Discounted Cash Flow (DCF) Analysis Unlevered
DraftKings Inc. (DKNG)
$24.94
-0.62 (-2.43%)
All numbers are in Millions, Currency in USD
Operating Data
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 (%) | ||||||||||
| EBITDA | -68.62 | -129.04 | -767.48 | -1,391.83 | -1,122.17 | -2,830.89 | -5,072.33 | -9,088.48 | -16,284.53 | -29,178.25 |
| EBITDA (%) | ||||||||||
| EBIT | -76.12 | -142.68 | -844.89 | -1,512.97 | -1,291.42 | -3,128.18 | -5,605.01 | -10,042.93 | -17,994.69 | -32,242.48 |
| EBIT (%) | ||||||||||
| Depreciation | 7.50 | 13.64 | 77.41 | 121.14 | 169.25 | 297.29 | 532.68 | 954.45 | 1,710.16 | 3,064.22 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 117.91 | 480.49 | 1,820.21 | 2,152.89 | 1,309.17 | 5,792.17 | 10,378.27 | 18,595.55 | 33,319.09 | 59,700.40 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 21.33 | 19.83 | 74.77 | 97.81 | 51.10 | 301.52 | 540.25 | 968 | 1,734.45 | 3,107.75 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 11.63 | 16.62 | 28.08 | 52.54 | 517.59 | 337.21 | 604.21 | 1,082.62 | 1,939.81 | 3,475.70 |
| Accounts Payable (%) | ||||||||||
| 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 (%) |
Weighted Average Cost Of Capital
| Share price | $ 24.94 |
|---|---|
| Beta | 1.788 |
| 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 | 12.186 |
| Total Debt | 1,324.69 |
| Total Equity | 7,621.49 |
| Total Capital | 8,946.18 |
| Debt Weighting | 14.81 |
| Equity Weighting | 85.19 |
| Wacc |
Build Up Free Cash
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -68.62 | -129.04 | -767.48 | -1,391.83 | -1,122.17 | -2,830.89 | -5,072.33 | -9,088.48 | -16,284.53 | -29,178.25 |
| EBIT | -76.12 | -142.68 | -844.89 | -1,512.97 | -1,291.42 | -3,128.18 | -5,605.01 | -10,042.93 | -17,994.69 | -32,242.48 |
| Tax Rate | -0.14% | -0.38% | 0.01% | -0.37% | 4.50% | 0.73% | 0.73% | 0.73% | 0.73% | 0.73% |
| EBIAT | -76.22 | -143.21 | -844.84 | -1,518.50 | -1,233.27 | -3,105.49 | -5,564.34 | -9,970.06 | -17,864.12 | -32,008.53 |
| Depreciation | 7.50 | 13.64 | 77.41 | 121.14 | 169.25 | 297.29 | 532.68 | 954.45 | 1,710.16 | 3,064.22 |
| Accounts Receivable | - | 1.51 | -54.94 | -23.04 | 46.72 | -250.42 | -238.73 | -427.76 | -766.44 | -1,373.30 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 4.99 | 11.46 | 24.46 | 465.05 | -180.37 | 267 | 478.40 | 857.19 | 1,535.89 |
| 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 |
| UFCF | -95.39 | -165.35 | -858.61 | -1,494.22 | -584.66 | -3,573.37 | -5,602.54 | -10,038.50 | -17,986.75 | -32,228.26 |
| WACC | ||||||||||
| PV UFCF | -3,231.48 | -4,581.75 | -7,424.02 | -12,029.47 | -19,491.89 | |||||
| SUM PV UFCF | -46,758.60 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.58 |
| Free cash flow (t + 1) | -32,872.82 |
| Terminal Value | -383,133.11 |
| Present Value of Terminal Value | -231,721.73 |
Intrinsic Value
| Enterprise Value | -278,480.32 |
|---|---|
| Net Debt | 15.52 |
| Equity Value | -278,495.84 |
| Shares Outstanding | 305.59 |
| Equity Value Per Share | -911.33 |