Draftkings Inc Stock Intrinsic Value – DraftKings on Track for Positive EBITDA by 2024

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DRAFTKINGS ($NASDAQ:DKNG): DraftKings Inc, the daily fantasy sports and sports betting platform, is on track to turn a positive EBITDA (earnings before interest, taxes, depreciation and amortization) by 2024. This could open the door to a potential transaction in the same year. DraftKings is a leading digital sports entertainment and gaming company, offering daily and weekly fantasy sports competitions as well as sports betting across multiple states. The company has been very successful in developing and marketing its product, as well as in achieving growth in its user base and revenues. It has also been making investments in its technology and infrastructure to ensure a smooth customer experience. Achieving positive EBITDA will enable the company to enter transactions and expand its operations.

This will allow DraftKings to further invest in marketing and technology so that it can continue to expand its customer base. DraftKings has recently taken steps to further strengthen its financial position by issuing new stock and raising debt financing. This is expected to enable the company to meet its goals of achieving positive EBITDA by 2024 and allowing it to be eligible for a transaction by then. If successful, this could open up a new chapter for the company as it would be positioned for even greater success. For now, DraftKings is focused on remaining a leader in the daily fantasy sports and sports betting industry, and achieving positive EBITDA by 2024 will bring it one step closer to this goal.

Share Price

On Thursday, DRAFTKINGS INC stock opened at $34.6 and closed at $35.1, up by 2.4% from its last closing price of 34.3. This indicates that the company is on track to reach positive EBITDA in 2024, as projected by its management. It is possible that the market is taking the company’s projections into account and responding favorably to the news, which was released recently. The company has been making significant investments in order to reach profitability and its focus on the digital gaming space will likely aid it in achieving its goal.

Investors are likely taking this into account and are betting on the future potential of the company. By 2024, if the projections are correct, DRAFTKINGS INC could be in a much stronger position than it currently is. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Draftkings Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Draftkings Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Draftkings Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Draftkings Inc are shown below. More…

Analysis – Draftkings Inc Stock Intrinsic Value

GoodWhale’s insights have revealed that DRAFTKINGS INC has great potential to become a profitable stock. Our proprietary Valuation Line values DRAFTKINGS INC’s share at around $62.6. This indicates that the stock is currently trading at $35.1 which is undervalued by 43.9%. All in all, DRAFTKINGS INC is an attractive option for investors who have faith in the company’s ability to deliver long-term profits and returns. With the Valuation Line as a guide, investors can make informed decisions about their investments in DRAFTKINGS INC. 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

DraftKings Inc. is an American daily fantasy sports platform. In 2024, recent analysis suggests that the company is likely to become profitable, with an expected positive EBITDA. This could lead to a transaction, such as a merger or acquisition, which could potentially increase the value of the company. Investors should consider researching the company and its plans for the future to assess the possible profitability of investing in DraftKings.