Digi International Valuation

DGII Stock  USD 31.93  0.18  0.57%   
At this time, the firm appears to be undervalued. Digi International shows a prevailing Real Value of $38.79 per share. The current price of the firm is $31.93. Our model computes the value of Digi International from reviewing the firm fundamentals such as Current Valuation of 1.33 B, profit margin of 0.04 %, and Shares Outstanding of 36.26 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
2.1209
Enterprise Value
1.3 B
Enterprise Value Ebitda
17.889
Price Sales
2.6066
Forward PE
17.4216
Undervalued
Today
31.93
Please note that Digi International's price fluctuation is very steady at this time. Calculation of the real value of Digi International is based on 3 months time horizon. Increasing Digi International's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Digi International is useful when determining the fair value of the Digi stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Digi International. Since Digi International is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Digi Stock. However, Digi International's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  31.93 Real  38.79 Target  47.86 Hype  32.07 Naive  32.91
The real value of Digi Stock, also known as its intrinsic value, is the underlying worth of Digi International Company, which is reflected in its stock price. It is based on Digi International's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Digi International's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Digi International's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
38.79
Real Value
41.38
Upside
Estimating the potential upside or downside of Digi International helps investors to forecast how Digi stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Digi International more accurately as focusing exclusively on Digi International's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.460.470.47
Details
Hype
Prediction
LowEstimatedHigh
29.4832.0734.66
Details
Naive
Forecast
LowNext ValueHigh
30.3232.9135.49
Details
6 Analysts
Consensus
LowTarget PriceHigh
43.5547.8653.12
Details

Digi International Investments

(4.11 Million)

Digi International Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Digi International's current stock value. Our valuation model uses many indicators to compare Digi International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Digi International competition to find correlations between indicators driving Digi International's intrinsic value. More Info.
Digi International is one of the top stocks in net asset category among related companies. It is one of the top stocks in beta category among related companies . The ratio of Net Asset to Beta for Digi International is about  694,539,485 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Digi International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Digi International's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Digi International's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Digi International's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Digi International and how it compares across the competition.

About Digi International Valuation

The stock valuation mechanism determines the current worth of Digi International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Digi International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Digi International based exclusively on its fundamental and basic technical indicators. By analyzing Digi International's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Digi International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Digi International. We calculate exposure to Digi International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Digi International's related companies.
Last ReportedProjected for 2024
Gross Profit290 M304.5 M
Pretax Profit Margin 0.06  0.09 
Operating Profit Margin 0.13  0.10 
Net Profit Margin 0.06  0.06 
Gross Profit Margin 0.65  0.59 

Digi International Quarterly Retained Earnings

221.79 Million

8 Steps to conduct Digi International's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Digi International's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Digi International's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Digi International's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Digi International's revenue streams: Identify Digi International's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Digi International's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Digi International's growth potential: Evaluate Digi International's management, business model, and growth potential.
  • Determine Digi International's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Digi International's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Digi International Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Digi International does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding36.9 M
Quarterly Earnings Growth Y O Y-0.447
Forward Price Earnings17.4216

Digi International Current Valuation Indicators

Valuation refers to the process of determining the present value of Digi International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Digi we look at many different elements of the entity such as Digi's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Digi International's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Digi International's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Digi International, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Digi International's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Digi International's worth.
When determining whether Digi International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Digi International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digi International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digi International Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Digi International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
For more detail on how to invest in Digi Stock please use our How to Invest in Digi International guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Digi International's price analysis, check to measure Digi International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Digi International is operating at the current time. Most of Digi International's value examination focuses on studying past and present price action to predict the probability of Digi International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Digi International's price. Additionally, you may evaluate how the addition of Digi International to your portfolios can decrease your overall portfolio volatility.
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Is Digi International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Digi International. If investors know Digi will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Digi International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.45)
Earnings Share
0.43
Revenue Per Share
12.285
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0373
The market value of Digi International is measured differently than its book value, which is the value of Digi that is recorded on the company's balance sheet. Investors also form their own opinion of Digi International's value that differs from its market value or its book value, called intrinsic value, which is Digi International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Digi International's market value can be influenced by many factors that don't directly affect Digi International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Digi International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Digi International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digi International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.