Is Digi International (DGII) A Bargain After Its New 5G Router Launch?

Digi International (DGII) just rolled out the Digi EX60, an indoor enterprise 5G router aimed at retailers, healthcare providers and multi site branches that want 5G as primary or backup connectivity.

Against that product backdrop, Digi International’s share price has slipped 2.6% over the last day and 7.6% over the past week. However, the 90-day share price return of 9.0% and 1-year total shareholder return of 84.4% suggest longer term momentum has been stronger than the latest pullback implies.

Scan beyond Digi International and spot other connectivity and infrastructure plays that fit this 5G transition story with our carefully filtered 55 AI infrastructure stocks

Bulls point to Digi International’s 84.4% 1-year return and fresh 5G product launch, while bears focus on the recent pullback. Which side does the current valuation actually support next?

Most Popular Narrative: 18% Undervalued

Digi International’s most followed valuation narrative pegs fair value at $85.40, which sits above the recent $69.90 close and frames the recent pullback as a gap between price and expectations.

The accelerating transition of customers to Digi International's subscription-based and recurring revenue solutions, with ARR growing faster than revenue and reaching $191 million in fiscal Q3 2026, continues to shift the mix toward higher margin software and services. This can support more stable revenue and stronger net margins over time.

See why 3 investors see Digi International as 18% undervalued.

Result: Fair Value of $85.40 (UNDERVALUED)

Still, the Digi International story can crack if insider selling continues while growth undershoots analyst assumptions, or if acquisition-heavy expansion leaves the balance sheet stretched.

Find out about the key risks to this Digi International narrative.

Another View On Digi International’s Valuation

On a simple earnings multiple, Digi International looks anything but cheap. The stock trades on a P/E of 54.4x, against an industry average of 35.9x and a peer group at 37.6x, while the fair ratio sits lower again at 31.8x. That gap suggests investors are paying a premium that could amplify any disappointment in future results.

For a closer look at how that multiple compares with the underlying cash flows and assumptions behind it, See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

Sentiment on Digi International is split right now, and the clock is ticking for you to stress test the numbers yourself and decide where you stand. To see what optimistic investors are focusing on, start with the 4 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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