Digi International Inc.

NasdaqGS:DGII Stock Report

Market Cap: US$1.2b

Digi International Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 DGII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DGII ($32.95) is trading below our estimate of fair value ($75.82)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DGII. This is calculated by dividing DGII's market cap by their current earnings.
What is DGII's PE Ratio?
PE Ratio53.6x
EarningsUS$22.51m
Market CapUS$1.21b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DGII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
HLIT Harmonic
17.1x36.7%US$1.5b
ITRN Ituran Location and Control
11.1x5.5%US$576.5m
NTGR NETGEAR
35.7xn/aUS$699.1m
GILT Gilat Satellite Networks
18.1x4.5%US$298.8m
DGII Digi International
53.6x32.3%US$1.2b

Price-To-Earnings vs Peers: DGII is expensive based on its Price-To-Earnings Ratio (53.6x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

How does DGII's PE Ratio compare vs other companies in the US Communications Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ATVK Ameritek Ventures
3.4xn/aUS$429.26k
NIHK Video River Networks
0.2xn/aUS$310.03k
No more companies available in this PE range
DGII 53.6xIndustry Avg. 24.2xNo. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DGII is expensive based on its Price-To-Earnings Ratio (53.6x) compared to the North American Communications industry average (23x).

Price to Earnings Ratio vs Fair Ratio

What is DGII'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.

DGII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.6x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: DGII is expensive based on its Price-To-Earnings Ratio (53.6x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

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 DGII forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.95
US$37.10
+12.6%
13.0%US$45.00US$32.00n/a5
Nov ’25US$29.05
US$34.80
+19.8%
18.3%US$45.00US$26.00n/a5
Oct ’25US$27.66
US$34.80
+25.8%
18.3%US$45.00US$26.00n/a5
Sep ’25US$29.46
US$34.80
+18.1%
18.3%US$45.00US$26.00n/a5
Aug ’25US$25.11
US$35.20
+40.2%
17.2%US$45.00US$27.00n/a5
Jul ’25US$22.91
US$35.60
+55.4%
15.5%US$45.00US$29.00n/a5
Jun ’25US$24.36
US$35.60
+46.1%
15.5%US$45.00US$29.00n/a5
May ’25US$30.72
US$38.20
+24.3%
12.2%US$45.00US$32.00n/a5
Apr ’25US$31.35
US$39.33
+25.5%
12.6%US$45.00US$32.00n/a6
Mar ’25US$29.86
US$39.33
+31.7%
12.6%US$45.00US$32.00n/a6
Feb ’25US$27.68
US$37.57
+35.7%
12.2%US$45.00US$32.00n/a7
Jan ’25US$26.00
US$36.14
+39.0%
14.2%US$45.00US$30.00n/a7
Dec ’24US$23.80
US$36.14
+51.9%
14.2%US$45.00US$30.00n/a7
Nov ’24US$23.40
US$47.86
+104.5%
3.6%US$50.00US$45.00US$29.057
Oct ’24US$27.00
US$47.86
+77.2%
3.6%US$50.00US$45.00US$27.667
Sep ’24US$33.14
US$47.86
+44.4%
3.6%US$50.00US$45.00US$29.467
Aug ’24US$42.94
US$47.71
+11.1%
3.7%US$50.00US$45.00US$25.117
Jul ’24US$39.39
US$47.71
+21.1%
3.7%US$50.00US$45.00US$22.917
Jun ’24US$35.67
US$47.71
+33.8%
3.7%US$50.00US$45.00US$24.367
May ’24US$29.13
US$47.83
+64.2%
3.9%US$50.00US$45.00US$30.726
Apr ’24US$33.68
US$47.83
+42.0%
3.9%US$50.00US$45.00US$31.356
Mar ’24US$33.88
US$47.83
+41.2%
3.9%US$50.00US$45.00US$29.866
Feb ’24US$34.93
US$48.00
+37.4%
3.4%US$50.00US$46.00US$27.686
Jan ’24US$36.55
US$48.00
+31.3%
3.4%US$50.00US$46.00US$26.006
Dec ’23US$41.13
US$48.00
+16.7%
3.4%US$50.00US$46.00US$23.806
Nov ’23US$37.91
US$40.83
+7.7%
5.2%US$45.00US$38.00US$23.406

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

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