What Is DraftKings' Stock Actually Worth?
Sports betting company DraftKings (NASDAQ: DKNG) has been one of the hottest stocks of 2020, soaring about 68% (as of Monday's close) since it formally went public through a special purpose acquisition company (SPAC) in late April.
However, investors should be aware that the company's valuation may be more expensive than it first appears due to the creation of additional shares that will soon add to the share count and dilute shareholders. Inappropriately calculating the number of shares outstanding throws off the math on total market capitalization and leads to errors in valuation -- investors may want to sharpen their pencils!
Source Fool.com
