Is DraftKings, Inc. overvalued or undervalued?

As of 12 March 2020, the valuation grade for DraftKings, Inc. moved from does not qualify to risky, indicating a significant shift in perceived risk. The company appears to be overvalued, particularly given its negative earnings and high valuation ratios. The Price to Book Value stands at 37.12, while the EV to Sales ratio is 6.62, both suggesting that the stock is priced excessively relative to its assets and sales. Additionally, the EV to EBITDA ratio is an alarming -178.11, reflecting the company's ongoing losses.
In comparison to peers, DraftKings' P/E ratio is notably negative at -161.49, while Live Nation Entertainment, Inc. has a fair valuation with a P/E of 34.31, highlighting the disparity in financial health among these companies. Liberty Media Corp. is categorized as very expensive with a P/E of 91.78, further emphasizing the high valuation concerns surrounding DraftKings. Over the past year, DraftKings has returned 13.74%, which is underperforming the S&P 500's 17.14%, reinforcing the notion that the stock may not be a sound investment at its current price.