Is Digi International, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Digi International, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 35, which is higher than the peer average of approximately 34.86, and an EV to EBITDA ratio of 17.30, which also exceeds the peer average of 16.75. Additionally, the PEG ratio of 0.87 suggests that the stock may not be as growth-oriented as its price implies.
In comparison to its peers, InterDigital, Inc. has a higher P/E of 43.22 but a more favorable PEG ratio of 0.68, while Harmonic, Inc. is valued attractively with an EV to EBITDA of 9.46. Despite the recent performance, where Digi International returned 25.41% year-to-date compared to the S&P 500's 13.30%, the elevated valuation metrics suggest that the stock may not provide sufficient upside relative to its current price.