Is DraftKings (DKNG) Starting To Look Attractive After Recent Share Price Pullback

Simply Wall St.01-12

If you are wondering whether DraftKings is still priced for excitement or starting to offer value, you are not alone. This article is written with that exact question in mind. The stock closed at US$...

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The stock closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-dkng/draftkings/news/is-draftkings-dkng-starting-to-look-attractive-after-recent\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is DraftKings (DKNG) Starting To Look Attractive After Recent Share Price Pullback</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs DraftKings (DKNG) Starting To Look Attractive After Recent Share Price Pullback\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-12 23:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nasdaq-dkng/draftkings/news/is-draftkings-dkng-starting-to-look-attractive-after-recent><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether DraftKings is still priced for excitement or starting to offer value, you are not alone. This article is written with that exact question in mind. The stock closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-dkng/draftkings/news/is-draftkings-dkng-starting-to-look-attractive-after-recent\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1861558580.USD","symbol_name":"日兴方舟颠覆性创新基金B","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-dkng/draftkings/news/is-draftkings-dkng-starting-to-look-attractive-after-recent","article_id":"2603754069","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4211000-choice2-main-header/1585186807418"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-dkng/draftkings/news/is-draftkings-dkng-starting-to-look-attractive-after-recent","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603754069","pubTimestamp":1768231390,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether DraftKings is still priced for excitement or starting to offer value, you are not alone. This article is written with that exact question in mind.\nThe stock closed at US$35.17, with recent returns showing a 3% decline over 7 days, a 1% decline over 30 days, a 1.4% decline year to date, an 11.7% decline over 1 year, and a very large gain over 3 years that sits alongside a 34.5% decline over 5 years.\nRecent headlines around DraftKings have continued to focus on the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0240877869.USD":"SCHRODER ISF GLOBAL SMALL COMPANIES \"A\" ACC","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","DKNG":"DraftKings Inc.","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4565":"NFT概念","BK4585":"ETF&股票定投概念","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4588":"碎股","LU0240878834.USD":"SCHRODER ISF GLOBAL SMALL COMPANIES \"A\" (USD) INC AV","BK4150":"赌场与赌博"},"translate_title":"DraftKings(DKNG)在最近股价回调后是否开始看起来有吸引力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"DKNG":1.5},"content_text":"If you are wondering whether DraftKings is still priced for excitement or starting to offer value, you are not alone. This article is written with that exact question in mind. The stock closed at US$35.17, with recent returns showing a 3% decline over 7 days, a 1% decline over 30 days, a 1.4% decline year to date, an 11.7% decline over 1 year, and a very large gain over 3 years that sits alongside a 34.5% decline over 5 years. Recent headlines around DraftKings have continued to focus on the broader US online sports betting and iGaming sector, including ongoing state level expansion and regulatory discussions that influence how quickly the industry can grow. These themes help frame why the stock has seen periods of strong enthusiasm as well as pullbacks when expectations are reassessed. On Simply Wall St's 6 point valuation checklist, DraftKings scores 3 out of 6. In this article we will look at what different valuation methods say about that score, then finish by highlighting a more complete way to think about what the current price really implies.  Find out why DraftKings's -11.7% return over the last year is lagging behind its peers. AdvertisementApproach 1: DraftKings Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today to arrive at an estimate of what the entire business could be worth right now. For DraftKings, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flows in US$. The latest twelve month free cash flow is about $513.6 million. Simply Wall St uses analyst estimates where available and then extends those projections, with free cash flow in the ten year outlook rising to a projected $3.5b by 2035, with $2.5b indicated for 2030. When all those projected cash flows are discounted back, the DCF model produces an estimated intrinsic value of US$87.80 per share. Compared with the recent share price of US$35.17, this indicates an implied discount of 59.9%, which suggests the shares are currently priced well below this particular cash flow based estimate. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests DraftKings is undervalued by 59.9%. Track this in your watchlist or portfolio, or discover 883 more undervalued stocks based on cash flows. DKNG Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for DraftKings. Approach 2: DraftKings Price vs Sales For companies where earnings are not yet a steady guide, the P/S ratio is often more useful than P/E or P/B because it focuses on revenue, which usually stabilizes earlier in a business journey than profits or book value. In general, higher growth expectations and lower perceived risk can justify a higher P/S, while slower growth and higher uncertainty usually point to a lower, more conservative multiple. So what really matters is not the absolute P/S in isolation, but whether it lines up with the business profile and risk level. DraftKings currently trades on a P/S of 3.21x. That sits above the Hospitality industry average P/S of 1.66x and also above the peer group average of 1.99x, which suggests the market is placing a higher value on each dollar of DraftKings revenue than on many peers. Simply Wall St’s Fair Ratio for DraftKings is 3.26x. This is a proprietary estimate of what the P/S could reasonably be, after accounting for factors like earnings growth, profit margins, industry, market cap and company specific risks, rather than just comparing with broad industry or peer averages. With the current P/S of 3.21x sitting very close to the Fair Ratio of 3.26x, the shares appear to be roughly in line with what this framework suggests. Result: ABOUT RIGHT NasdaqGS:DKNG P/S Ratio as at Jan 2026 P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your DraftKings Narrative Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St you can use Narratives: short, plain language stories that connect your view of DraftKings business to specific revenue, earnings and margin assumptions. These are rolled into a forecast and fair value estimate on the Community page. You can then compare that fair value with today’s price to decide whether the stock looks appealing or stretched. The narrative and valuation automatically update as new news or earnings land. One investor might build a bullish DraftKings narrative around the higher US$78.00 analyst price target, long term prediction market and iGaming potential and improving margins. Another might lean on the lower US$39.50 target, higher taxes, regulatory risk and tougher competition. This gives you a clear, side by side sense of how different stories lead to very different numbers. Do you think there's more to the story for DraftKings? Head over to our Community to see what others are saying! NasdaqGS:DKNG 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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