Draftkings Inc Intrinsic Stock Value – DraftKings Outshines S&P 500 with 10% Return Since November Revision
January 28, 2023
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Draftkings Inc Intrinsic Stock Value – DRAFTKINGS ($NASDAQ:DKNG): DraftKings Inc., a fantasy sports entertainment company, has seen tremendous success since revising its rating in November. The stock has posted a return of over 10%, far outpacing the S& P 500’s 2% return over the same period. The company started out offering daily fantasy sports (DFS) and has since expanded to offer traditional sports betting and iGaming products. DraftKings’ recent success has been driven by a number of key factors. The company has made strategic acquisitions, such as SBTech and Penn National Gaming, which have allowed DraftKings to expand its product offerings and gain access to new markets. Additionally, DraftKings has taken advantage of the growing popularity of sports betting by increasing its presence in states with legalized sports betting.
In addition, the company has benefited from strong partnerships with major professional sports leagues, including the NFL and NBA. The stock’s impressive performance is also attributed to strong financials. It appears that DraftKings’ strong performance is likely to continue as the company expands its product offerings, gains access to more markets, and capitalizes on the growing popularity of sports betting in the US. With its strong financials, strategic acquisitions, and partnerships with major leagues, DraftKings is well-positioned to continue outperforming the S& P 500 in the coming months.
Share Price
DraftKings Inc. has been outperforming the S& P 500 since November, with a 10% return since the revision. On Monday, DRAFTKINGS stock opened at $14.0 and closed at $14.6, which is a 4.9% increase from the previous closing price of $13.9. This positive trend has been largely driven by favorable media coverage, with the majority of reports being positive in nature. Analysts have been optimistic about the company’s future prospects, with some predicting further upside for the stock. The company is also benefiting from its strong balance sheet, which has enabled it to invest in new products and growth opportunities.
It has also seen significant improvements in its top and bottom line metrics over the past year, indicating that the company is on track for continued success in the future. Overall, DRAFTKINGS Inc. has demonstrated strong performance since November and is expected to continue to outshine the S&P 500 in the upcoming months. With favorable media coverage and a solid balance sheet, the company looks well-positioned to capitalize on further growth opportunities in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Draftkings Inc. More…
| Total Revenues | Net Income | Net Margin |
| 1.86k | -1.46k | -81.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Draftkings Inc. More…
| Operations | Investing | Financing |
| -649.31 | -248.26 | -12.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Draftkings Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.19k | 2.76k | 3.2 |
Key Ratios Snapshot
Some of the financial key ratios for Draftkings Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 78.9% | – | -88.7% |
| FCF Margin | ROE | ROA |
| -41.3% | -64.4% | -24.6% |
VI Analysis – Draftkings Inc Intrinsic Stock Value
According to the Virtual Investor app, DRAFTKINGS INC’s fair value is estimated to be around $66.0, which is significantly higher than its current market price of $14.6 per share. This implies that the stock is undervalued by 78%. This makes it an attractive stock for investors looking for long term returns from undervalued stocks. The Virtual Investor app also provides a range of metrics to help investors assess the company’s financial performance and potential. These include metrics such as key financial ratios, book value per share, earnings per share, and return on equity. It can also provide an overview of the company’s past performance, providing insights into its long term prospects. Overall, DRAFTKINGS INC appears to be an attractive stock for investors looking for undervalued stocks with long term potential. The Virtual Investor app provides investors with the metrics they need to assess the company’s fundamentals and make an informed decision. More…
VI Peers
The competition between online gaming companies is fierce. Here are four of the biggest companies in the industry: DraftKings, Penn National Gaming, Rush Street Interactive, and Churchill Downs. All four of these companies offer online gaming services, but they each have their own unique offerings.
– Penn National Gaming Inc ($NASDAQ:PENN)
As of 2022, Penn National Gaming Inc has a market cap of 4.45B and a Return on Equity of 15.58%. Penn National Gaming Inc is a gaming and racing company that operates in the United States and Canada. The company owns and operates casinos, racetracks, and gaming facilities. Penn National Gaming also offers online gaming and sports betting services.
– Rush Street Interactive Inc ($NYSE:RSI)
Rush Street Interactive Inc is a gaming company that develops and operates online casino and sports betting platforms. The company has a market cap of 221.64M as of 2022 and a Return on Equity of -113.0%.
The company’s market cap is relatively small compared to other gaming companies, but its ROE is negative, meaning that it is not generating profit from its equity. The company’s main source of revenue is from its online casino and sports betting platforms.
– Churchill Downs Inc ($NASDAQ:CHDN)
Churchill Downs Incorporated is an American gambling and racing company based in Louisville, Kentucky. The company is best known for operating the famous Kentucky Derby, as well as the TwinSpires online betting platform. Churchill Downs also owns and operates several other racing venues and casinos across the United States.
The company has a market capitalization of $7.35 billion as of 2022 and a return on equity of 105.84%. Churchill Downs is one of the leading gambling and racing companies in the United States, with a strong presence in both the online and offline gaming markets. The company’s strong financial performance is driven by its diversified portfolio of gaming assets and its ability to generate strong cash flows from its operations.
Summary
Investing in DraftKings Inc. has proven to be a lucrative decision for shareholders in recent months. Media coverage of the stock has been largely positive, and the stock price has responded positively to news and announcements. With a strong performance since November and a promising outlook, DraftKings Inc. may be an attractive option for investors looking to make a smart move.
