Is Digi International, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Digi International, Inc. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios reveal a P/E ratio of 35, a Price to Book Value of 2.45, and an EV to EBITDA of 27.88, all suggesting that the stock is trading at a premium compared to its earnings and book value. In comparison to peers, InterDigital, Inc. has a higher P/E of 43.22, while Harmonic, Inc. presents a much lower EV to EBITDA of 9.46, highlighting the relative overvaluation of Digi International.
Despite the overvaluation, Digi International has shown strong recent performance, with a 1-year stock return of 43.11% compared to the S&P 500's 17.14%, indicating that the market has rewarded the stock despite its high valuation metrics.