DraftKings Inc. (DKNG)’s valuation ratios: A closer look

The closing price of DraftKings Inc. (NASDAQ: DKNG) was $38.68 for the day, up 0.81% from the previous closing price of $38.37. In other words, the price has increased by $+0.31 from its previous closing price. On the day, 11009741 shares were traded. DKNG stock price reached its highest trading level at $39.06 during the session, while it also had its lowest trading level at $38.24.

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Our analysis of DKNG’s different ratios will help us gain a deeper understanding of the company. For the most recent quarter (mrq), Quick Ratio is recorded 1.29 and its Current Ratio is at 1.29. In the meantime, Its Debt-to-Equity ratio is 1.67 whereas as Long-Term Debt/Eq ratio is at 1.66.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Nov 08 when Robins Jason sold 500,000 shares for $35.83 per share. The transaction valued at 17,915,000 led to the insider holds 3,531,898 shares of the business.

Dodge R Stanton sold 105,554 shares of DKNG for $3,780,944 on Nov 08. The Chief Legal Officer now owns 652,984 shares after completing the transaction at $35.82 per share. On Nov 06, another insider, Kalish Matthew, who serves as the insider of the company, sold 105,660 shares for $34.26 each. As a result, the insider received 3,619,912 and left with 2,820,182 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, DKNG now has a Market Capitalization of 17.89B and an Enterprise Value of 18.12B. For the stock, the TTM Price-to-Sale (P/S) ratio is 5.48 while its Price-to-Book (P/B) ratio in mrq is 22.49. Its current Enterprise Value per Revenue stands at 5.51 whereas that against EBITDA is -21.08.

Stock Price History:

Over the past 52 weeks, DKNG has reached a high of $38.72, while it has fallen to a 52-week low of $10.69. The 50-Day Moving Average of the stock is 30.51, while the 200-Day Moving Average is calculated to be 25.48.

Shares Statistics:

DKNG traded an average of 12.29M shares per day over the past three months and 17.52M shares per day over the past ten days. A total of 450.57M shares are outstanding, with a floating share count of 445.41M. Insiders hold about 4.47% of the company’s shares, while institutions hold 63.04% stake in the company. Shares short for DKNG as of Oct 30, 2023 were 24.15M with a Short Ratio of 24.15M, compared to 23.72M on Sep 28, 2023. Therefore, it implies a Short% of Shares Outstanding of 5.18% and a Short% of Float of 5.47%.

Earnings Estimates

The firm’s stock currently is rated by 21 analysts. On average, analysts expect EPS of $0.14 for the current quarter, with a high estimate of $0.23 and a low estimate of $0.03, while EPS last year was -$0.53. The consensus estimate for the next quarter is -$0.34, with high estimates of -$0.21 and low estimates of -$0.47.

Analysts are recommending an EPS of between -$1.31 and -$1.56 for the fiscal current year, implying an average EPS of -$1.45. EPS for the following year is -$0.27, with 22 analysts recommending between $0.21 and -$0.65.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 24 analysts. It ranges from a high estimate of $1.35B to a low estimate of $1.24B. As of the current estimate, DraftKings Inc.’s year-ago sales were $855.13M, an estimated increase of 49.10% from the year-ago figure. For the next quarter, 14 analysts are estimating revenue of $1.03B, an increase of 34.00% less than the figure of $49.10% in the same quarter last year. There is a high estimate of $1.11B for the next quarter, whereas the lowest estimate is $886.7M.

A total of 28 analysts have provided revenue estimates for DKNG’s current fiscal year. The highest revenue estimate was $3.79B, while the lowest revenue estimate was $3.67B, resulting in an average revenue estimate of $3.71B. In the same quarter a year ago, actual revenue was $2.24B, up 65.50% from the average estimate. Based on 28 analysts’ estimates, the company’s revenue will be $4.69B in the next fiscal year. The high estimate is $4.79B and the low estimate is $4.6B. The average revenue growth estimate for next year is up 26.60% from the average revenue estimate for this year.

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