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The stock is currently trading at an expensive valuation, which is not justified by its fundamentals and growth prospects. DKNG’s 19.92x forward EV/Sales is 1,061.7% higher than the 1.71x industry average. And the stock’s 21.58x forward Price/Sales is 1,463.6% higher than the 1.38x industry average. However, the company’s EPS is expected to remain negative in fiscal 2021 and fiscal 2022.
While DKNG may not be a good bet now, the sports gambling industry has been gaining investors’ attention owing to the increasing legalization of sports gambling across several states. So, we think it’s wise to bet on Boyd Gaming Corporation (BYD) and William Hill PLC (WIMHY), which are growing steadily and increasing their market reach.
