Now is the Time to Consider Buying the DKNG Stock

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.

  1. DKNG Financial Metrics
  2. 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.

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