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ZYBERNO
Stock Report
Updated Aug 29, 2026

DRAFTKINGS INC. (DKNG)

NASDAQ

$25.57
DraftKings Inc. is an American daily fantasy sports contest and sports betting operator headquartered in Boston, Massachusetts. The company offers daily fantasy sports contests, legal sports betting, iGaming (online casino), and gaming technology products across the United States and internationally. DraftKings is one of the two dominant U.S. online sports betting operators alongside FanDuel, and holds gaming licenses in approximately 25 U.S. states.

Professional Investment Analysis

ZYBERNO SCORE →
Is it a great business? Is it getting better?
34.0/100
WEAK BUSINESS
DRAFTKINGS INC. (DKNG) scores 34/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.
📊 How is the Zyberno Score calculated? +
VALUATION SIGNAL
MARGIN OF SAFETY
Is this stock cheap or expensive relative to what the business has historically generated for owners?
+42.9%
Undervalued
Growth gap unavailable — insufficient data for reverse DCF calculation.
🎯 Expected Annual Return →
34.2%
Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)
-14.4%
Yield + growth — what the business alone earns you, even if the market never re-rates
💰 How is Margin of Safety calculated? +
📈 How is Brina Gap calculated? +

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-26.3%)
Debt-to-Equity (Solvency Risk):CRITICAL (3.39x)
Operating Margin (Operational Efficiency):CRITICAL (-1.0%)
Return on Capital (Capital Efficiency):CRITICAL (-10.8%)
📊 Valuation Trilogy
Three interconnected metrics for complete valuation analysis
💎
Intrinsic Value
DCF Fair Value
$44.76
🛡️
Margin of Safety
Valuation Gap
42.9%
🎯
Expected Return
Projected Annual
34.2%
Click any metric for full methodology and detailed analysis
Zyberno's Verdict

DRAFTKINGS INC. (DKNG) stock report — Zyberno Score 34/100 (WEAK BUSINESS), Margin of Safety +42.9%, 34% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, DRAFTKINGS INC. (DKNG) trades at $25.57 against an estimated intrinsic value per share of $44.76 — a +42.9% Margin of Safety based on Owner Earnings of $713.64M TTM, projected at 80.0% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 34.2% annually.

Over the trailing twelve months, DKNG generated $713.64M in Owner Earnings. Capital was deployed as follows: $98.64M returned via share buybacks, $19.79M invested in capital expenditures. Reinvestment rate: 532.2%. Owner Earnings have grown at 80.0% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY
A. Market Valuation

Market Price & Capitalization (2)

Current Price:25.57
Market Cap:$12.68B

Valuation Multiples (3)

P/B Ratio:22.28x
P/S Ratio:2.04x
Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$12.54B
Ev Ebitda Ratio:30.07x
Pfcf Ratio:17.77x

Price Action & Momentum (3)

12-1 Momentum:
-48.9% (12th pctile)
📈 Click to view full DKNG Momentum analysis →
Momentum Percentile:12 / 100
% of 52-Week High:52.4%
B. Profitability Assessment

Return Metrics (5)

ROE:
-26.3%
📊 Click to view full DKNG ROE analysis →
ROA:-3.8%
Roic:
-10.8%
📊 Click to view full DKNG ROIC analysis →
Reinvestment Rate:532.2%
Fundamental Growth Rate (g):-57.4%

Margin Analysis (3)

Operating Margin Ttm:-1.0%
Net Margin Ttm:-2.7%
Ebitda Margin:6.7%

TTM Performance (3)

Gross Margin Ttm:40.5%
Operating Margin Ttm:-1.0%
Net Margin Ttm:-2.7%

Yield Metrics (3)

Earnings Yield:-$0.47
Owner Earnings Yield:$5.63
Dividend Yield:0.0%
C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):
-3.03
📊 Click to view full DKNG Earnings Surprise analysis →
EPS Surprise vs Expected:-124.7%
Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):28.7%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-23.6%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):80.0%
Operating Cash Flow Growth Rate (Linear):75.1%
D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.02x
Quick Ratio:1.02x
Cash Ratio:0.63x

Leverage Analysis (3)

Debt To Equity Ttm:3.39x
Debt-to-Equity Ratio:3.39x
Debt To Ebitda:2.01x

Coverage Ratios (2)

Interest Coverage Ratio:-0.87x
Times Interest Earned:-0.87

Capital Structure (4)

Working Capital:26,335,000.00
Cash And Cash Equivalents:983,882,000.00
Long Term Debt:$150.03M
Net Debt:-$144.61M
DIVISION II: FINANCIAL STATEMENTS ANALYSIS
A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $6.22B
Linear Growth: 28.7%
📊 Click to view full DKNG Revenue analysis & methodology →
Cost Of Revenue Ttm:$3.70B

