We don’t plan a meaningful change to our $47 fair value estimate for no-moat DraftKings after the company reported terrific first-quarter results and increased its 2024 sales and adjusted EBITDA guidance roughly in line with our estimates.
We see DraftKings’ online platform as well positioned to participate in the $40 billion-$50 billion North American sports betting and iGaming revenue opportunity by 2030.
Online gaming operators face intense competition, with state licenses amounting to more than two dozen in some states.
|
Metric
|
DKNG
|
PENN
|
CZR
|
|---|---|---|---|
Price/Earnings (Normalized) | 380.18 | 12.70 | 157.47 |
Price/Book Value | 23.96 | 0.75 | 1.73 |
Price/Sales | 4.80 | 0.36 | 0.67 |
Price/Cash Flow | 193.40 | 3.51 | 4.45 |
|
Metric
|
DKNG
|
PENN
|
CZR
|
|---|---|---|---|
Quick Ratio | 1.05 | 0.89 | 0.50 |
Current Ratio | 1.34 | 1.04 | 0.69 |
Interest Coverage | −316.16 | −1.86 | 0.99 |
|
Metric
|
DKNG
|
PENN
|
CZR
|
|---|---|---|---|
Return on Assets (Normalized) | −5.42% | −0.86% | 3.03% |
Return on Equity (Normalized) | −22.77% | −3.89% | 23.22% |
Return on Invested Capital (Normalized) | −11.27% | 1.52% | 14.64% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
FLUT
| Flutter Entertainment PLC | — | Szcqxz | $35.0 Bil | |
EVVTY
| Evolution AB ADR | — | Nlj | $23.4 Bil | |
EVGGF
| Evolution AB | — | Wdznn | $23.4 Bil | |
ARLUF
| Aristocrat Leisure Ltd | — | Hhdphfh | $16.7 Bil | |
CHDN
| Churchill Downs Inc | — | Qqctqm | $9.9 Bil | |
LNW
| Light & Wonder Inc Ordinary Shares | Vxfqsxrj | Lklk | $8.4 Bil | |
LTRCF
| The Lottery Corp Ltd | — | Dzqqp | $7.2 Bil | |
LFDJF
| La Francaise Des Jeux SA Ordinary Shares | — | Nlw | $6.9 Bil | |
GMVHY
| Entain PLC ADR | — | Dphvfn | $6.3 Bil |
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