DGII (Digi International) Intrinsic Value: Projected FCF: $40.25 (As of Sep. 11, 2026)

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Director of Data and Quant Analytics at GuruFocus
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DGII Digi International Inc DGII
78 GF Score
Price $68.73
GF Value $36.96
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Digi International Intrinsic Value: Projected FCF?

Digi International DGII -0.09% 78 Intrinsic Value: Projected FCF is $40.25 as of Sep. 11, 2026. GuruFocus rates DGII with a GF Score™ of 78/100 and a GF Value™ of $36.96 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,689 Hardware companies, Digi International ranks worse than 50.5% on this metric.

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2026-09-11), Digi International's Intrinsic Value: Projected FCF is $40.25. The stock price of Digi International is $68.73. Therefore, Digi International's Price-to-Intrinsic-Value-Projected-FCF of today is 1.7.

The historical rank and industry rank for Digi International's Intrinsic Value: Projected FCF or its related term are showing as below:

DGII' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.77   Med: 1.1   Max: 1.86
Current: 1.71

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Digi International was 1.86. The lowest was 0.77. And the median was 1.10.

DGII's Price-to-Projected-FCF is ranked worse than
50.5% of 1689 companies
in the Hardware industry
Industry Median: 1.68 vs DGII: 1.71

Digi International  (NAS:DGII) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Digi International's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=68.73/40.25269477036
=1.71

* 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 Intrinsic Value: Projected FCF Related Terms


Digi International Intrinsic Value: Projected FCF Historical Data

* Premium members only.

The historical data trend for Digi International's Intrinsic Value: Projected FCF 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 Intrinsic Value: Projected FCF Chart

Digi International Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.33 20.35 22.95 29.32 34.28

Digi International Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.47 34.28 35.87 37.97 40.25

DGII vs EXTR, VISN, HLIT: Intrinsic Value: Projected FCF Comparison

For the Communication Equipment subindustry, Digi International's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 Price-to-Projected-FCF vs Hardware Industry

For the Hardware industry and Technology sector, Digi International's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Digi International's Price-to-Projected-FCF falls into.


DGII
78GF Score
Digi International Inc DGII
Intrinsic Value: Projected FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Digi International Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Digi International's Free Cash Flow(6 year avg) = $74.40.

Digi International's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun26)*0.8)/Shares Outstanding (Diluted Average)
=(13.689378362526*74.39872+685.153*0.8)/38.919
=40.25

* 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.

What does a Intrinsic Value: Projected FCF of $40.25 mean?
Digi International (DGII) has a Intrinsic Value: Projected FCF of $40.25 as of Sep. 11, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Digi International and its competitors. According to the industry distribution chart, Digi International ranks #853 out of 1689 companies in the Hardware industry, placing it in the top 50.5%.
Is Digi International's Intrinsic Value: Projected FCF too high?
Digi International's current Intrinsic Value: Projected FCF is $40.25. The Hardware industry median Intrinsic Value: Projected FCF is 1.68. Digi International's value of $40.25 is 2295.8% above this industry median. Based on the distribution chart, Digi International ranks #853 out of 1689 companies in the Hardware industry, which is below 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 Intrinsic Value: Projected FCF compare to EXTR and VISN?
According to the Hardware industry distribution chart, Digi International ranks #853 out of 1689 companies for Intrinsic Value: Projected FCF. This places Digi International in the lower half of its industry. The industry median Intrinsic Value: Projected FCF is 1.68. Digi International's value of $40.25 is 2295.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Hardware company?
The median Intrinsic Value: Projected FCF among Hardware companies is 1.68, based on 1,689 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Intrinsic Value: Projected FCF of $40.25 is 2295.8% 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Digi International and its competitors. For the Hardware industry, the median Intrinsic Value: Projected FCF is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Intrinsic Value: Projected FCF is $40.25. 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 $36.96, compared to a current price of $68.73 — trading 86% above its estimated fair value. The current Intrinsic Value: Projected FCF is $40.25 and 2295.8% above the Hardware industry median of 1.68. Digi International's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Digi International (DGII), the current Intrinsic Value: Projected FCF is $40.25 as of Sep. 11, 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 $68.73 is trading 86% above its estimated GF Value™ of $36.96. GuruFocus considers Digi International to be Significantly Overvalued.

Key valuation signals for DGII:

  • Intrinsic Value: Projected FCF: $40.25
  • GF Value™: $36.96 vs. price of $68.73 (86% above fair value)
  • GF Score™: 78/100 with 2 warning signs
  • Industry Position: 2295.8% above the Hardware median (#853 of 1689)

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 Business Description

Other Exchanges DGI:Germany
Address 9350 Excelsior Boulevard, Suite 700, Hopkins, MN, USA, 55343
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

Get the complete analysis for DGII

Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$68.73
Price
$36.96
GF Value