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DraftKings Inc. Class A Common Stock (DKNG) — WACC Analysis

WACC Breakdown

DraftKings Inc. Class A Common Stock (DKNG) has a weighted average cost of capital (WACC) of 10.2%. The cost of equity is 11.2%, derived from a beta of 1.71 and a risk-free rate of 5.0%. The after-tax cost of debt is 2.0%. The capital structure is 89.1% equity and 10.9% debt.

Interpretation

A WACC of 10.2% is moderate, reflecting the market's balanced risk assessment of DraftKings Inc. Class A Common Stock.

Investors can compare DKNG's WACC of 10.2% against industry peers to gauge its relative financing costs. A beta of 1.71 reflects the stock's volatility relative to the broader market.

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VALUATION

DKNG WACC: 10.21% for DraftKings Inc. Class A Common Stock

Current inputs imply a 11.21% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

DraftKings Inc. Class A Common Stock Common Stock (DKNG) WACC Results
Weighted Average Cost of Capital
10.21%
Cost of Equity
11.21%
Risk-Free Rate4.98%
Beta1.71
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 89.08%($10.29B)
Debt: 10.92%($1260.42M)
Equity Component
9.99%
89.08% × 11.21%
Debt Component
0.22%
10.92% × 2.00%

DraftKings Inc. Class A Common Stock (DKNG) WACC in context

DraftKings Inc. Class A Common Stock (DKNG) currently screens with an estimated WACC of 10.21%. That blends a 11.21% cost of equity, a 2.00% pre-tax cost of debt, and a 89.08% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What DKNG WACC implies

A 10.21% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates DKNG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.71 and equity accounts for 89.08% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.