Upside case
Bull case
$2-91.7%
The bull case prices DKNG at 9x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
DraftKings Inc. (DKNG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
48
analysts
35 bullish · 4 bearish · 48 covering DKNG
Strong Buy
0
Buy
35
Hold
9
Sell
4
Strong Sell
0
Consensus Target
$36
+35.5% vs today
Scenario Range
$1 – $2
Model bear to bull value window
Coverage
48
Published analyst ratings
Valuation Context
111.8x
Forward P/E · Market cap $13.1B
DKNG price targets
Three scenarios for where DKNG stock could go
Current
~$26
Confidence
65 / 100
Updated
Jun 18, 2026
Where we are now
Current · $26
Bear
$1
Base
$2
Bull
$2
Market caseClosest to today
Base case
$2-93.7%
At 7x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$1-96.0%
If investor confidence fades or macro conditions deteriorate, a 107x multiple contraction could push DKNG down roughly 96% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
DraftKings Inc.
DKNG · NASDAQConsumer CyclicalGambling, Resorts & CasinosDecember year-end
DraftKings is a leading digital sports entertainment and online gambling platform in the United States. It generates revenue primarily from its online sportsbook (roughly 70% of revenue), daily fantasy sports contests, and iGaming operations — all of which take a percentage of player wagers as the house. The company's competitive advantage lies in its first-mover brand recognition, sophisticated technology platform, and extensive database of engaged sports fans that creates powerful cross-selling opportunities.
Market Cap
$13.1B
Revenue TTM
$6.3B
Net Income TTM
$59M
Net Margin
0.9%
DKNG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
42%Exceptional
vs consensus estimates
Avg EPS Surprise
+154.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$0.30/$0.15
Revenue
$1.5B/$1.4B
Q4 2025
EPS
$-0.26/$-0.43
Revenue
$1.1B/$1.2B
Q1 2026
EPS
$0.25/$0.26
Revenue
$2.0B/$2.0B
Q2 2026
EPS
$0.04/$0.00
Revenue
$1.6B/$1.6B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.30/$0.15 | +98.3% | $1.5B/$1.4B | +6.2% |
| Q4 2025 | $-0.26/$-0.43 | +39.7% | $1.1B/$1.2B | -5.0% |
| Q1 2026 | $0.25/$0.26 | -2.0% | $2.0B/$2.0B | -0.0% |
| Q2 2026 | $0.04/$0.00 | +1365.2% | $1.6B/$1.6B | +0.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.9B
+9.7% YoY
FY2
$7.5B
+9.1% YoY
EPS Outlook
FY1
$-0.03
-127.1% YoY
FY2
$0.09
+410.4% YoY
Trailing FCF (TTM)$679M
FCF Margin: 10.8%
Next Earnings
August 5, 2026
Expected EPS
$0.34
Expected Revenue
$1.6B
DKNG beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
DKNG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $423M
Product Mix
Latest annual revenue by segment or product family
Product and Service, Other
100.0%
+18.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
97.4%
+26.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Product and Service, Other is the largest disclosed segment at 100.0% of FY 2025 revenue, up 18.4% YoY.
UNITED STATES is the largest reported region at 97.4%, up 26.8% YoY.
DKNG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $11 — implies -58.4% from today's price.
