Is Digi International, Inc. overvalued or undervalued?

As of 8 May 2025, Digi International, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 35, a Price to Book Value of 2.45, and an EV to EBITDA ratio of 17.30. In comparison, its peers such as Harmonic, Inc. have a P/E of 12.68 and an EV to EBITDA of 8.05, highlighting that Digi is trading at a premium relative to some competitors.
Despite the fair valuation, Digi has shown strong performance with a year-to-date return of 12.47%, significantly outperforming the S&P 500's return of 2.44% during the same period. The PEG ratio of 0.87 suggests that the stock may still be attractive for growth investors, although its current valuation metrics indicate it is not undervalued. Overall, Digi International, Inc. appears to be fairly valued in the current market landscape.