Draftkings Inc Intrinsic Stock Value – DraftKings Sees Potential for Expansion as Massachusetts Legalizes Sports Betting at Retail Sportsbooks.
January 31, 2023
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Draftkings Inc Intrinsic Stock Value – DRAFTKINGS ($NASDAQ:DKNG): DraftKings Inc. is a leading digital sports entertainment and gaming company that provides users with daily fantasy sports, sports betting, and online casino games. The company’s mission is to bring fans closer to the sports they love and create a new, more engaging way to play. DraftKings Inc. has established itself as one of the premier digital sports entertainment companies in the world, and is now looking to capitalize on Massachusetts’ move to legalize sports betting at retail sportsbooks. At the end of January, Massachusetts will be legalizing sports betting at retail sportsbooks, with the Wynn Resorts Encore Boston Harbor, the Plainridge Park Casino, and the MGM Resorts Springfield casino first to offer the service. Although Massachusetts is not a large state or gambling market, its move could be an indication of a wider movement towards legalization and regulation in other states. This creates potential for further expansion for DraftKings Inc. as more states look to legalize sports betting.
DraftKings Inc. has been at the forefront of offering innovative products that allow users to engage in fantasy sports and sports betting with ease, and the company is well-positioned to capitalize on opportunities in Massachusetts and other states. The company’s mobile app, which allows users to enter contests, track their progress and view real-time scores and stats, has been very successful in recent years, and this could help DraftKings Inc. in its expansion into Massachusetts and other states. The legalization of sports betting in Massachusetts presents a new opportunity for DraftKings Inc. to grow its customer base and expand its services into yet another state. With more states likely to follow suit in the coming years, DraftKings Inc. could be poised to take advantage of the new market and expand its offerings even further.
Share Price
The news sentiment has mostly been positive, which could bode well for the company’s future. On Monday, DRAFTKINGS INC opened at $14.9 and closed at $14.6, down by 2.6% from the previous closing price of 15.0. The move was prompted by the state’s Gaming Commission’s decision to approve the DraftKings-branded sportsbook at Plainridge Park Casino in Plainville, Massachusetts. This makes the company the first to successfully gain approval for a retail sportsbook in the state and is likely to benefit them in the near future. It also marks a major milestone for the company, which had previously been limited to offering online sports betting and daily fantasy sports in the state. The move by Massachusetts to legalize sports betting is likely to have a positive impact on DraftKings Inc. and could potentially result in further expansion of their services. With this step taken, other states may also be encouraged to do the same and open up their markets to sports betting and DraftKings Inc. This could potentially lead to increased revenues and profits for the company in the long run.
Additionally, it could also mean additional jobs created in the industry as well as more opportunities for sports fans to enjoy their favorite sports in a more legal way. 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
DraftKings Inc’s long term potential is made easy to analyze with the help of VI app, which takes into account the company’s fundamentals. Through VI’s proprietary VI Line, the fair value of the company’s share is estimated to be around $65.8. Currently, the market price of the share is $14.6, which indicates it is undervalued by 77.8%. This means that investors can potentially benefit from buying the stock at its current price and benefiting from the upside potential in the long run. Furthermore, looking at other metrics such as beta, debt-to-equity ratio and price-to-book ratio, DraftKings Inc looks attractive for investors. The company has high liquidity, low debt and a favorable capital structure which are all positive signs for its long term potential. The company’s financials have been solid with revenue growth rate being quite steady over the last few years. Additionally, with the increasing popularity of fantasy sports, DraftKings Inc’s future looks promising. All in all, DraftKings Inc looks like an attractive long term investment option. With a relatively low current market price and strong fundamentals, investors can benefit from the upside potential of this stock in the long run. More…
VI Peers
The competition between online gaming companies is fierce. Here are four of the biggest companies in the industry: DraftKings, Penn National Gaming, Rush Street Interactive, and Churchill Downs. All four of these companies offer online gaming services, but they each have their own unique offerings.
– Penn National Gaming Inc ($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
DraftKings Inc. has seen potential for growth and expansion with the recent legalization of sports betting at retail sportsbooks in the state of Massachusetts. Investors are optimistic about the company’s prospects, as its market share and customer base are expected to grow in response to the new regulations. Its stock price has seen a significant increase since the news first broke, and analysts suggest that it could continue to rise as more states legalize sports betting. The company is well-positioned to benefit from the expected growth in this sector, and investors should look closely at DraftKings Inc. as a potential opportunity.
