TGM's two-stage DCF values Digi International Inc. (DGII) between $22.24 and $42.23 depending on assumptions, with a base case of $30.35. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (9%) reflects its beta.
What would today's price require?
$73.81 is justified only if free cash flow grows about +31.9% a year (fading to 2.5% long-run) at a 9% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 7.8%/yr | 10.0% | $22.24 |
| Base case | 10.8%/yr | 9.0% | $30.35 |
| Optimistic | 13.8%/yr | 8.0% | $42.23 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $40.51 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$73.81
Market-Implied Growth
+31.9%/yr
vs +19.5% 5Y actual
Model Scenario Range
$22.24 – $42.23
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for DGII (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $58.3M · 0.04B shares · net debt $149.3M
Estimated Fair Value
$30.35
-58.9% vs $73.81
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.8%/yr FCF growth and 10-year horizon fixed. Green = above today's $73.81; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.0% | $38.32 | $41.93 | $46.33 | $51.83 | $58.89 |
| 8.0% | $31.53 | $33.98 | $36.88 | $40.35 | $44.59 |
| 9.0% | $26.56 | $28.32 | $30.35 | $32.72 | $35.51 |
| 10.0% | $22.77 | $24.09 | $25.58 | $27.27 | $29.23 |
| 11.0% | $19.79 | $20.80 | $21.93 | $23.20 | $24.63 |
