Designer Brands stock: fair value
DBIThe fair value of Designer Brands under our model is $8.75, the price is 26% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Modestly undervaluedIn our model the price counts as cheap below $5.83 and expensive above $17.49 (uncertainty very high, based on the price swings of the past year).
The two parts of the fair value come to $12.18 (cash-flow model) and $5.31 (industry comparison), and the gap between them shows how uncertain the estimate is.
Calculated with a cost of equity of 12.8%. At 13.8% the fair value would be $8.17, at 11.8% it would be $9.47.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (17.5).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.8%. Discounted at 12.8% (government bond yield 3.8% plus beta 2 times a risk premium of 4.5%); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $12.18 per share: free cash flow for the next ten years, each year discounted to today at 12.8%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 12.8%) |
|---|---|---|---|---|
| 2027 | $78.97M | extrapolated at −11.2% | 0.8869 | $70.04M |
| 2028 | $73.69M | extrapolated at −6.7% | 0.7866 | $57.96M |
| 2029 | $71.08M | extrapolated at −3.5% | 0.6977 | $49.59M |
| 2030 | $70.14M | extrapolated at −1.3% | 0.6188 | $43.4M |
| 2031 | $70.29M | extrapolated at 0.2% | 0.5488 | $38.58M |
| 2032 | $71.21M | extrapolated at 1.3% | 0.4867 | $34.66M |
| 2033 | $72.68M | extrapolated at 2.1% | 0.4317 | $31.38M |
| 2034 | $74.56M | extrapolated at 2.6% | 0.3829 | $28.55M |
| 2035 | $76.77M | extrapolated at 3.0% | 0.3396 | $26.07M |
| 2036 | $79.25M | extrapolated at 3.2% | 0.3012 | $23.87M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $404.1M |
| Terminal value: cash flow 2036 × (1 + 3.8%) / (12.8% − 3.8%) | $922.46M |
| Present value of terminal value (× 0.3012) | $277.83M |
| Equity value (sum plus present value of terminal value) | $681.93M |
| Shares (diluted) | 55.97M |
| Value per share (equity value divided by shares) | $12.18 |
| Earnings per share, last twelve months | $0.30 |
| × 17.5 (industry P/E) | $5.31 |
| Fair value (average of both parts) | $8.75 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Jan 2026
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 18 Oct 2026)
- Valuation signal Fairly valued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.