Discounted Cash Flow (DCF) Analysis Levered
DraftKings Inc. (DKNG)
$18.31
+1.08 (+6.27%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 226.28 | 323.41 | 614.53 | 1,296.02 | 2,240.46 | 4,014.41 | 7,192.92 | 12,888.12 | 23,092.64 | 41,376.88 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -45.58 | -78.88 | -337.87 | -419.51 | -625.52 | -1,283.02 | -2,298.89 | -4,119.09 | -7,380.50 | -13,224.22 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -26.67 | -42.27 | -47.70 | -98.28 | -32.40 | -334.39 | -599.14 | -1,073.53 | -1,923.53 | -3,446.54 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -72.25 | -121.15 | -385.57 | -517.78 | -657.92 | -1,617.41 | -2,898.03 | -5,192.63 | -9,304.03 | -16,670.76 |
Weighted Average Cost Of Capital
| Share price | $ 18.31 |
|---|---|
| Beta | 1.798 |
| Diluted Shares Outstanding | 305.59 |
| Cost of Debt | |
| Tax Rate | 4.50 |
| After-tax Cost of Debt | 1.35% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.095 |
| Total Debt | 1,324.69 |
| Total Equity | 5,595.41 |
| Total Capital | 6,920.10 |
| Debt Weighting | 19.14 |
| Equity Weighting | 80.86 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 226.28 | 323.41 | 614.53 | 1,296.02 | 2,240.46 | 4,014.41 | 7,192.92 | 12,888.12 | 23,092.64 | 41,376.88 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -45.58 | -78.88 | -337.87 | -419.51 | -625.52 | -1,283.02 | -2,298.89 | -4,119.09 | -7,380.50 | -13,224.22 |
| Capital Expenditure | -26.67 | -42.27 | -47.70 | -98.28 | -32.40 | -334.39 | -599.14 | -1,073.53 | -1,923.53 | -3,446.54 |
| Free Cash Flow | -72.25 | -121.15 | -385.57 | -517.78 | -657.92 | -1,617.41 | -2,898.03 | -5,192.63 | -9,304.03 | -16,670.76 |
| WACC | ||||||||||
| PV LFCF | -1,469.83 | -2,393.33 | -3,897.05 | -6,345.55 | -10,332.43 | |||||
| SUM PV LFCF | -24,438.18 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.04 |
| Free cash flow (t + 1) | -17,004.17 |
| Terminal Value | -211,494.70 |
| Present Value of Terminal Value | -131,083.06 |
Intrinsic Value
| Enterprise Value | -155,521.24 |
|---|---|
| Net Debt | 15.52 |
| Equity Value | -155,536.76 |
| Shares Outstanding | 305.59 |
| Equity Value Per Share | -508.97 |