Destination XL Group, Inc.

DXLG

Consumer CyclicalApparel - RetailNASDAQ

$0.66

Market Cap: $36.09M

Destination XL Group, Inc. (DXLG) Valuation Summary

Updated May 11, 2026 02:51

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.07 – $37.91	$1.44	+118.7%
Revenue DCF 10Y	$0.22 – $39.26	$2.93	+344.4%
▸ Trading Multiples
EV/Revenue	-$0.47 – $5.22	$1.88	+185.7%

Valuation History

DCF Analysis

Destination XL Group, Inc. (DXLG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.93

Market Price

$0.66

Upside / Downside

+344.4%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -3.1% to a target of 7.7% over 5 years, discounted at a WACC of 6.7%, Destination XL Group, Inc. (DXLG) has an intrinsic value of $2.93 per share (range: $0.22 – $39.26).

Key Assumptions

Current Operating Margin

-3.1%

Target Operating Margin

7.7%

WACC

6.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.4%

Tax Rate

5.9%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	419	-3.7%	-1.0%	-4	-4	10	(16)	-2	-9	-8
2027	439	4.7%	1.2%	5	5	10	(18)	2	-5	-5
2028	461	5.0%	3.4%	16	15	11	(20)	3	3	2
2029	490	6.3%	5.5%	27	26	12	(23)	4	11	9
2030	531	8.4%	7.7%	41	39	13	(26)	5	20	15
2031	573	7.9%	7.7%	44	42	14	(29)	5	21	15
2032	565	-1.4%	7.7%	44	41	13	(30)	-1	25	17
2033	563	-0.3%	7.7%	43	41	13	(31)	-0	23	14
2034	567	0.8%	7.7%	44	41	13	(33)	1	21	12
2035	578	1.9%	7.7%	45	42	14	(35)	1	20	11

Enterprise Value Bridge

Sum of PV(FCFF)82

Terminal Value (Gordon Growth at 3.0%)550

PV of Terminal Value298

Enterprise Value380

(–) Net Debt221

Equity Value158

(÷) Shares Outstanding54

Fair Value per Share$2.93

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.7%	$-6	$-2	$12	$26	$39
5.7%	$-6	$-3	$6	$14	$23
6.7%	$-6	$-3	$3	$9	$15
7.7%	$-6	$-3	$1	$6	$11
8.7%	$-6	$-4	$0	$4	$8

Current price: $0.66. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Destination XL Group, Inc. (DXLG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.44

Market Price

$0.66

Upside / Downside

+118.7%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-3.1%

Target Operating Margin

7.7%

WACC

6.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.4%

Tax Rate

5.9%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	419	-3.7%	-1.0%	-4	-4	10	(17)	-2	-10	-9
2027	439	4.7%	1.2%	5	5	10	(20)	2	-7	-7
2028	461	5.0%	3.4%	16	15	11	(23)	3	-1	-0
2029	490	6.3%	5.5%	27	26	12	(27)	4	7	5
2030	531	8.4%	7.7%	41	39	13	(32)	5	14	11

Enterprise Value Bridge

Sum of PV(FCFF)-0

Terminal Value (Gordon Growth at 3.0%)401

PV of Terminal Value300

Enterprise Value299

(–) Net Debt221

Equity Value78

(÷) Shares Outstanding54

Fair Value per Share$1.44

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.7%	$-5	$-5	$9	$24	$38
5.7%	$-5	$-5	$4	$13	$22
6.7%	$-5	$-5	$1	$8	$14
7.7%	$-5	$-5	$0	$5	$10
8.7%	$-5	$-5	$-1	$3	$7

Current price: $0.66. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.88

Market Price

$0.66

Upside / Downside

+185.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Destination XL Group, Inc. (DXLG) has a fair value of $1.88 based on 9 comparable companies in the Apparel - Retail industry.

