Is DraftKings, Inc. overvalued or undervalued?

As of 12 March 2020, DraftKings, Inc. has moved from a grade of "does not qualify" to "risky," indicating increased concerns regarding its valuation. The company is currently overvalued, as evidenced by its negative P/E ratio and poor performance metrics. Key ratios include a Price to Book Value of 37.12, an EV to EBIT of -69.92, and an EV to Sales of 6.62, all of which suggest significant financial distress and a lack of profitability.
In comparison to peers, DraftKings' valuation appears unfavorable; The Walt Disney Co. is rated as "fair" with a P/E ratio of 19.57, while Liberty Media Corp. is also classified as "risky" with a P/E ratio of 1426.25. DraftKings' return over the past year has been -1.26%, contrasting sharply with the S&P 500's 10.26% return, further reinforcing the notion that the stock is overvalued in its current state.