Key Factors to Evaluate Before Investing in DraftKings (DKNG)

By Emilio Sanchez • Saturday, January 11 15:15 • Permanent Link

With gains of 3.0%, DraftKings was one of the winners on Wall Street today. Its shares are now trading at $39.49 and have logged a -2.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

DraftKings has moved 17.3% over the last year, and the S&P 500 logged a change of 22.3%
DKNG has an average analyst rating of buy and is -22.77% away from its mean target price of $51.13 per share
Its trailing earnings per share (EPS) is $-0.87
DraftKings has a trailing 12 month Price to Earnings (P/E) ratio of -45.4 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $0.57 and its forward P/E ratio is 69.3
The company has a Price to Book (P/B) ratio of 17.88 in contrast to the S&P 500's average ratio of 4.74
DraftKings is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.6 and an average P/B of 3.19
The company has a free cash flow of $453.89 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. The company was founded in 2012 and is headquartered in Boston, Massachusetts.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.