DraftKings Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$37.50
Market Price
$19.87
Undervalued By
47.0%
Method: 10-year unlevered FCF DCF: $650.9M TTM FCF base; 20% annual FCF growth years 1-3; 12% years 4-6; 6% years 7-10; 10% discount rate; 3% terminal growth; -$932.1M net debt; 496.45M shares outstanding.
Reasoning: DraftKings has recently turned sustainably free-cash-flow positive as online sports betting matures and operating leverage improves, with further upside from additional state legalizations and its nascent prediction-markets product; a 10% discount rate reflects elevated regulatory, tax-rate, and competitive-intensity risk in online gaming.