Draftkings (DKNG) Stock Forecast for 2025 is $31.63 Per Share
In order to reach a price target of $31.63 for the DKNG stock for the year 2025, I underwent 2 different methods of valuing the DKNG stock and averaged the result to get one final price target.
- DKNG Financial Metrics
- Draftkings Comparable Analysis
DKNG Financial Ratio Valuation
Firstly, DKNG’s Forward EPS for 2025 has been estimated to reach -$2.29. Furthermore, DKNG’s forward Price to Earnings Ratio has been forecasted to reach –15.48. By taking the product of DKNG’s forward PE and EPS we arrive at a DKNG stock forecast for 2025 of $35.45 per share
DKNG Comparable Companies Analysis
Who are DKNG’s Competitors?
ULTA, POOL, ETSY, LI, CZR, TSCO, LKQ, OZON, WYNN, PTON
DKNG Stock Forecast 2025 Via Comparable
DKNG’s P/B ratio is 5.74, compared to the P/B ratio (average) of DKNG’s peers being 9.3. This implies that DKNG is undervalued and its share price should change by a factor of 61.93% to be at fair value.
DKNG’s Current Ratio is sitting at 2.63, whereas the average current ratio of DKNG’s peers is 2.09. This implies that the DKNG stock is undervalued and should increase by 25.41% to be at fair value.
By undergoing this comparative analysis, I found that the DKNG stock is currently undervalued and its share price should increase by 43.67% in order to be considered at fair value. If DKNG was to reach their fair value, this valuation method implies a DKNG stock forecast for 2025 of $27.80.
Are DKNG Analysts Bullish as Well?
Currently, there are 40 analyst ratings that have been given to the DKNG stock. These ratings are distributed as follows:
22 Buys
16 Holds
2 Sells
55% of analysts have given DKNG a ‘buy” rating, which implies an overall bullish analyst sentiment, with “buy” ratings forming the majority of total ratings given. Furthermore, the fact that there other 18 non-buy ratings only consist of 2 “sell” ratings is a bullish sign as well.
Conclusion
Due to the fact that my DKNG price target is $31.63 per share, analysts are generally bullish on the DKNG stock, and the fact that the current price of DKNG is $19.35. I would have to agree with analysts and say that the DKNG stock is a buy.
Let me know what you think, happy to dive into other aspects of DKNG to help you make an informed investment decision.
Originally published at https://utradea.com.
