Draftkings Inc Intrinsic Value – DraftKings Reaches Inflection Point, Receives Rating Upgrade
December 9, 2023
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DRAFTKINGS ($NASDAQ:DKNG): DraftKings Inc., a fantasy sports and sports betting platform, is on the cusp of an inflection point, having recently received a ratings upgrade. DraftKings is a leading provider of daily fantasy sports (DFS), changes in state laws have enabled the company to extend its services to offer sportsbook and online casino gaming as well. With the aim of becoming the world’s largest online gaming company, DraftKings has recently received an upgrade by Moody’s Investor Services, with the outlook for the company turning positive. In recent months, DraftKings’ revenues and user base have grown exponentially due to its successful expansion into iGaming. With more states legalizing online gambling, DraftKings continues to gain traction in the market. The company is expanding its product offerings as well as its geographical reach, which has further strengthened its position as a market leader.
Additionally, the company is leveraging its strong brand awareness to drive customer acquisition, with partnerships with major sports leagues and teams helping to drive revenue growth. The ratings upgrade by Moody’s Investor Services is reflective of the strong progress that DraftKings has made over the past few months. The increase in user numbers and revenue streams has provided the company with a solid foundation to grow further. With the support of institutional investors, DraftKings has been able to take advantage of the changing regulatory environment to become one of the leading gaming companies in the US. DraftKings is now at an inflection point in its journey, having received a ratings upgrade that will help it tap into new sources of capital and expand even further. The company is well-positioned to capitalize on the opportunities that come with further liberalization of the online gaming market, and investors are optimistic that the company is set for even greater success in the coming years.
Market Price
On Thursday, DRAFTKINGS INC stock opened at $36.0 and closed at $35.4, down by 1.7% from its previous closing price of 36.0. Despite this minor decline in stock price, analysts are still bullish on the company. They believe that the stock has reached an inflection point, as evidenced by the upgrade of the company’s rating on Wednesday.
The upgrade to a “buy” rating was given by analysts at Stifel, who noted that the company’s recent growth has been impressive and that its long-term prospects look strong. As the usage of sports betting and daily fantasy sports increases, the company is well positioned to capitalize on these trends and continue its growth trajectory. 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
GoodWhale provides an in-depth analysis of DRAFTKINGS INC financials to help investors make more informed decisions. According to our proprietary Valuation Line, the intrinsic value of DRAFTKINGS INC share is around $67.6. However, the current stock price is only $35.4, which represents an undervaluation of 47.7%. This suggests that DRAFTKINGS INC stock is a potentially great investment opportunity. Investors should research further to make sure they can handle any risks associated with investing in this company. More…
Peers
The competition between online gaming companies is fierce. Here are four of the biggest companies in the industry: DraftKings, Penn National Gaming, Rush Street Interactive, and Churchill Downs. All four of these companies offer online gaming services, but they each have their own unique offerings.
– Penn National Gaming Inc ($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
Investing analysis in DRAFTKINGS INC. has reached an inflection point, signaling a potential upgrade in rating. Recent financial data indicates that the company is performing well, showing strong revenue growth and positive cash flow. Moreover, the industry environment is likely to remain favorable for DraftKings’ growth prospects. Its current operations have proven to be efficient, and financial metrics are indicating a potential for future expansion.
With the company’s focus on customer experience, technology development, and trend-setting product offerings, long-term investors may find DraftKings a good investment opportunity. Recently, DraftKings announced the launch of new products and services, potentially providing more upside to investors. Its potential for long-term success is strong, making it a buy-and-hold stock among growth and value investors.
