DCF Tool

DGII

Digi International, Inc. – Electronic Computer Manufacturing
Digi International is a leading global provider of IoT connectivity products, services and solutions. Digi helps its customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability. Founded in 1985, Digi has helped its customers connect over 100 million things and growing.
Analysis Results
Intrinsic Value $156.28
Latest Price $32.59
Relative Value 79% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 47.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 47.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 114 105
2024 169 142
2025 249 191
2026 367 259
2027 542 349
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7690 million. This corresponds to a present value of 4540 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1050 million. Adding in the terminal value gives a total present value of 5590 million.

There are presently 35.7 million outstanding shares, so the intrinsic value per share is 156.28.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 166,208,000
Current Cash 34,900,000
Current Liabilities 96,507,000
Current Debt 15,523,000
Non-Cash Working Capital (NCWC) 50,324,000
Change in NCWC 15,039,000
EBIT 32,295,000
Tax Provision -755,000
Depreciation and Amortization 37,572,000
Capital Expenditure -1,974,000
Unlevered Free Cash Flow 82,932,000
Current Assets 246,658,000
Current Cash 152,432,000
Current Liabilities 58,941,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,285,000
Change in NCWC -21,386,000
EBIT 11,523,000
Tax Provision -1,367,000
Depreciation and Amortization 20,877,000
Capital Expenditure -2,257,000
Unlevered Free Cash Flow 8,757,000
Current Assets 170,058,000
Current Cash 54,129,000
Current Liabilities 61,230,000
Current Debt 1,972,000
Non-Cash Working Capital (NCWC) 56,671,000
Change in NCWC 1,374,000
EBIT 11,434,000
Tax Provision -948,000
Depreciation and Amortization 19,299,000
Capital Expenditure -899,000
Unlevered Free Cash Flow 31,208,000
Current Assets 192,547,000
Current Cash 92,792,000
Current Liabilities 44,458,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,297,000
Change in NCWC -10,022,000
EBIT 9,985,000
Tax Provision 1,187,000
Depreciation and Amortization 13,396,000
Capital Expenditure -9,335,000
Unlevered Free Cash Flow 2,960,545
Current Assets 163,044,000
Current Cash 62,750,000
Current Liabilities 34,975,000
Current Debt 0
Non-Cash Working Capital (NCWC) 65,319,000
Change in NCWC 19,176,000
EBIT 2,623,000
Tax Provision 1,487,000
Depreciation and Amortization 12,270,000
Capital Expenditure -1,842,000
Unlevered Free Cash Flow 30,829,006
Current Assets 174,360,000
Current Cash 110,237,000
Current Liabilities 17,980,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,143,000
Change in NCWC 8,415,000
EBIT 11,322,000
Tax Provision 125,000
Depreciation and Amortization 5,497,000
Capital Expenditure -1,773,000
Unlevered Free Cash Flow 23,311,885
Current Assets 195,645,000
Current Cash 134,109,000
Current Liabilities 23,808,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,728,000
Change in NCWC -7,059,000
EBIT 17,852,000
Tax Provision 3,212,000
Depreciation and Amortization 4,614,000
Capital Expenditure -2,729,000
Unlevered Free Cash Flow 9,242,372
Current Assets 160,185,000
Current Cash 92,209,000
Current Liabilities 23,189,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,787,000
Change in NCWC -752,000
EBIT 6,926,000
Tax Provision 2,057,000
Depreciation and Amortization 5,859,000
Capital Expenditure -4,500,000
Unlevered Free Cash Flow 5,885,020
Current Assets 147,681,000
Current Cash 80,388,000
Current Liabilities 21,754,000
Current Debt 0
Non-Cash Working Capital (NCWC) 45,539,000
Change in NCWC 5,851,000
EBIT 206,000
Tax Provision -954,000
Depreciation and Amortization 7,146,000
Capital Expenditure -3,421,000
Unlevered Free Cash Flow 9,782,000
Current Assets 149,304,000
Current Cash 88,326,000
Current Liabilities 21,290,000
Current Debt 0
Non-Cash Working Capital (NCWC) 39,688,000
Change in NCWC 2,929,000
EBIT 7,860,000
Tax Provision 2,433,000
Depreciation and Amortization 7,877,000
Capital Expenditure -2,886,000
Unlevered Free Cash Flow 13,458,638
Current Assets 173,569,000
Current Cash 118,618,000
Current Liabilities 18,192,000
Current Debt 0
Non-Cash Working Capital (NCWC) 36,759,000
Change in NCWC 219,000
EBIT 12,140,000
Tax Provision 3,282,000
Depreciation and Amortization 7,815,000
Capital Expenditure -3,953,000
Unlevered Free Cash Flow 12,564,628

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