as Hold.
- DKNG PE ratio analysis and historical PE chart
- DKNG PS ratio (Price-to-Sales) history and trend
- DKNG intrinsic value — DCF, Graham Number, EPV models
- DKNG stock price prediction 2025 2026 2027 2028 2029 2030
- DKNG fair value vs current price
- DKNG insider transactions and insider buying
- Is DKNG undervalued or overvalued?
- DraftKings Inc financial analysis — revenue, earnings, cash flow
- DKNG Piotroski F-Score and Altman Z-Score
- DKNG analyst price target and Smart Rating
DraftKings Inc
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Smart Analysis
DraftKings Inc (DKNG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, price/sales. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
DraftKings Inc (DKNG) Key Strengths (6)
Growing significantly faster than its price suggests
Revenue surging 42.80% year-over-year
Earnings per share surging 184.60% year-over-year
88.25% of shares held by major funds and institutions
Large-cap company with substantial market presence
Paying $1.92 for every $1 of annual revenue
Supporting Valuation Data
DraftKings Inc (DKNG) Areas to Watch (4)
Very low returns on shareholder equity
Very thin margins with limited operational efficiency
Very expensive at 18.5x book value
Very thin margins, barely profitable
DraftKings Inc (DKNG) Detailed Analysis Report
Overall Assessment
This company scores 62/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.5/10) while 4 fall into concern territory (avg 1.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Revenue Growth, EPS Growth. Valuation metrics including PEG Ratio (0.08), Price/Sales (1.92) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 42.80%, EPS Growth at 184.60%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Price/Book. Some valuation metrics including Price/Book (18.48) suggest expensive pricing. Profitability pressure is visible in Return on Equity at 0.45%, Operating Margin at 8.29%, Profit Margin at 0.06%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 0.45% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 42.80% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Revenue Growth) and negatives (Return on Equity, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DKNG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DKNG's Price-to-Sales ratio of 1.92x trades at a deep discount to its historical average of 9.47x (0th percentile). The current valuation is 96% below its historical high of 44.36x set in Nov 2020, and 0% above its historical low of 1.92x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~3.6x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for DraftKings Inc (DKNG) · CONSUMER CYCLICAL › GAMBLING
The Big Picture
DraftKings Inc is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 6.1B with 43% growth year-over-year. Profit margins are thin at 0.1%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 43% YoY, reaching 6.1B. This pace significantly outperforms most GAMBLING peers.
Generating 317M in free cash flow and 320M in operating cash flow. Earnings are translating into actual cash generation.
ROE of 0.4% suggests the company isn't efficiently converting equity into profits.
Profit margin at 0.1% is thin. While this is common for high-growth companies, margins need to expand as growth naturally decelerates.
What to Watch Next
Margin expansion: can DraftKings Inc push profit margins above 15% as the business scales?
Growth sustainability: can DraftKings Inc maintain 43%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 1.68, so expect amplified moves relative to the broader market.
Sector dynamics: monitor GAMBLING industry trends, competitive moves, and regulatory changes that could impact DraftKings Inc.
Bottom Line
DraftKings Inc is a high-conviction growth story with revenue accelerating at 43% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 0.1% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(150 last 3 months)
| Insider | Type | Shares |
|---|---|---|
MOORE, JOCELYN Director | Sell | -2,150 |
| Insider | Type | Shares |
|---|---|---|
BRADBURY, ERIK Chief Accounting Officer | Sell | -7,268 |
Data sourced from SEC Form 4 filings
Last updated: 10:09:14 AM
About DraftKings Inc(DKNG)
NASDAQ
CONSUMER CYCLICAL
GAMBLING
USA
DraftKings Inc. is a digital sports entertainment and games company in the United States. The company is headquartered in Boston, Massachusetts.