Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing DKNG more generously than it does today.
Analysis OverviewBuyUpdated May 1, 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
$37
+54.2% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
48
Published analyst ratings
Valuation Context
94.0x
Forward P/E · Market cap $11.9B
DKNG price targets
Three scenarios for where DKNG stock could go
Current
~$24
Confidence
48 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
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
$11.9B
Revenue TTM
$6.1B
Net Income TTM
$4M
Net Margin
0.1%
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
50%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+41.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 3 of 4Q2 2025
EPS
$-0.07/$-0.08
Revenue
$1.4B/$1.4B
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $-0.07/$-0.08 | +9.7% | $1.4B/$1.4B | -1.4% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$7.6B
+25.4% YoY
FY2
$9.9B
+30.2% YoY
EPS Outlook
FY1
$0.64
— YoY
FY2
$1.88
+191.9% YoY
Trailing FCF (TTM)$612M
FCF Margin: 10.1%
Next Earnings
May 7, 2026
Expected EPS
$0.22
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
Overvalued
Fair value est. $16 — implies -29.4% from today's price.
Premium to Fair Value
29.4%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DKNG
-2953.1x
vs
S&P 500
25.2x
11805% discount
vs Consumer Cyclical Trailing P/E
DKNG
-2953.1x
vs
Consumer Cyclical
19.6x
15180% discount
vs DKNG 5Y Avg P/E
Today
-2953.1x
vs
5Y Average
—
Benchmark unavailable
Forward PE
94.0x
S&P 500
19.1x
+393%
Consumer Cyclical
15.2x
+519%
5Y Avg
—
—
Trailing PE
-2953.1x
S&P 500
25.2x
-11805%
Consumer Cyclical
19.6x
-15180%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.75x
—
Consumer Cyclical
0.95x
—
5Y Avg
—
—
EV/EBITDA
46.9x
S&P 500
15.3x
+208%
Consumer Cyclical
11.4x
+313%
5Y Avg
67.1x
-30%
Price/FCF
18.3x
S&P 500
21.3x
-14%
Consumer Cyclical
15.0x
+22%
5Y Avg
35.2x
-48%
Price/Sales
2.0x
S&P 500
3.1x
-37%
Consumer Cyclical
0.7x
+175%
5Y Avg
4.4x
-55%
Dividend Yield
—
S&P 500
1.88%
—
Consumer Cyclical
2.15%
—
5Y Avg
—
—
| Metric | DKNG | S&P 500 | Consumer Cyclical | 5Y Avg DKNG |
|---|---|---|---|---|
| Forward PE | 94.0x | 19.1x+393% | 15.2x+519% | — |
| Trailing PE | -2953.1x | 25.2x-11805% | 19.6x-15180% | — |
| PEG Ratio | — | 1.75x | 0.95x | — |
| EV/EBITDA | 46.9x | 15.3x+208% | 11.4x+313% | 67.1x-30% |
| Price/FCF | 18.3x | 21.3x-14% | 15.0x+22% | 35.2x-48% |
| Price/Sales | 2.0x | 3.1x-37% | 0.7x+175% | 4.4x-55% |
| Dividend Yield | — | 1.88% | 2.15% | — |
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 $612M in free cash flow at a 10.1% margin — returns 7.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.1B
Revenue Growth
TTM vs prior year
+27.0%
Gross Margin
Gross profit as a share of revenue
41.3%
Operating Margin
Operating income divided by revenue
-0.2%
Net Margin
Net income divided by revenue
0.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.01
Free Cash Flow (TTM)
Cash generation after capex
$612M
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.1%
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
0.1%
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
0.5%
* 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
7.0%
Dividend
—
Buyback
7.0%
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 April 29, 2026
High Risk
Regulatory and Legal Risks
DraftKings is under investigation by the SEC and IRS for allegations related to inadequate risk disclosures concerning its merger with SB Tech and operations in Iran. Additionally, the company faces SEC charges for violations of Regulation FD and a consumer class action lawsuit regarding a promotional offer, which could lead to significant financial penalties and operational constraints.
High Risk
Financial Performance and Valuation
DraftKings reported net losses of $844 million in 2020 and $346 million in the last quarter. Concerns about its path to profitability are heightened by a high debt-to-equity ratio and an Altman Z-Score indicating potential financial distress.
Medium
Competition
DraftKings faces intense competition from emerging prediction markets that offer fewer restrictions and benefit from free media coverage. This competition could impact DraftKings' market share and profitability in the rapidly evolving online gambling industry.
