Stock fact sheet · data as of
Designer Brands Inc. (DBI): fair value, margin of safety and Wheel Score
Consumer Cyclical · Apparel - Footwear & Accessories · United States · Blend
Is DBI undervalued?
At 6.42 (close of 16 Oct 2026), DBI trades 57% below the GLS average fair value of 14.85. 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.
The nightly engine files DBI under Blend.
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 | 18.43 | +187% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 6.05 | -6% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 17.31 | +170% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 7.57 | +18% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.89 | -24% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 52.96 | +725% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 20.15 | +214% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 2.94 | -54% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 3.36 | -48% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.62 | -390% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.00 | -7% | 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 Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 2.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, 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 44.0%. 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 3.12% 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 | 2.8 / 10 | ROE | -3.0% |
| Debt / equity | 4.27 | ROA | -0.4% |
| Free-cash-flow yield | 44.0% | Payout ratio | 58% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 74: Good
With a Wheel Score of 74 - the Good band - Designer Brands Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 4/15, Premium 18/20, Stability 12/20; Moat (4/15) scores lowest.
Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (18 of 20) because volatility this high usually comes with a reason. Chain open interest is 24,436 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 895k shares a day on a market cap of $328M, with a beta of 1.25 - 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 gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 57% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 18 / 20 | implied volatility 70% | |
| Stability | 12 / 20 | 895k shares/day, $328M cap, beta 1.25 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 8 Dec 2026, 53 days away - outside the window of a 30-45-day put sold today.
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. | 45.12 | 36.04 | -25% | 27No options | $338M |
| FOSL Fossil Group, Inc. | 6.88 | - | - | 43Weak | $407M |
| WEYS Weyco Group, Inc. | 52.46 | 60.67 | +14% | 39No options | $501M |
| VRA Vera Bradley, Inc. | 5.63 | 20.22 | +72% | 45Weak | $160M |
| REF Reformation Inc. (California) | 13.56 | 0.3499 | -3775% | 34Weak | $801M |
| MCRAA McRae Industries, Inc. | 50.27 | 34.78 | -45% | 23No options | $114M |
| MCRAB McRae Industries, Inc. | 50.00 | 34.72 | -44% | 23No options | $113M |
| LAKE Lakeland Industries, Inc. | 9.38 | 7.17 | -31% | 34Weak | $93M |
| WWW Wolverine World Wide, Inc. | 18.83 | 33.55 | +44% | 80Prime | $1.5B |
| CPRI Capri Holdings Limited | 15.85 | 17.49 | +9% | 75Good | $1.8B |
| SHOO Steven Madden, Ltd. | 44.74 | 35.40 | -26% | 57Fair | $3.3B |
| BSHI Boss Holdings, Inc. | 16.00 | 32.81 | +51% | 39No options | $26M |
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Start free See the Sunday ScanQuestions about DBI
Is DBI undervalued right now?
By the GLS models, yes: at 6.42 the stock is 57% below the average fair value of 14.85 (data as of 16 Oct 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 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DBI?
14.85 per share as of 16 Oct 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), 53 days from the data date of 16 Oct 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 60 listed contracts with 24,436 open interest across all expiries and implied volatility of 70% 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.