EV/Revenue Valuation — Apparel - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Destination XL Group, Inc.DXLG	36	0.6x	0.6x
Tilly's, Inc.TLYS	125	0.5x	0.4x
Sypris Solutions, Inc.SYPR	74	0.8x	1.1x
Gogoro Inc.GGR	59	1.4x	1.2x
The Cato CorporationCATO	52	0.3x	0.2x
Allbirds, Inc.BIRD	46	0.4x	0.3x
Century Casinos, Inc.CNTY	43	1.8x	1.8x
Live Ventures IncorporatedLIVE	41	0.6x	0.7x
Natural Health Trends Corp.NHTC	35	0.8x	—
Northann Corp.NCL	14	1.2x	—
Industry Median		0.8x	0.7x
(*) Revenue		435	439
= Enterprise Value		338	308
(-) Net Debt		221	221
Equity Value		117	87
(/) Outstanding shares		54	54
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.88

+185.7%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.07 – $37.91

$1.44

+118.7%

Revenue DCF 10Y

$0.22 – $39.26

$2.93

+344.4%

▸ Trading Multiples

EV/Revenue

-$0.47 – $5.22

$1.88

+185.7%

DCF Analysis

Destination XL Group, Inc. (DXLG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.93

Market Price

$0.66

Upside / Downside

+344.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-3.1%

Target Operating Margin

7.7%

WACC

6.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.4%

Tax Rate

5.9%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	419	-3.7%	-1.0%	-4	-4	10	(16)	-2	-9	-8
2027	439	4.7%	1.2%	5	5	10	(18)	2	-5	-5
2028	461	5.0%	3.4%	16	15	11	(20)	3	3	2
2029	490	6.3%	5.5%	27	26	12	(23)	4	11	9
2030	531	8.4%	7.7%	41	39	13	(26)	5	20	15
2031	573	7.9%	7.7%	44	42	14	(29)	5	21	15
2032	565	-1.4%	7.7%	44	41	13	(30)	-1	25	17
2033	563	-0.3%	7.7%	43	41	13	(31)	-0	23	14
2034	567	0.8%	7.7%	44	41	13	(33)	1	21	12
2035	578	1.9%	7.7%	45	42	14	(35)	1	20	11

Enterprise Value Bridge

Sum of PV(FCFF)82

Terminal Value (Gordon Growth at 3.0%)550

PV of Terminal Value298

Enterprise Value380

(–) Net Debt221

Equity Value158

(÷) Shares Outstanding54

Fair Value per Share$2.93

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.7%	$-6	$-2	$12	$26	$39
5.7%	$-6	$-3	$6	$14	$23
6.7%	$-6	$-3	$3	$9	$15
7.7%	$-6	$-3	$1	$6	$11
8.7%	$-6	$-4	$0	$4	$8

Current price: $0.66. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.88

Market Price

$0.66

Upside / Downside

+185.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Destination XL Group, Inc. (DXLG) has a fair value of $1.88 based on 9 comparable companies in the Apparel - Retail industry.

EV/Revenue Valuation — Apparel - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Destination XL Group, Inc.DXLG	36	0.6x	0.6x
Tilly's, Inc.TLYS	125	0.5x	0.4x
Sypris Solutions, Inc.SYPR	74	0.8x	1.1x
Gogoro Inc.GGR	59	1.4x	1.2x
The Cato CorporationCATO	52	0.3x	0.2x
Allbirds, Inc.BIRD	46	0.4x	0.3x
Century Casinos, Inc.CNTY	43	1.8x	1.8x
Live Ventures IncorporatedLIVE	41	0.6x	0.7x
Natural Health Trends Corp.NHTC	35	0.8x	—
Northann Corp.NCL	14	1.2x	—
Industry Median		0.8x	0.7x
(*) Revenue		435	439
= Enterprise Value		338	308
(-) Net Debt		221	221
Equity Value		117	87
(/) Outstanding shares		54	54
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.88

+185.7%