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DCF Valuation
Base-case fair value
$107.80
Intrinsic $143.74 · 25% MOS
Current price: $67.38
Base-case summary
Our base-case DCF for Digi International Inc (DGII) projects 10 years of free cash flow growth at 17.9% for years 1–5 and 9.0% for years 6–10, anchored to 17.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $126M in trailing free cash flow, this produces an intrinsic value of $143.74 per share. A 25% safety margin gives a fair value of $107.80, suggesting the stock is currently 60% undervalued against the $67.38 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$126M
Cash & equivalents
$32M
Total debt
$154M
Shares outstanding
38M