Discounted Cash Flow (DCF) Analysis Unlevered

DraftKings Inc. (DKNG)

$24.94

-0.62 (-2.43%)
All numbers are in Millions, Currency in USD
Stock DCF: -911.33 | 24.94 | overvalue

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 226.28323.41614.531,296.022,240.464,014.417,192.9212,888.1223,092.6441,376.88
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 7.5013.6477.41121.14169.25297.29532.68954.451,710.163,064.22
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 117.91480.491,820.212,152.891,309.175,792.1710,378.2718,595.5533,319.0959,700.40
Total Cash (%)
Account Receivables 21.3319.8374.7797.8151.10301.52540.259681,734.453,107.75
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 11.6316.6228.0852.54517.59337.21604.211,082.621,939.813,475.70
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 226.28323.41614.531,296.022,240.464,014.417,192.9212,888.1223,092.6441,376.88
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 7.5013.6477.41121.14169.25297.29532.68954.451,710.163,064.22
Accounts Receivable -1.51-54.94-23.0446.72-250.42-238.73-427.76-766.44-1,373.30
Inventories ----------
Accounts Payable -4.9911.4624.46465.05-180.37267478.40857.191,535.89
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