Digi International Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $136.0M TTM FCF base; 16% annual FCF growth years 1-3; 10% years 4-6; 6% years 7-10; 9.5% discount rate; 3% terminal growth; -$90.4M net debt; 37.95M shares outstanding.

Reasoning: Digi International is shifting toward higher-margin IoT SaaS/ARR revenue with accelerating growth (about 24% consensus 2026 revenue growth); a multi-stage DCF captures the shift from hardware-centric to recurring-revenue economics, and a 9.5% discount rate reflects its small-cap size and reliance on the still-maturing IoT connectivity market.