Stock fact sheet · data as of
Designer Brands Inc. (DBI): fair value, margin of safety and Wheel Score
Ticker symbol DBI · Consumer Cyclical · Apparel - Footwear & Accessories · United States · Class A common stock · Value
DBI is Designer Brands Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is DBI undervalued?
At 7.25 (close of 5 Nov 2026), DBI trades 51% below the GLS average fair value of 14.76. That average comes from 9 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Designer Brands Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between DDM (2.94) and 10 Cap (52.96). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, DBI is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 54, growth score 32, out of 100).
Nine valuation models for DBI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 17.74 | +145% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 6.05 | -17% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 17.31 | +139% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 7.57 | +4% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.83 | -33% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 52.96 | +631% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 20.08 | +177% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 2.94 | -59% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 3.36 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.62 | -357% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.00 | -17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Designer Brands Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 2.7/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -0.6%, ROE -3.0%, ROA -0.4% - with debt at 4.27 times equity and a free-cash-flow yield of 39.0%. Debt of 4.27 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.76% at a payout ratio of 58%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Operating Segments 100% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | -0.6% |
|---|---|---|---|
| GLS Moat | 2.7 / 10 | ROE | -3.0% |
| Debt / equity | 4.27 | ROA | -0.4% |
| Free-cash-flow yield | 39.0% | Payout ratio | 58% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 42: Weak
With a Wheel Score of 42 Designer Brands Inc. sits in the Weak band. It fails filter 5, can repay its debt - 3.9 years to repay its debt (over 3); and filter 7, a premium worth selling - implied volatility 83% (over 80%); and filter 8, big enough - market cap $371M (under $1.0B); Moat (weak) is its weakest part.
Implied volatility is 83%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 11,436 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 960k shares a day on a market cap of $371M, with a beta of 1.28 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 3.9 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 83% (over 80%) |
| 8 | Big enough | Fails | market cap $371M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 51% below fair value | |
| Premium | Fair | implied volatility 83% | |
| Moat | Weak | moat 2.7/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Fair | 3,887 contracts a day, 11,436 open interest | |
| Stability | Fair | beta 1.28, $371M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 8 Dec 2026 (before the open), 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Apparel - Footwear & Accessories
The 12 companies below are the closest to Designer Brands Inc. by market cap within the Apparel - Footwear & Accessories industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RCKY Rocky Brands, Inc. | 54.60 | 46.74 | -17% | 16No options | $411M |
| FOSL Fossil Group, Inc. | 7.62 | - | - | 14Weak | $451M |
| WEYS Weyco Group, Inc. | 64.59 | 64.47 | -0% | 19No options | $617M |
| VRA Vera Bradley, Inc. | 7.53 | 20.22 | +63% | 42Weak | $216M |
| REF Reformation Inc. (California) | 18.41 | 0.3499 | -5161% | 34Weak | $1.1B |
| MCRAA McRae Industries, Inc. | 49.91 | 35.11 | -42% | 18No options | $113M |
| MCRAB McRae Industries, Inc. | 50.00 | 35.13 | -42% | 18No options | $113M |
| LAKE Lakeland Industries, Inc. | 8.93 | 7.17 | -25% | 20Weak | $89M |
| WWW Wolverine World Wide, Inc. | 23.50 | 33.32 | +29% | 48Weak | $1.9B |
| CPRI Capri Holdings Limited | 21.23 | 26.47 | +20% | 47Weak | $2.2B |
| SHOO Steven Madden, Ltd. | 46.98 | 35.75 | -31% | 45Weak | $3.4B |
| BSHI Boss Holdings, Inc. | 13.01 | 33.07 | +61% | 28No options | $21M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about DBI
What kind of share is DBI?
DBI is Designer Brands Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is DBI undervalued right now?
By the GLS models, yes: at 7.25 the stock is 51% below the average fair value of 14.76 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DBI and what does it mean?
DBI scores 42 out of 100 (Weak) - it fails Wheel Trade Filters 5, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for DBI?
14.76 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Designer Brands Inc. report earnings next?
The next earnings report is due on 8 Dec 2026 (before the open), 33 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does DBI have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 11,436 open interest across all expiries and implied volatility of 83% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.