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Digi InternationalDGII +1.75%78 Earnings Yield (Joel Greenblatt) % is 3.22% as of Mar. 2026, which is 5% above its 10-year median of 3.07. GuruFocus rates DGII with a GF Score™ of 78/100 and a GF Value™ of $35.37 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,488 Hardware companies, Digi International ranks better than 50.52% on this metric.
Digi International's Enterprise Value for the quarter that ended in Mar. 2026 was $1,939.0 Mil.
Digi International's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $62.5 Mil. Digi International's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 3.22%.
The historical rank and industry rank for Digi International's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
DGII'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.85 Med: 3.07 Max: 14.12
Current: 2.36
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Digi International was 14.12%. The lowest was 0.85%. And the median was 3.07%.
DGII's Earnings Yield (Joel Greenblatt) % is ranked better than 50.52% of 2488
companies
in the Hardware industry
Industry Median: 2.335
vs DGII: 2.36
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Digi International's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 23.13%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Digi International (NAS:DGII) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Digi International Earnings Yield (Joel Greenblatt) % Related Terms
Digi International Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Digi International's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Digi International Earnings Yield (Joel Greenblatt) % Chart
For the Communication Equipment subindustry, Digi International's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digi International Earnings Yield (Joel Greenblatt) % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Digi International's Earnings Yield (Joel Greenblatt) % falls into.
Digi International Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Digi Internationals Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Sep. 2025 is calculated as
Digi International's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $62.5 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 3.22% mean?
Digi International (DGII) has a Earnings Yield (Joel Greenblatt) % of 3.22% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Digi International and its competitors. This is near median its historical median of 3.07. Over the past decade, Digi International's Earnings Yield (Joel Greenblatt) % has ranged from 0.85 to 14.12. According to the industry distribution chart, Digi International ranks #1231 out of 2488 companies in the Hardware industry, placing it in the top 49.5%.
Is Digi International's Earnings Yield (Joel Greenblatt) % too high?
Digi International's current Earnings Yield (Joel Greenblatt) % of 3.22% is near median its 10-year median of 3.07. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 14.12. The Hardware industry median Earnings Yield (Joel Greenblatt) % is 2.34. Digi International's value of 3.22% is 37.9% above this industry median. Based on the distribution chart, Digi International ranks #1231 out of 2488 companies in the Hardware industry, which is above the industry midpoint. Overall, Digi International has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digi International's Earnings Yield (Joel Greenblatt) % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #1231 out of 2488 companies for Earnings Yield (Joel Greenblatt) %. This puts Digi International in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.34. Digi International's value of 3.22% is 37.9% above this benchmark. Historically, Digi International's own Earnings Yield (Joel Greenblatt) % has ranged from 0.85 to 14.12 over the past decade. While the company's 10-year median is 3.07 vs. the industry median of 2.34, Digi International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Hardware company?
The median Earnings Yield (Joel Greenblatt) % among Hardware companies is 2.34, based on 2,488 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Earnings Yield (Joel Greenblatt) % of 3.22% is 37.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Digi International and its competitors. For the Hardware industry, the median Earnings Yield (Joel Greenblatt) % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Earnings Yield (Joel Greenblatt) % is 3.22%, which is near median its own 10-year median of 3.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digi International stock overvalued right now?
Based on GuruFocus' analysis, Digi International (DGII) is currently considered Significantly Overvalued. The stock's GF Value™ is $35.37, compared to a current price of $66.96 — trading 89.3% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 3.22%, which is near median its 10-year median of 3.07 and 37.9% above the Hardware industry median of 2.34. Digi International's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Digi International (DGII), the current Earnings Yield (Joel Greenblatt) % is 3.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digi International (DGII) Overvalued in 2026?
Based on GuruFocus' analysis, Digi International stock appears to be overvalued.
The current stock price of $66.96 is trading 89.3% above its estimated GF Value™ of $35.37.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
Earnings Yield (Joel Greenblatt) %: 3.22% (near median its 10-year median of 3.07)
GF Value™: $35.37 vs. price of $66.96 (89.3% above fair value)
Industry Position: 37.9% above the Hardware median (#1231 of 2488)
No single metric tells the full story. See the DGII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digi International Inc is a Minnesota corporation that provides business and mission-critical Internet of Things (IoT) connectivity products and services. It operates through two segments: IoT Products & Services, which supports OEMs, enterprise, and government customers in deploying secure IoT connectivity solutions, and IoT Solutions, consisting of SmartSense and its Managed Network-as-a-Service (MNaaS) business offering wireless temperature and condition-based monitoring, employee task management, label printing, and other services. The company generates the majority of its revenue from the IoT Products & Services segment and mainly from the United States, with a presence in Europe, the Middle East and Africa, and the Rest of the world.
78GF Score
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Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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