DGII Relative Valuation
DGII's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DGII is overvalued; if below, it's undervalued.
Historical Valuation
Digi International Inc (DGII) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.82 is considered Undervalued compared with the five-year average of 15.81. The fair price of Digi International Inc (DGII) is between 42.96 to 51.32 according to relative valuation methord. Compared to the current price of 31.14 USD , Digi International Inc is Undervalued By 27.52%.
Relative Value
Fair Zone
42.96-51.32
Current Price：31.14
27.52%
Undervalued
15.10
PE
1Y
3Y
5Y
Trailing
Forward
11.98
EV/EBITDA
Digi International Inc. (DGII) has a current EV/EBITDA of 11.98. The 5-year average EV/EBITDA is 12.60. The thresholds are as follows: Strongly Undervalued below 8.32, Undervalued between 8.32 and 10.46, Fairly Valued between 14.74 and 10.46, Overvalued between 14.74 and 16.88, and Strongly Overvalued above 16.88. The current Forward EV/EBITDA of 11.98 falls within the Historic Trend Line -Fairly Valued range.
21.58
EV/EBIT
Digi International Inc. (DGII) has a current EV/EBIT of 21.58. The 5-year average EV/EBIT is 27.82. The thresholds are as follows: Strongly Undervalued below 12.07, Undervalued between 12.07 and 19.95, Fairly Valued between 35.70 and 19.95, Overvalued between 35.70 and 43.57, and Strongly Overvalued above 43.57. The current Forward EV/EBIT of 21.58 falls within the Historic Trend Line -Fairly Valued range.
2.80
PS
Digi International Inc. (DGII) has a current PS of 2.80. The 5-year average PS is 2.32. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 1.86, Fairly Valued between 2.77 and 1.86, Overvalued between 2.77 and 3.22, and Strongly Overvalued above 3.22. The current Forward PS of 2.80 falls within the Overvalued range.
13.49
P/OCF
Digi International Inc. (DGII) has a current P/OCF of 13.49. The 5-year average P/OCF is 13.41. The thresholds are as follows: Strongly Undervalued below 1.32, Undervalued between 1.32 and 7.36, Fairly Valued between 19.45 and 7.36, Overvalued between 19.45 and 25.49, and Strongly Overvalued above 25.49. The current Forward P/OCF of 13.49 falls within the Historic Trend Line -Fairly Valued range.
13.80
P/FCF
Digi International Inc. (DGII) has a current P/FCF of 13.80. The 5-year average P/FCF is 15.11. The thresholds are as follows: Strongly Undervalued below 0.92, Undervalued between 0.92 and 8.01, Fairly Valued between 22.21 and 8.01, Overvalued between 22.21 and 29.30, and Strongly Overvalued above 29.30. The current Forward P/FCF of 13.80 falls within the Historic Trend Line -Fairly Valued range.
Digi International Inc (DGII) has a current Price-to-Book (P/B) ratio of 2.00. Compared to its 3-year average P/B ratio of 2.08 , the current P/B ratio is approximately -3.90% higher. Relative to its 5-year average P/B ratio of 1.85, the current P/B ratio is about 7.97% higher. Digi International Inc (DGII) has a Forward Free Cash Flow (FCF) yield of approximately 8.51%. Compared to its 3-year average FCF yield of 5.02%, the current FCF yield is approximately 69.63% lower. Relative to its 5-year average FCF yield of 6.07% , the current FCF yield is about 40.29% lower.
1.91
P/B
Median3y
2.08
Median5y
1.85
8.67
FCF Yield
Median3y
5.02
Median5y
6.07
Competitors Valuation Multiple
The average P/S ratio for DGII's competitors is 1.93, providing a benchmark for relative valuation. Digi International Inc Corp (DGII) exhibits a P/S ratio of 2.80, which is 45.36% above the industry average. Given its robust revenue growth of -2.97%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DGII increased by 5.70% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.71 to 10.04.
The secondary factor is the Revenue Growth, contributed -2.97%to the performance.
Overall, the performance of DGII in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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