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Digital Brands GroupDBGI -9.40%24 Net-Net Working Capital is $-2.43 as of Mar. 2026. GuruFocus rates DBGI with a GF Score™ of 24/100 and a GF Value™ of $0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 328 Retail - Cyclical companies, Digital Brands Group ranks worse than 304877.74% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Digital Brands Group's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-2.43.
The industry rank for Digital Brands Group's Net-Net Working Capital or its related term are showing as below:
DBGI's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.01 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Digital Brands Group (NAS:DBGI) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Digital Brands Group Net-Net Working Capital Related Terms
Digital Brands Group Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Digital Brands Group's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Digital Brands Group Net-Net Working Capital Chart
DBGI vs LVLU, IVDN, LSEB: Net-Net Working Capital Comparison
For the Apparel Retail subindustry, Digital Brands Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digital Brands Group Price-to-Net-Net-Working-Capital vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Digital Brands Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Digital Brands Group's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-2.43 mean?
Digital Brands Group (DBGI) has a Net-Net Working Capital of $-2.43 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Digital Brands Group According to the industry distribution chart, Digital Brands Group ranks #999999 out of 328 companies in the Retail - Cyclical industry.
Is Digital Brands Group's Net-Net Working Capital too high?
Digital Brands Group's current Net-Net Working Capital is $-2.43. Based on the distribution chart, Digital Brands Group ranks #999999 out of 328 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Digital Brands Group has a GF Score™ of 24/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Brands Group's Net-Net Working Capital compare to LVLU and IVDN?
According to the Retail - Cyclical industry distribution chart, Digital Brands Group ranks #999999 out of 328 companies for Net-Net Working Capital. This places Digital Brands Group in the lower half of its industry. The industry median Net-Net Working Capital is 6.01. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Retail - Cyclical company?
The median Net-Net Working Capital among Retail - Cyclical companies is 6.01, based on 328 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Digital Brands Group For the Retail - Cyclical industry, the median Net-Net Working Capital is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Brands Group's current Net-Net Working Capital is $-2.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Brands Group stock overvalued right now?
Based on GuruFocus' analysis, Digital Brands Group (DBGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.22, compared to a current price of $0.64 — trading 189% above its estimated fair value. The current Net-Net Working Capital is $-2.43. Digital Brands Group's overall GF Score™ is 24/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Digital Brands Group (DBGI), the current Net-Net Working Capital is $-2.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digital Brands Group (DBGI) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Brands Group stock appears to be overvalued.
The current stock price of $0.64 is trading 189% above its estimated GF Value™ of $0.22.
GuruFocus considers Digital Brands Group to be Significantly Overvalued.
Key valuation signals for DBGI:
Net-Net Working Capital: $-2.43
GF Value™: $0.22 vs. price of $0.64 (189% above fair value)
No single metric tells the full story. See the DBGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Brands Group Inc manages a portfolio of lifestyle brands offering apparel products through direct-to-consumer and wholesale distribution channels. It operates in the retail and technology sector, offering apparel products alongside digital tools that support product authentication, data security, and customer engagement. It connects consumers with a range of fashion and lifestyle brands through its platform. Its brand portfolio consists of Bailey 44, DSTLD, Sundry, Stateside, and Avo. The Company operates as a single reportable segment - direct-to-consumer (DTC) fashion brands. It derives its revenue from wholesale and e-commerce transactions.
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