DKNG (DraftKings) 3-Year RORE % : -62.94% (As of Mar. 2026)

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

DKNG DraftKings Inc DKNG
69 GF Score
Price $24.11
GF Value $54.01
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is DraftKings 3-Year RORE %?

DraftKings DKNG +4.78% 69 3-Year RORE % is -62.94 as of Mar. 2026. GuruFocus rates DKNG with a GF Score™ of 69/100 and a GF Value™ of $54.01 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 791 Travel & Leisure companies, DraftKings ranks worse than 86.98% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. DraftKings's 3-Year RORE % for the quarter that ended in Mar. 2026 was -62.94%.

The industry rank for DraftKings's 3-Year RORE % or its related term are showing as below:

DKNG's 3-Year RORE % is ranked worse than
86.98% of 791 companies
in the Travel & Leisure industry
Industry Median: 4.39 vs DKNG: -62.94

DraftKings  (NAS:DKNG) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


DraftKings 3-Year RORE % Related Terms


DraftKings 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for DraftKings's 3-Year RORE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

DraftKings 3-Year RORE % Chart

DraftKings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only 45.50 -4.08 -23.33 -34.83 -59.58

DraftKings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -41.58 -46.49 -44.11 -59.58 -62.94

DKNG vs SGHC, CHDN, LNWO: 3-Year RORE % Comparison

For the Gambling subindustry, DraftKings's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


DraftKings 3-Year RORE % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, DraftKings's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where DraftKings's 3-Year RORE % falls into.


DKNG
69GF Score
DraftKings Inc DKNG
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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DraftKings 3-Year RORE % Calculation

DraftKings's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 0.06--1.18 )/( -1.97-0 )
=1.24/-1.97
=-62.94 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of -62.94 mean?
DraftKings (DKNG) has a 3-Year RORE % of -62.94 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on DraftKings and its competitors. According to the industry distribution chart, DraftKings ranks #688 out of 791 companies in the Travel & Leisure industry, placing it in the top 87%.
Is DraftKings' 3-Year RORE % too high?
DraftKings' current 3-Year RORE % is -62.94. Based on the distribution chart, DraftKings ranks #688 out of 791 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, DraftKings has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DraftKings' 3-Year RORE % compare to SGHC and CHDN?
According to the Travel & Leisure industry distribution chart, DraftKings ranks #688 out of 791 companies for 3-Year RORE %. This places DraftKings in the lower half of its industry. The industry median 3-Year RORE % is 4.39. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Travel & Leisure company?
The median 3-Year RORE % among Travel & Leisure companies is 4.39, based on 791 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on DraftKings and its competitors. For the Travel & Leisure industry, the median 3-Year RORE % is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DraftKings's current 3-Year RORE % is -62.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DraftKings stock overvalued right now?
Based on GuruFocus' analysis, DraftKings (DKNG) is currently considered Possible Value Trap. The stock's GF Value™ is $54.01, compared to a current price of $24.11 — trading 55.4% below its estimated fair value. The current 3-Year RORE % is -62.94. DraftKings' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For DraftKings (DKNG), the current 3-Year RORE % is -62.94 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is DraftKings (DKNG) Overvalued in 2026?

Based on GuruFocus' analysis, DraftKings stock appears to be undervalued. The current stock price of $24.11 is trading 55.4% below its estimated GF Value™ of $54.01. GuruFocus considers DraftKings to be Possible Value Trap.

Key valuation signals for DKNG:

  • 3-Year RORE %: -62.94
  • GF Value™: $54.01 vs. price of $24.11 (55.4% below fair value)
  • GF Score™: 69/100 with 3 warning signs

No single metric tells the full story. See the DKNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DraftKings Business Description

Address 222 Berkeley Street, 5th Floor, Boston, MA, USA, 02116
DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number-two or -three revenue share position across states where it competes. With its predictive market launch in 2025, DraftKings is now live with online or retail sports betting in most all states and i-gaming in five states, with both products available to around 40% of Canada's population. In 2025, sports revenue was 63% of total sales, i-gaming 30%, and fantasy and lottery 7%.
69GF Score

Get the complete analysis for DKNG

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$24.11
Price
$54.01
GF Value