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

3/6

Valuation Score 3/6

  • 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 ($31.75) is trading below our estimate of fair value ($43.42)

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?

Other financial metrics that can be useful for relative valuation.

DGII 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/Revenue3x
Enterprise Value/EBITDA15.8x
PEG Ratio1.3x

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 Average30.8x
HLIT Harmonic
18x17.8%US$1.5b
EXTR Extreme Networks
18.6xn/aUS$1.5b
CALX Calix
74.7x24.6%US$2.2b
ITRN Ituran Location and Control
11.7xn/aUS$565.6m
DGII Digi International
72.2x57.2%US$1.2b

Price-To-Earnings vs Peers: DGII is expensive based on its Price-To-Earnings Ratio (72.2x) compared to the peer average (30.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DGII is expensive based on its Price-To-Earnings Ratio (72.2x) compared to the US Communications industry average (31.4x).


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 Ratio72.2x
Fair PE Ratio41.5x

Price-To-Earnings vs Fair Ratio: DGII is expensive based on its Price-To-Earnings Ratio (72.2x) compared to the estimated Fair Price-To-Earnings Ratio (41.5x).


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$31.75
US$39.33
+23.9%
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$45.00n/a7
Oct ’24US$27.00
US$47.86
+77.2%
3.6%US$50.00US$45.00n/a7
Sep ’24US$33.14
US$47.86
+44.4%
3.6%US$50.00US$45.00n/a7
Aug ’24US$42.94
US$47.71
+11.1%
3.7%US$50.00US$45.00n/a7
Jul ’24US$39.39
US$47.71
+21.1%
3.7%US$50.00US$45.00n/a7
Jun ’24US$35.67
US$47.71
+33.8%
3.7%US$50.00US$45.00n/a7
May ’24US$29.13
US$47.83
+64.2%
3.9%US$50.00US$45.00n/a6
Apr ’24US$33.68
US$47.83
+42.0%
3.9%US$50.00US$45.00n/a6
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
Oct ’23US$34.57
US$40.83
+18.1%
5.2%US$45.00US$38.00US$27.006
Sep ’23US$32.23
US$40.80
+26.6%
5.7%US$45.00US$38.00US$33.145
Aug ’23US$29.54
US$32.20
+9.0%
8.4%US$36.00US$30.00US$42.945
Jul ’23US$23.73
US$32.20
+35.7%
8.4%US$36.00US$30.00US$39.395
Jun ’23US$23.08
US$32.20
+39.5%
8.4%US$36.00US$30.00US$35.675
May ’23US$18.92
US$32.00
+69.1%
6.6%US$35.00US$30.00US$29.134
Apr ’23US$21.58
US$31.30
+45.0%
7.5%US$35.00US$28.50US$33.685
Mar ’23US$19.35
US$31.30
+61.8%
7.5%US$35.00US$28.50US$33.885

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.