Skillz Inc.

SKLZ

TechnologyElectronic Gaming & MultimediaNYSE

$6.92

Market Cap: $107.99M

Skillz Inc. (SKLZ) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.15 – $6.44	$0.15	-94.0%
Revenue DCF 10Y	—	N/A	—
▸ Trading Multiples
EV/Revenue	$6.97 – $19.27	$9.62	+286.2%

Valuation History

DCF Analysis

Skillz Inc. (SKLZ) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.15

Market Price

$6.92

Upside / Downside

-97.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -61.2% to a target of 10.0% over 5 years, discounted at a WACC of 11.2%, Skillz Inc. (SKLZ) has an intrinsic value of $0.15 per share (range: $0.15 – $6.44).

Key Assumptions

Current Operating Margin

-61.2%

Target Operating Margin

10.0%

WACC

11.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.9%

Target CapEx/Rev

6.0%

D&A/Revenue

3.1%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	116	11.3%	-46.9%	-55	-55	4	(4)	-4	-51	-48
2027	131	12.6%	-32.7%	-43	-43	4	(5)	0	-44	-38
2028	148	12.6%	-18.5%	-27	-27	5	(7)	0	-30	-23
2029	133	-10.0%	-4.3%	-6	-6	4	(7)	-0	-9	-6
2030	119	-10.0%	10.0%	12	9	4	(7)	-0	6	4

Enterprise Value Bridge

Sum of PV(FCFF)-111

Terminal Value (Gordon Growth at 3.0%)76

PV of Terminal Value47

Enterprise Value-63

(–) Net Debt-66

Equity Value2

(÷) Shares Outstanding16

Fair Value per Share$0.15

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
9.2%	$-4	$-1	$1	$4	$6
10.2%	$-4	$-2	$1	$3	$5
11.2%	$-4	$-2	$0	$2	$4
12.2%	$-4	$-2	$-0	$2	$3
13.2%	$-4	$-2	$-0	$1	$3

Current price: $6.92. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 0.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.62

Market Price

$6.92

Upside / Downside

+39.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Skillz Inc. (SKLZ) has a fair value of $9.62 based on 6 comparable companies in the Electronic Gaming & Multimedia industry.

EV/Revenue Valuation — Electronic Gaming & Multimedia

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Skillz Inc.SKLZ	108	0.4x	0.4x
Amtech Systems, Inc.ASYS	177	2.2x	1.6x
Magnachip Semiconductor CorporationMX	105	0.3x	0.2x
Nerdy, Inc.NRDY	102	0.4x	0.4x
Genasys Inc.GNSS	79	2.3x	2.6x
PSQ Holdings, Inc.PSQH	25	0.9x	0.7x
Soluna Holdings, Inc.SLNH	21	0.9x	1.1x
Industry Median		0.9x	0.9x
(*) Revenue		104	100
= Enterprise Value		96	72
(-) Net Debt		-66	-66
Equity Value		162	138
(/) Outstanding shares		16	16
Fair Price		$10	$9

Selected Fair Value (avg of trailing + forward)

$9.62

+39.0%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.15 – $6.44

$0.15

-94.0%

Revenue DCF 10Y

—

N/A

—

▸ Trading Multiples

EV/Revenue

$6.97 – $19.27

$9.62

+286.2%

DCF Analysis

Skillz Inc. (SKLZ) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.15

Market Price

$6.92

Upside / Downside

-97.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-61.2%

Target Operating Margin

10.0%

WACC

11.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.9%

Target CapEx/Rev

6.0%

D&A/Revenue

3.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	116	11.3%	-46.9%	-55	-55	4	(4)	-4	-51	-48
2027	131	12.6%	-32.7%	-43	-43	4	(5)	0	-44	-38
2028	148	12.6%	-18.5%	-27	-27	5	(7)	0	-30	-23
2029	133	-10.0%	-4.3%	-6	-6	4	(7)	-0	-9	-6
2030	119	-10.0%	10.0%	12	9	4	(7)	-0	6	4

Enterprise Value Bridge

Sum of PV(FCFF)-111

Terminal Value (Gordon Growth at 3.0%)76

PV of Terminal Value47

Enterprise Value-63

(–) Net Debt-66

Equity Value2

(÷) Shares Outstanding16

Fair Value per Share$0.15

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
9.2%	$-4	$-1	$1	$4	$6
10.2%	$-4	$-2	$1	$3	$5
11.2%	$-4	$-2	$0	$2	$4
12.2%	$-4	$-2	$-0	$2	$3
13.2%	$-4	$-2	$-0	$1	$3

Current price: $6.92. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 0.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.62

Market Price

$6.92

Upside / Downside

+39.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Skillz Inc. (SKLZ) has a fair value of $9.62 based on 6 comparable companies in the Electronic Gaming & Multimedia industry.

EV/Revenue Valuation — Electronic Gaming & Multimedia

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Skillz Inc.SKLZ	108	0.4x	0.4x
Amtech Systems, Inc.ASYS	177	2.2x	1.6x
Magnachip Semiconductor CorporationMX	105	0.3x	0.2x
Nerdy, Inc.NRDY	102	0.4x	0.4x
Genasys Inc.GNSS	79	2.3x	2.6x
PSQ Holdings, Inc.PSQH	25	0.9x	0.7x
Soluna Holdings, Inc.SLNH	21	0.9x	1.1x
Industry Median		0.9x	0.9x
(*) Revenue		104	100
= Enterprise Value		96	72
(-) Net Debt		-66	-66
Equity Value		162	138
(/) Outstanding shares		16	16
Fair Price		$10	$9

Selected Fair Value (avg of trailing + forward)

$9.62

+39.0%