Distribution Solutions Group, Inc.

NasdaqGS:DSGR Stock Report

Market Cap: US$1.8b

Distribution Solutions Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: DSGR ($39.2) is trading above our estimate of fair value ($36.17)

Significantly Below Fair Value: DSGR is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As DSGR is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DSGR. This is calculated by dividing DSGR's market cap by their current revenue.
What is DSGR's PS Ratio?
PS Ratio1.1x
SalesUS$1.73b
Market CapUS$1.83b

Price to Sales Ratio vs Peers

How does DSGR's PS Ratio compare to its peers?

The above table shows the PS ratio for DSGR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
XMTR Xometry
2.9x15.3%US$1.5b
WLFC Willis Lease Finance
2.7xn/aUS$1.4b
HEES H&E Equipment Services
1.4x3.8%US$2.2b
DNOW DNOW
0.7x2.8%US$1.6b
DSGR Distribution Solutions Group
1.1x9.4%US$1.8b

Price-To-Sales vs Peers: DSGR is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

How does DSGR's PS Ratio compare vs other companies in the US Trade Distributors Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
TITN Titan Machinery
0.1x-2.1%US$366.26m
ALTG Alta Equipment Group
0.1x2.5%US$267.71m
BYU BAIYU Holdings
0.07xn/aUS$8.94m
MWG Multi Ways Holdings
0.2xn/aUS$8.36m
DSGR 1.1xIndustry Avg. 1.1xNo. of Companies10PS01.22.43.64.86+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DSGR is good value based on its Price-To-Sales Ratio (1.1x) compared to the US Trade Distributors industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

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

DSGR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: DSGR is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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 DSGR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.20
US$43.00
+9.7%
2.3%US$44.00US$42.00n/a2
Nov ’25US$35.79
US$41.00
+14.6%
2.4%US$42.00US$40.00n/a2
Oct ’25US$38.09
US$41.00
+7.6%
2.4%US$42.00US$40.00n/a2
Sep ’25US$37.22
US$41.00
+10.2%
2.4%US$42.00US$40.00n/a2
Jul ’25US$29.04
US$41.00
+41.2%
2.4%US$42.00US$40.00n/a2
Jun ’25US$33.38
US$41.00
+22.8%
2.4%US$42.00US$40.00n/a2
May ’25US$32.32
US$39.00
+20.7%
7.7%US$42.00US$36.00n/a2
Apr ’25US$34.61
US$39.00
+12.7%
7.7%US$42.00US$36.00n/a2
Mar ’25US$31.00
US$36.00
+16.1%
5.6%US$38.00US$34.00n/a2
Feb ’25US$32.92
US$36.00
+9.4%
5.6%US$38.00US$34.00n/a2
Jan ’25US$31.56
US$36.00
+14.1%
5.6%US$38.00US$34.00n/a2
Dec ’24US$26.21
US$36.00
+37.4%
5.6%US$38.00US$34.00n/a2
Nov ’24US$30.07
US$36.00
+19.7%
5.6%US$38.00US$34.00US$35.792

Analyst Forecast: Target price is less than 20% higher than the current share price.

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