Medium
Operational and Integration Risks
The integration of DraftKings and SBTech may divert management's focus and resources, raising execution risks. The planned 'Super App' strategy also poses challenges regarding investment levels and operational execution.
Lower
Market and Shareholder Risks
Substantial sales of Class A common stock could negatively impact DraftKings' market price. Additionally, a loss of investor confidence in the sector could further depress the stock price, regardless of the company's operational performance.
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 April 29, 2026
Market Leadership and Expansion
DraftKings is a dominant player in the online sports betting and iGaming industries, holding significant market share in numerous states. The company is actively expanding its reach, including recent applications to launch in Alberta, Canada, making it its second Canadian province and 34th North American jurisdiction.
Prediction Market Potential
DraftKings is strategically positioning itself in the prediction market space, having acquired Railbird Technologies Inc. and its CFTC-regulated exchange subsidiary. This move aims to leverage the growing interest in prediction markets, with the company being one of the few with publicly declared intentions to create such a platform.
Financial Growth and Profitability
Analysts project significant earnings growth for DraftKings, with expectations of 46% EPS growth in 2026. Some forecasts suggest revenues could reach approximately $10.4 billion and earnings $2.0 billion by 2028.
Undervalued Opportunity
Despite its market position, DraftKings' stock has experienced recent declines, leading some analysts to believe it presents a compelling entry point. Some valuation models suggest the stock is significantly undervalued, with potential for substantial upside.
Analyst Consensus
The consensus rating among Wall Street analysts is largely positive, with a 'Moderate Buy' or 'Strong Buy' recommendation from a significant number of analysts. This positive sentiment reflects confidence in the company's growth trajectory.
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
$23.92
52W Range Position
12%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$20.46
+16.9% from the low
52-Week High
$48.78
-51.0% from the high
1 Month
+4.45%
3 Month
-10.14%
YTD
-32.9%
1 Year
-28.8%
3Y CAGR
-0.4%
5Y CAGR
-14.3%
10Y CAGR
+9.3%
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
94.0x
vs 22.5x median
+317% above peer median
Revenue Growth
+25.4%
vs +6.8% median
+273% above peer median
Net Margin
0.1%
vs -2.7% median
+102% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DKN DKNG DraftKings Inc. | $11.9B | 94.0x | +25.4% | 0.1% | Buy | +54.2% |
FLU FLUT Flutter Entertainment plc | $17.3B | 16.2x | +16.3% | -2.7% | Buy | +129.9% |
RSI RSI Rush Street Interactive, Inc. | $3.0B | 46.5x | +24.7% | 3.0% | Buy | +9.1% |
PEN PENN PENN Entertainment, Inc. | $2.2B | 22.9x | +6.4% | -12.1% | Buy | +18.7% |
MGM MGM MGM Resorts International | $9.8B | 22.2x | +6.8% | 1.0% | Buy | +3.9% |
CZR CZR Caesars Entertainment, Inc. | $5.7B | — | +5.8% | -4.2% | Buy | +10.1% |
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 7.0% annually — null% through dividends and 7.0% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
7.0%
Dividend + buyback return per year
Buyback Yield
7.0%
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
35M
Approx. Share Reduction
7.0%
Shares Outstanding
Current diluted share count from the screening snapshot
496M
At 7.0%/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 $37, implying +54.2% from the current price of $24.
02What is the DKNG stock price target for 2026?
The Wall Street consensus price target for DKNG is $37 based on 48 analyst estimates. The high-end target is $50 (+109.0% from today), and the low-end target is $24 (+0.3%).
03Is DraftKings Inc. (DKNG) stock overvalued in 2026?
DKNG trades at 94.0x 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 overvalued. 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) Regulatory and Legal Risks — DraftKings is under investigation by the SEC and IRS for allegations related to inadequate risk disclosures concerning its merger with SB Tech and operations in Iran. (2) Financial Performance and Valuation — DraftKings reported net losses of $844 million in 2020 and $346 million in the last quarter. (3) Competition — DraftKings faces intense competition from emerging prediction markets that offer fewer restrictions and benefit from free media coverage. 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 $7.6B (+25.4% year-over-year) and EPS of $0.64 for the upcoming fiscal year. The following year, analysts project $9.9B in revenue.
06When does DraftKings Inc. (DKNG) report its next earnings?
DraftKings Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $0.22 and revenue of $1.6B. Over recent quarters, DKNG has beaten EPS estimates 50% of the time.
07How much free cash flow does DraftKings Inc. generate?
DraftKings Inc. (DKNG) generated $612M in free cash flow over the trailing twelve months — a free cash flow margin of 10.1%. DKNG returns capital to shareholders through and share repurchases ($829M TTM).