Premium to Fair Value
58.4%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DKNG
-3258.0x
vs
S&P 500
24.4x
13426% discount
vs Consumer Cyclical Trailing P/E
DKNG
-3258.0x
vs
Consumer Cyclical
21.2x
15502% discount
vs DKNG 5Y Avg P/E
Today
-3258.0x
vs
5Y Average
—
Benchmark unavailable
Forward PE
111.8x
S&P 500
18.8x
+494%
Consumer Cyclical
16.3x
+585%
5Y Avg
—
—
Trailing PE
-3258.0x
S&P 500
24.4x
-13426%
Consumer Cyclical
21.2x
-15502%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Consumer Cyclical
0.92x
—
5Y Avg
—
—
EV/EBITDA
51.7x
S&P 500
15.2x
+240%
Consumer Cyclical
12.2x
+324%
5Y Avg
67.1x
-23%
Price/FCF
20.2x
S&P 500
20.7x
-2%
Consumer Cyclical
15.6x
+30%
5Y Avg
35.2x
-43%
Price/Sales
2.2x
S&P 500
3.1x
-30%
Consumer Cyclical
0.7x
+210%
5Y Avg
4.4x
-50%
Dividend Yield
—
S&P 500
1.91%
—
Consumer Cyclical
2.17%
—
5Y Avg
—
—
| Metric | DKNG | S&P 500 | Consumer Cyclical | 5Y Avg DKNG |
|---|---|---|---|---|
| Forward PE | 111.8x | 18.8x+494% | 16.3x+585% | — |
| Trailing PE | -3258.0x | 24.4x-13426% | 21.2x-15502% | — |
| PEG Ratio | — | 1.66x | 0.92x | — |
| EV/EBITDA | 51.7x | 15.2x+240% | 12.2x+324% | 67.1x-23% |
| Price/FCF | 20.2x | 20.7x | 15.6x+30% | 35.2x-43% |
| Price/Sales | 2.2x | 3.1x-30% | 0.7x+210% | 4.4x-50% |
| Dividend Yield | — | 1.91% | 2.17% | — |
DKNG trades above S&P 500 benchmarks on 2 of 5 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDKNG Financial Health
Verdict
Adequate
DKNG generates $679M in free cash flow at a 10.8% margin — returns 6.3% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.3B
Revenue Growth
TTM vs prior year
+25.8%
Gross Margin
Gross profit as a share of revenue
41.8%
Operating Margin
Operating income divided by revenue
0.6%
Net Margin
Net income divided by revenue
0.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.11
Free Cash Flow (TTM)
Cash generation after capex
$679M
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-0.9%
ROA
Return on assets, trailing twelve months
1.3%
Cash & Equivalents
Liquid assets on the balance sheet
$1.6B
Net Debt
Total debt minus cash
$330M
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.5× FCF
~0.5 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
7.9%
* Elevated by buyback-compressed equity — compare ROIC (-0.9%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.3%
Dividend
—
Buyback
6.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$829M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
496M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageDKNG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Valuation risk
DKNG's current price remains significantly higher than earnings despite the recent retreat from 2021 highs.
High Risk
Competitive pressure
Rising competition from prediction-market platforms like Kalshi and Polymarket poses a threat to DKNG's market share.
Medium
Regulatory risks
Legal restrictions and gambling regulations (e.g., age and location requirements) could limit growth opportunities.
Medium
Profitability concerns
Despite nearing profitability, DKNG's historical lack of GAAP-positive net income raises sustainability questions.
Lower
Market saturation
The sports betting and online casino market may face saturation, impacting DKNG's ability to maintain high growth rates.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DKNG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Rapid revenue growth
The company is experiencing rapid revenue growth, driven by strong demand for its sports betting and casino platform.
Expanding EBITDA margins
DraftKings is showing expanding EBITDA margins, indicating improving profitability and operational efficiency.
Disciplined expense management
The company has demonstrated disciplined expense management, contributing to its path toward profitability.
Legalization tailwinds
Ongoing legalization of sports betting in new states provides significant growth opportunities for DraftKings.
Strong profitability guidance
The company has provided strong long-term profitability guidance, boosting investor confidence.
Industry leadership
DraftKings is a leader in security, game variety, and player rewards, offering a seamless user experience.
Profitability inflection point
The company is nearing a profitability inflection point, with Q4 results showing real operating leverage.
Institutional and insider confidence
Increased insider buying and high institutional ownership of the float signal strong confidence in DraftKings' future.
