The analysis values DraftKings stock at $48 based on intrinsic value calculations, while it is currently trading at approximately $33. Despite this undervaluation, free cash flow expectations have been revised downward due to increased competition from companies like Kalshi and Polymarket. These competitors encroach on prediction markets and sports betting, raising investor concern. While DraftKings' acquisition in the prediction market space aims to capitalize on opportunities left by government deregulation, stiffer competition elevates risks for DraftKings. Still, the company has the potential to enter new markets due to the lightly regulated industry. Although there is a buy rating on DKNG stock it may drop to hold position.