Stock analysis · Bull Rankings model

DKNG analysis

DraftKings Inc.Gambling. Scored on the same transparent model behind the daily rankings.

Sports Betting & Gaming
DKNG
DraftKings Inc. · Gambling
FCF$651mC+
Rev+15.0%B+
D/E3.36C
P/S2.1xC+
PEG0.11A
47.8Score
$25.97$12.9B
1Y Target$34.98Analyst consensus · 35 analysts
5Y Target$61.18Compound horizon
10Y Target$109.34Long-dated conviction
FCF$651mTTM
C+
FCF $651m — respectable but not differentiating
Rev+15.0%TTM YoY
B+
Revenue +15.0% — above sector median, healthy trajectory
D/E3.36
C
D/E 3.36 — more levered than most Consumer Cyclical peers (≈90th pctile)
P/S2.1x
C+
P/S 2.1x — above the Consumer Cyclical median (≈75th pctile)
PEG0.11
A
PEG 0.11 — exceptional; paying well under fair value for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 47.8
Quality25.8
Growth50.0
Value85.0
Why this score
  • Diluting shareholders
  • Cyclical growth
Entry · Margin of safety
52-week rangeNear 52-week low
47% off the 12-month high
vs DCF fair value27% aboveest. fair value ~$20
What the price assumes: free cash flow compounding at ~22% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability59% · Agross profit ÷ total assets (Novy-Marx)
ROIC-25.3% · Freturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Gambling · market cap $12.9b. Down 47% from 52-week high of $48.78 — deep drawdown territory. Revenue growing +15%, comfortably above the S&P median. PEG 0.11 — paying under fair value for the growth rate. 35 sell-side analysts rate this a Buy with a mean 1-yr target of $34.98 (implying +35% upside).
Moat
Turnaround / out-of-favor name — GAAP-unprofitable for now, so the durability case is forward-looking: it rests on a recovery (margin normalization, a cyclical upturn or restructuring) or an un-monetized asset (IP / network effects / first-mover position) rather than on current reported results.
Risk
D/E 3.36 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Currently unprofitable (margin -2.7%) — path to GAAP profitability is the core thesis risk. Down 47% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon
1-3 yr $34.98 (35-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $61.18 — requires the platform / technology to reach commercial scale. 10 yr $109.34 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

DKNG vs the Top Picks average

PillarDKNGBook avgDiff
Quality0.260.84-0.58
Growth0.500.87-0.37
Value0.850.76+0.09

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-8.1 over 48 daily scores
From 55.9 (Jun 22) → 47.8 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-4.7%
90-day change-5.2%
Forward EPS estimate$1.62

Over the last 90 days, what analysts expect DKNG to earn is materially lower (-5.2%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
77
Position size
$2,000
4.0% of portfolio
Stop price
$19.48
25% below $25.97
$ at risk if stopped
$499.92
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

DraftKings Inc. (DKNG): score, valuation & FAQ

DraftKings Inc. (DKNG) is a Gambling company that scores 47.8 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A) and Rev (B+). On valuation, DKNG sits about 27% above our discounted-cash-flow fair value — the current price implies roughly 22% annual free-cash-flow growth over the next decade.

Is DKNG a good stock to buy?

Bull Rankings scores DKNG 47.8 out of 100 on its quality-growth model, which is a below-average reading. That is driven by PEG (A) and Rev (B+). A score is a quantitative screen of DraftKings Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does DKNG score 47.8 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DKNG earns its highest marks on PEG (A) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is DKNG overvalued or undervalued?

Based on $25.97, DKNG sits about 27% above our discounted-cash-flow fair value — the current price implies roughly 22% annual free-cash-flow growth over the next decade. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in DKNG?

D/E 3.36 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Currently unprofitable (margin -2.7%) — path to GAAP profitability is the core thesis risk. Down 47% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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