Market expansion potential
The bull case suggests significant upside potential, with predictions of near-doubling in share price within 12 months.
Premium platform offering
DraftKings' #1 rated sports betting platform and premium casino games attract a large and engaged user base.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DKNG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$26.39
52W Range Position
21%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$20.46
+29.0% from the low
52-Week High
$48.78
-45.9% from the high
1 Month
+2.37%
3 Month
+4.39%
YTD
-26.0%
1 Year
-33.4%
3Y CAGR
+2.1%
5Y CAGR
-11.3%
10Y CAGR
+10.4%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DKNG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
111.8x
vs 27.9x median
+301% above peer median
Revenue Growth
+9.7%
vs +8.3% median
+17% above peer median
Net Margin
0.9%
vs -2.7% median
+135% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DKN DKNG DraftKings Inc. | $13.1B | 111.8x | +9.7% | 0.9% | Buy | +35.5% |
FLU FLUT Flutter Entertainment plc | $17.7B | 17.8x | +9.7% | -2.7% | Buy | +85.5% |
RSI RSI Rush Street Interactive, Inc. | $3.1B | 48.4x | +14.4% | 3.0% | Buy | +4.5% |
PEN PENN PENN Entertainment, Inc. | $2.8B | 28.3x | +8.3% | -12.1% | Buy | -3.4% |
MGM MGM MGM Resorts International | $12.0B | 27.5x | +5.7% | 1.0% | Buy | -7.7% |
CZR CZR Caesars Entertainment, Inc. | $6.0B | — | +5.1% | -4.2% | Hold | +5.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
DKNG Dividend and Capital Return
DKNG returns 6.3% annually — null% through dividends and 6.3% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
6.3%
Dividend + buyback return per year
Buyback Yield
6.3%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$829M
Estimated Shares Retired
31M
Approx. Share Reduction
6.3%
Shares Outstanding
Current diluted share count from the screening snapshot
496M
At 6.3%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsDKNG Investor Questions
Common questions answered from live analyst data and company financials.
01Is DraftKings Inc. (DKNG) stock a buy or sell in 2026?
DraftKings Inc. (DKNG) is rated Buy by Wall Street analysts as of 2026. Of 48 analysts covering the stock, 35 rate it Buy or Strong Buy, 9 rate it Hold, and 4 rate it Sell or Strong Sell. The consensus 12-month price target is $36, implying +35.5% from the current price of $26. The bear case scenario is $1 and the bull case is $2.
02What is the DKNG stock price target for 2026?
The Wall Street consensus price target for DKNG is $36 based on 48 analyst estimates. The high-end target is $49 (+85.7% from today), and the low-end target is $26 (-1.5%). The base case model target is $2.
03Is DraftKings Inc. (DKNG) stock overvalued in 2026?
DKNG trades at 111.8x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for DraftKings Inc. (DKNG) stock in 2026?
The primary risks for DKNG in 2026 are: (1) Valuation risk — DKNG's current price remains significantly higher than earnings despite the recent retreat from 2021 highs. (2) Competitive pressure — Rising competition from prediction-market platforms like Kalshi and Polymarket poses a threat to DKNG's market share. (3) Regulatory risks — Legal restrictions and gambling regulations (e. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is DraftKings Inc.'s revenue and earnings forecast?
Analyst consensus estimates DKNG will report consensus revenue of $6.9B (+9.7% year-over-year) and EPS of $-0.03 (-127.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.5B in revenue.
06When does DraftKings Inc. (DKNG) report its next earnings?
DraftKings Inc. is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $0.34 and revenue of $1.6B. Over recent quarters, DKNG has beaten EPS estimates 58% of the time.
07How much free cash flow does DraftKings Inc. generate?
DraftKings Inc. (DKNG) generated $679M in free cash flow over the trailing twelve months — a free cash flow margin of 10.8%. DKNG returns capital to shareholders through and share repurchases ($829M TTM).