DraftKings Inc. (DKNG) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Consumer Cyclical · Gambling
Is DraftKings Inc. a safe investment right now?
DraftKings Inc.'s Altman Z-Score of 1.07 places it in the distress zone. Fair value estimate is not available for this stock. Moat rating: 2.9/5 stars.
Could DraftKings Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.07 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives DKNG's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0131 | 1.2 | 0.02 |
| B · Retained Earnings / Total Assets | RE / TA | -1.4208 | 1.4 | -1.99 |
| C · EBIT / Total Assets | EBIT / TA | -0.0035 | 3.3 | -0.01 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.8567 | 0.6 | 1.71 |
| E · Revenue / Total Assets | Rev / TA | 1.3363 | 1.0 | 1.34 |
How has DKNG's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 0.31 | Distress |
| 2023 | 0.47 | Distress |
| 2024 | 0.55 | Distress |
| 2025 | 1.07 | Distress |
Source: Calculated from DKNG's latest 10-K filing on SEC EDGAR.
What is DraftKings Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does DraftKings Inc. have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up DKNG's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is DKNG's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -56.0% | — |
| 2023 | -37.7% | Rising |
| 2024 | -26.9% | Rising |
| 2025 | -0.6% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is DraftKings Inc.'s dividend safe?
DraftKings Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $6.1B | $4.8B | $2.2B | Rising |
| Net Income | $0.0B | −$0.5B | −$1.4B | Rising |
| Free Cash Flow | $0.5B | $0.3B | −$0.7B | Rising |
| Gross Margin | 41.2% | 38.1% | 33.8% | Rising |
Recent events that affect our DKNG analysis
DKNG earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.19. Revenue estimate: $1.65B.
DKNG analyst consensus: 80% bullish (28 of 35 analysts)
5 Strong Buy, 23 Buy, 7 Hold, 0 Sell, 0 Strong Sell. Consensus target: $35.21 (56.7% upside).
DKNG filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG missed EPS estimates by 12.5%
Reported EPS: $0.36 vs estimate $0.41.
DKNG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG missed EPS estimates by 1.9%
Reported EPS: $-0.26 vs estimate $-0.26.
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG missed EPS estimates by 6.3%
Reported EPS: $0.38 vs estimate $0.41.
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG missed EPS estimates by 2.4%
Reported EPS: $0.12 vs estimate $0.12.
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DKNG filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DKNG missed EPS estimates by 59.1%
Reported EPS: $-0.28 vs estimate $-0.18.
Common questions about DraftKings Inc.
What is DraftKings Inc. stock price today?
DraftKings Inc. (DKNG) stock price is $22.47 as of the latest market close, traded on the NASDAQ exchange.
What does DraftKings Inc. do?
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks.
What is DraftKings Inc. market cap?
DraftKings Inc. has a market capitalization of $11.14B, classifying it as a large-cap stock in the Consumer Cyclical sector.
What sector and industry is DKNG in?
DraftKings Inc. operates in the Consumer Cyclical sector, specifically within the Gambling industry. It trades on the NASDAQ under the ticker symbol DKNG.
Is DKNG stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for DraftKings Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is DKNG stock forecast and analyst target price?
Based on 34 Wall Street analysts, the consensus price target for DraftKings Inc. is $35.21, implying upside of 56.7% from the current price.
- Analyst High Target: $76.00
- Analyst Low Target: $24.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is DraftKings Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for DraftKings Inc.:
- Revenue growth (current year est.): 13.2%
- EPS growth (current year est.): 64.7%
- Revenue growth (next year est.): 13.6%
- EPS growth (next year est.): 62.2%
What are DraftKings Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $6.1B | Rising |
| Net Income | $0.0B | Rising |
| Free Cash Flow | $0.5B | Rising |
| Gross Margin | 41.2% | Rising |
What is DKNG's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 12.8x
How volatile is DKNG stock?
DraftKings Inc. has a beta of 1.67, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does DraftKings Inc. have?
DraftKings Inc.'s balance sheet shows:
- Total Cash: $1.13B
- Total Debt: $1.89B
- Net Cash Position: $-762.3M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is DraftKings Inc.'s free cash flow?
DraftKings Inc. generated $605.9M in trailing twelve-month free cash flow (from $662.9M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does DraftKings Inc. pay a dividend?
DraftKings Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is DraftKings Inc. at risk of going bankrupt?
DraftKings Inc.'s Altman Z-Score is 1.07, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does DraftKings Inc. have a durable competitive advantage?
DraftKings Inc. scores 2.9/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is DKNG's return on equity (ROE)?
DraftKings Inc.'s return on equity is 0.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy DKNG stock?
DKNG shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol DKNG
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is DKNG a value stock or speculative?
FairValueLabs classifies DraftKings Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of DraftKings Inc.?
The current CEO of DraftKings Inc. is Mr. Jason D. Robins.
What is DKNG's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.01
- Forward EPS (next 12 months est.): $1.76
- Analyst consensus EPS (this year): $1.09
- Analyst consensus EPS (next year): $1.76
Other Consumer Cyclical companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
DKNG analysis methodology: How we calculate fair value, Z-Scores, and moat ratings