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Digital Brands Group, Inc. Common Stock (DBGI) — WACC Analysis

WACC Breakdown

Digital Brands Group, Inc. Common Stock (DBGI) has a weighted average cost of capital (WACC) of 4.0%. The cost of equity is 7.9%, derived from a beta of 0.46 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.9%. The capital structure is 10.4% equity and 89.6% debt.

Interpretation

A WACC of 4.0% suggests that the market views Digital Brands Group, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare DBGI's WACC of 4.0% against industry peers to gauge its relative financing costs. A beta of 0.46 reflects the stock's volatility relative to the broader market.

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VALUATION

DBGI WACC: 4.00% for Digital Brands Group, Inc. Common Stock

Current inputs imply a 7.93% cost of equity and a 2.87% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Digital Brands Group, Inc. Common Stock Common Stock (DBGI) WACC Results
Weighted Average Cost of Capital
4.00%
Cost of Equity
7.93%
Risk-Free Rate5.22%
Beta0.46
Market Risk Premium4.23%
Cost of Debt
2.87%
Pre-Tax Cost of Debt2.87%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 10.40%($2.01M)
Debt: 89.60%($17.33M)
Equity Component
0.82%
10.40% × 7.93%
Debt Component
2.57%
89.60% × 2.87%

Digital Brands Group, Inc. Common Stock (DBGI) WACC in context

Digital Brands Group, Inc. Common Stock (DBGI) currently screens with an estimated WACC of 4.00%. That blends a 7.93% cost of equity, a 2.87% pre-tax cost of debt, and a 10.40% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What DBGI WACC implies

A 4.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DBGI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.46 and equity accounts for 10.40% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

DBGI WACC: 4.00% — Digital Brands Group, Inc. Common Stock Cost of Capital (October 2026) | DeepViews