Question 1

What is Digital Brands Group, Inc. Common Stock's WACC?

Accepted Answer

Digital Brands Group, Inc. Common Stock (DBGI) has a Weighted Average Cost of Capital (WACC) of 20.00%. This is calculated using a Cost of Equity of 5.75% (via CAPM with a beta of 0.03) and a pre-tax Cost of Debt of 105.11%, with an equity weight of 84.69% in the capital structure.

Question 2

Is Digital Brands Group, Inc. Common Stock's WACC high or low?

Accepted Answer

Digital Brands Group, Inc. Common Stock's WACC of 20.00% is above the typical range, indicating higher perceived risk and cost of capital. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Digital Brands Group, Inc. Common Stock's WACC calculated?

Accepted Answer

Digital Brands Group, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 5.75% is derived from the CAPM model using a beta of 0.03. The pre-tax Cost of Debt (Rd) is 105.11%. The capital structure is 84.69% equity and 15.31% debt.

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

WACC 构成

解读

Digital Brands Group, Inc. Common Stock（DBGI）WACC：20.00%

WACC计算器

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

DBGI 公司分析

DBGI DCF 估值

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