DraftKings Inc. (DKNG) Stock

DraftKings Inc. (DKNG) is a Communication Services stock trading at $25.02 (as of 2026-08-20), with a market capitalization of $12.41B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

DraftKings Inc. is a digital sports entertainment and gaming company that provides online sports wagering and iGaming, including operations under the DraftKings brand and Golden Nugget Online Gaming. It also offers daily fantasy sports, a digital collectibles marketplace, and owns VSiN, delivering content and services to consumers and partners across multiple U.S. states and international markets.

Understand DraftKings Inc.: how it makes money

DraftKings runs digital sports betting and iGaming, and it makes money by taking a portion of betting activity as sportsbook revenue, plus earning additional revenue from its business-to-consumer and business-to-business offerings.

The company’s profit engine is how efficiently it converts betting handle into retained sportsbook revenue, mainly reflected in sportsbook hold percentage and factors like promo reinvestment efficiency, parlay mix, and trading capabilities.

Revenue by segment (latest quarter)
SB	$1.1B
B2C	$0.5B
B2B	$0.0B

Business quality (Mixed): Revenue is scaling with sportsbook activity, but profitability remains thin in the latest quarter, and key conversion metrics like actual sportsbook hold and forcebook hold sit below higher reference levels.

Valuation: At 286× earnings, DKNG trades 439% above the Entertainment average (53×). Note: one-time items can distort reported P/E.

Bull case

Large betting activity base: Sportsbook Handle is USD_B 11.4 and Sportsbook Revenue is USD_B 1.1 in the latest period.
Conversion supports revenue growth factors: The provided revenue bridge indicates contributions from favorable sport outcomes (USD_B 0.07) and improved parlay mix and trading capabilities (USD_B 0.05).
Operational execution in live markets: Core Live Market Uptime is 90.0%.
Improving promo efficiency: Promotional Reinvestment Efficiency Improvement is 6.0%.

Bear case

Hold percentage below structural reference: Actual Sportsbook Hold Percentage is 9.5%, below Structural Sportsbook Hold Percentage of 10.4%.
Forcebook hold underperforms reference level: Actual Forcebook Hold Percentage is 0.5%, below Fractal Forcebook Hold Percentage of 0.9%.
Revenue can be sensitive to sport outcomes and mix: The revenue bridge explicitly highlights outcomes impact on revenue (May and June), and includes multiple mix and trading adjustments.
Thin profitability in the latest quarter: Operating margin is 0.4% while operating is supported by gross margin of 42.3%.

Valuation — source: SEC EDGAR (first-party)
Price	$25.02
Market Cap	$12.41B
EV / EBITDA	65.5
Price / Book	21.80
Price / Sales	2.11
FCF Yield	2.2%
DCF Value (model)	$17.02
DCF Upside vs Price	-32.0%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$6.05B
Net Margin	0.1%
Revenue Growth (YoY)	42.8%
EPS Growth (YoY)	-200.0%
FCF Growth (YoY)	-2.1%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.26 (distress)

Valuation vs Sector & Industry
Sector P/E (Communication Services)	24.4
Industry P/E (Entertainment)	39.5

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($1.54B)
Institutional Holders Tracked	10

Company
Sector	Communication Services
Industry	Entertainment
CEO	Jason D. Robins
Employees	5,100
Country	US
IPO Date	2019-07-25

Related Companies (Business model: Online Gaming / Sportsbook / Casino Operator; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.