3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Digital Brands Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 39.65%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Digital Brands Group's 3-Year ROIIC % or its related term are showing as below:
DBGI's 3-Year ROIIC % is ranked better than 83.63% of 1057
companies
in the Retail - Cyclical industry
Industry Median: 4.64
vs DBGI: 39.65
Digital Brands Group (NAS:DBGI) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Digital Brands Group 3-Year ROIIC % Related Terms
Digital Brands Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Digital Brands Group's 3-Year ROIIC % 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.
DBGI vs LVLU, IVDN, LSEB: 3-Year ROIIC % Comparison
For the Apparel Retail subindustry, Digital Brands Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Digital Brands Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Digital Brands Group's 3-Year ROIIC % falls into.
Digital Brands Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -23.86 (Dec. 2025) - -15.154 (Dec. 2022) )
/
( 30.163 (Dec. 2025) - 52.119 (Dec. 2022) )
=
-8.706
/
-21.956
=
39.65%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Digital Brands Group (DBGI) has a 3-Year ROIIC % of 39.65 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Digital Brands Group and its competitors. According to the industry distribution chart, Digital Brands Group ranks #173 out of 1057 companies in the Retail - Cyclical industry, placing it in the top 16.4%.
Is Digital Brands Group's 3-Year ROIIC % too high?
Digital Brands Group's current 3-Year ROIIC % is 39.65. The Retail - Cyclical industry median 3-Year ROIIC % is 4.64. Digital Brands Group's value of 39.65 is 754.5% above this industry median. Based on the distribution chart, Digital Brands Group ranks #173 out of 1057 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position 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 3-Year ROIIC % compare to LVLU and IVDN?
According to the Retail - Cyclical industry distribution chart, Digital Brands Group ranks #173 out of 1057 companies for 3-Year ROIIC %. This places Digital Brands Group in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.64. Digital Brands Group's value of 39.65 is 754.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.64, based on 1,057 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Brands Group's current 3-Year ROIIC % of 39.65 is 754.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Digital Brands Group and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Brands Group's current 3-Year ROIIC % is 39.65. 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 $0.76 — trading 243.6% above its estimated fair value. The current 3-Year ROIIC % is 39.65 and 754.5% above the Retail - Cyclical industry median of 4.64. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Digital Brands Group (DBGI), the current 3-Year ROIIC % is 39.65 as of Dec. 2025. 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 $0.76 is trading 243.6% above its estimated GF Value™ of $0.22.
GuruFocus considers Digital Brands Group to be Significantly Overvalued.
Key valuation signals for DBGI:
3-Year ROIIC %: 39.65
GF Value™: $0.22 vs. price of $0.76 (243.6% above fair value)
Industry Position: 754.5% above the Retail - Cyclical median (#173 of 1057)
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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