Digi Communications Valuation

Q: What is the Fair Price of DIGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DIGI (RON64) is trading below our estimate of [[fair value]] (RON256.2)

Is DIGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DIGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DIGI (RON64) is trading below our estimate of fair value (RON256.2)

Significantly Below Fair Value: DIGI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DIGI?

Key metric: As DIGI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DIGI. This is calculated by dividing DIGI's market cap by their current earnings.
What is DIGI's PE Ratio?
PE Ratio	3x
Earnings	€413.44m
Market Cap	€1.22b

DIGI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	3x
PEG Ratio	-0.06x

Price to Earnings Ratio vs Peers

How does DIGI's PE Ratio compare to its peers?

The above table shows the PE ratio for DIGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	41.3x
MTNU MTN Uganda	8x	n/a	USh4.8t
JTS Jasmine Technology Solution	102.7x	n/a	฿47.3b
ETEL Telecom Egypt	6x	20.1%	ج.م55.3b
603220 China Bester Group Telecom	48.5x	n/a	CN¥9.1b
DIGI Digi Communications	3x	-47.0%	RON 6.1b

Price-To-Earnings vs Peers: DIGI is good value based on its Price-To-Earnings Ratio (3x) compared to the peer average (41.3x).

Price to Earnings Ratio vs Industry

How does DIGI's PE Ratio compare vs other companies in the European Telecom Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DIGI is good value based on its Price-To-Earnings Ratio (3x) compared to the European Telecom industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is DIGI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DIGI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DIGI's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DIGI forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	RON 64.00	RON 82.08 +28.3%	4.3%	RON 87.44	RON 76.99	n/a	5
Nov ’25	RON 64.80	RON 82.07 +26.7%	4.3%	RON 87.40	RON 76.94	n/a	5
Oct ’25	RON 65.80	RON 76.70 +16.6%	17.7%	RON 87.38	RON 49.99	n/a	5
Sep ’25	RON 63.40	RON 76.70 +21.0%	17.7%	RON 87.38	RON 49.99	n/a	5
Aug ’25	RON 63.00	RON 64.75 +2.8%	27.9%	RON 83.89	RON 37.95	n/a	5
Jul ’25	RON 67.00	RON 61.74 -7.9%	26.0%	RON 84.02	RON 38.00	n/a	5
Jun ’25	RON 67.00	RON 54.32 -18.9%	22.3%	RON 70.05	RON 37.98	n/a	5
May ’25	RON 56.20	RON 54.34 -3.3%	22.3%	RON 70.06	RON 37.99	n/a	5
Apr ’25	RON 50.00	RON 51.31 +2.6%	18.3%	RON 66.50	RON 37.97	n/a	5
Mar ’25	RON 48.80	RON 48.57 -0.5%	12.3%	RON 54.99	RON 37.93	n/a	5
Feb ’25	RON 45.80	RON 48.64 +6.2%	12.3%	RON 55.05	RON 38.03	n/a	5
Jan ’25	RON 44.00	RON 46.99 +6.8%	13.7%	RON 54.97	RON 37.97	n/a	5
Dec ’24	RON 41.00	RON 45.97 +12.1%	11.7%	RON 52.96	RON 37.97	n/a	5
Nov ’24	RON 38.40	RON 43.09 +12.2%	8.2%	RON 47.28	RON 37.97	RON 64.80	4
Oct ’24	RON 36.80	RON 42.79 +16.3%	8.6%	RON 47.36	RON 38.24	RON 65.80	4
Sep ’24	RON 35.70	RON 42.24 +18.3%	7.8%	RON 47.03	RON 37.96	RON 63.40	5
Aug ’24	RON 34.80	RON 42.50 +22.1%	7.4%	RON 47.07	RON 38.42	RON 63.00	5
Jul ’24	RON 34.30	RON 42.50 +23.9%	7.4%	RON 47.07	RON 38.42	RON 67.00	5
Jun ’24	RON 35.90	RON 42.50 +18.4%	7.4%	RON 47.07	RON 38.42	RON 67.00	5
May ’24	RON 36.90	RON 42.39 +14.9%	7.4%	RON 46.97	RON 38.32	RON 56.20	5
Apr ’24	RON 34.30	RON 42.39 +23.6%	7.4%	RON 46.97	RON 38.32	RON 50.00	5
Mar ’24	RON 32.80	RON 42.04 +28.2%	7.5%	RON 46.56	RON 37.99	RON 48.80	5
Feb ’24	RON 33.60	RON 45.06 +34.1%	9.7%	RON 50.11	RON 38.15	RON 45.80	4
Jan ’24	RON 31.50	RON 46.41 +47.3%	10.5%	RON 50.25	RON 38.25	RON 44.00	4
Dec ’23	RON 32.60	RON 46.41 +42.4%	10.5%	RON 50.25	RON 38.25	RON 41.00	4
Nov ’23	RON 30.40	RON 52.35 +72.2%	18.1%	RON 61.37	RON 37.98	RON 38.40	4

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.