Profitability Breakdown (2)

Gross profit TTM: $2.52B
Linear Growth: 35.7%
📊 Click to view full DKNG Gross Profit analysis & methodology →
-$61.07M

Bottom Line Performance (3)

Net income TTM: -$166.90M
Linear Growth: -23.6%
📊 Click to view full DKNG Net Income analysis & methodology →
Income Before Tax:-$172.42M
Ebitda Ttm:417,031,000.00

Operating Expenses (5)

Operating Expenses:0.00
R And D Expense:0.00
Sga Expense:678,885,000.00
Income Tax Expense:$2.66M
Interest Expense:18,284,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%
Sga To Revenue Percentage:47.0%
Ebitda Margin:6.7%
B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$4.28B
Current Assets:$1.58B
Ppe Net:52,726,000.00
Goodwill:1,597,647,000.00
Intangible Assets:$837.44M

Liability Structure (4)

Total Liabilities:3,707,951,000.00
Current Liabilities:1,550,688,000.00
Long Term Debt:$150.03M
Short Term Debt:$689.25M

Equity & Capital (3)

Equity:$569.43M
Retained Earnings:-$6.48B
Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:82,079,000.00
Inventory:0.00
Accounts Payable:689,247,000.00

Special Items (2)

Contract Liabilities:149,015,000.00
Stock Based Compensation:82,554,000.00
C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $733.43M
Linear Growth: 75.1%
Free cash flow TTM: $713.64M
Linear Growth: 80.0%
📊 Click to view full DKNG Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$48.21M
Capital Expenditures Ttm:19,790,000.00

Financing Activities (3)

Financing Cash Flow:-$121.13M
Dividends Paid Ttm:0.00
Stock Repurchase:98,640,000.00

Capital Transactions (3)

Common Stock Issuance:0.00
Long Term Debt Issuance:$0.00
Long Term Debt Repayments:$1.50M

Non-Cash Items (1)

Depreciation Amortization Ttm:478,100,000.00
DIVISION III: OPERATIONAL METRICS
A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.34
Eps diluted TTM: -$0.12
Linear Growth: -9.5%
📊 Click to view full DKNG EPS analysis & methodology →
Earnings Per Share Ttm:-$0.34

Revenue & Cash Per Share (3)

Sales Per Share Ttm:12.54
Operating Cash Flow Per Share:$1.34
Fcf Per Share Ttm:1.44

Book Value & Capital (2)

Book Value Per Share:$1.15
Cash Per Share:1.98

Dividend Policy (1)

Dividend Payout Ratio:-999.00x
B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.40x
Working Capital Turnover Ttm:236.28x

Receivables Management (2)

Receivables Turnover Ttm:75.81x
Days Sales Outstanding Ttm:4.81

Inventory Management (2)

Inventory Turnover Ttm:-999.00x
Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:68.00
Cash Conversion Cycle:-1,062.18
C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00
Quality Score:90.00

Market Metrics (2)

Beta:0.00x
Volatility Category:unknown
DIVISION IV: INVESTMENT ANALYSIS
A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $713.64M
Linear Growth: 80.0%
📊 Click to view full DKNG Owner Earnings analysis & methodology →
Owner Earnings Per Share:$1.44
Owner Earnings Yield:$5.63

Growth Assessment (1)

Owner Earnings Growth Rate:$79.99

Damodaran Growth Analysis (2)

Reinvestment Rate:532.2%
Fundamental Growth Rate (g):-57.4%

Intrinsic Value Models (1)

Intrinsic Value:
$22.21B
📊 Click to view full DKNG DCF valuation →

Margin of Safety (1)

Margin Of Safety:
42.9%
📊 Click to view full DKNG valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:
34.2%
📊 Click to view full DKNG expected return analysis →
Forward Expected Return (Yield + Growth):
-14.4%
📊 Click to view full DKNG expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety
B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):28.7%
Net Income Growth Rate (Linear):-23.6%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):80.0%
Operating Cash Flow Growth Rate (Linear):75.1%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):35.7%
Book Value Growth Rate (Linear):-17.8%
Owner Earnings Growth Rate:$79.99
C. Company Profile & Context

Corporate Information (6)

Symbol:DKNG
Company Name:DRAFTKINGS INC.
Sector:Unknown
Industry:Services-Miscellaneous Amusement & Recreation
Exchange:NASDAQ
Country:United States

Market Classification (3)

Market Cap Category:N/A
Price Category:medium
Volume Category:N/A

Share Structure (3)

Shares Outstanding:496.09M
Shares Outstanding Basic:496.09M
Shares Outstanding Diluted:496.09M

Data Processing Info (3)

Processing Version:v3.0
Last Updated:2026-08-29 07:26:52 UTC
Data Timestamp:2026-08-29T07:26:52.957866
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