Draftkings Inc Intrinsic Value Calculation – DraftKings Breaks Records in Massachusetts Betting Scene in October
December 11, 2023
🌥️Trending News
DRAFTKINGS ($NASDAQ:DKNG): DraftKings Inc., the daily sports betting and online gaming company, has been making waves in the Massachusetts betting scene lately. Last month, they achieved an outstanding success and set records in terms of sports betting in the region. DraftKings is best known for its daily fantasy sports and sports betting services, as well as its online casino offerings. The company has grown significantly over the years and currently operates in several states including New Jersey, West Virginia, and Pennsylvania. It is also the first and only operator to offer mobile sports betting in New York. The record-breaking success in Massachusetts last month was attributed to the company’s innovative approach to sports betting.
From the introduction of a new mobile app to the launch of various promotions and new products, DraftKings has been able to capture a greater market share in the region. This is evident from the fact that it has quickly become one of the most popular operators in the state. It is clear that DraftKings is making a name for itself in the sports betting industry. With its strong presence in several states and a continued commitment to innovation, it is likely that the company will continue to push the boundaries of what is possible in this growing market. It will be interesting to see what new records DraftKings will be able to set in the future.
Price History
October was an exciting month for DRAFTKINGS INC as they broke records in the Massachusetts betting scene. On Friday of that month, DRAFTKINGS stock opened at $37.5 before closing at $38.4 — a rise of 2.8% from the prior closing price of $37.3. 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 |
| 3.29k | -1k | -29.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Draftkings Inc. More…
| Operations | Investing | Financing |
| -222.28 | -103.75 | -50.4 |
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 |
| 3.86k | 3.06k | 1.72 |
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 |
| 98.1% | – | -29.9% |
| FCF Margin | ROE | ROA |
| -10.5% | -67.6% | -15.9% |
Analysis – Draftkings Inc Intrinsic Value Calculation
At GoodWhale, we have done an analysis of DRAFTKINGS INC‘s financials and have come up with a fair value of approximately $70.2 per share using our proprietary Valuation Line. Currently, the stock is trading at $38.4, which represents an undervaluation of 45.3%. This means that investors who purchase the stock at this price can benefit from the potential upside as it rises to its fair value. With this in mind, we recommend that investors consider taking advantage of this undervalued opportunity and purchase the stock now while it is still significantly discounted from its potential fair value. More…
Peers
The competition between online gaming companies is fierce. Here are four of the biggest companies in the industry: DraftKings, Penn National Gaming, Rush Street Interactive, and Churchill Downs. All four of these companies offer online gaming services, but they each have their own unique offerings.
– Penn National Gaming Inc ($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
With such a strong performance and continued growth potential, DraftKings is definitely worth considering for investment purposes.
