What does Digi International do?

Digi International makes the equipment and software businesses use to connect machines, sensors and network gear to the internet, with a focus on reliable, secure links where connectivity is critical. Its products include cellular routers, wireless modules built into other companies' devices, and console servers for remote access to data-center equipment. It also sells cloud software for managing connected devices and a sensor service that monitors things like food temperature.

What is Digi International's fair value?

On an owner-earnings DCF, Digi International's most-likely fair value is about $74, versus a recent price near $76. A margin-of-safety estimate, not a price target. Analysis, not advice.

Technology · Communication Equipment · DGII

What Digi International Does & How It Makes Money (DGII)

Updated October 2026 · reflects Digi International's latest reported financials

Industrial IoT connectivity hardware, software and managed-device services provider. It mainly earns revenue by selling IoT hardware such as routers, modules, gateways and console servers.

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How Digi International makes money

It mainly earns revenue by selling IoT hardware such as routers, modules, gateways and console servers. It also collects recurring subscription revenue from cloud device-management software, SmartSense monitoring, data plans and support, plus professional and design service fees.

What Digi International does

Digi International, founded in 1985 and based in Hopkins, Minnesota, supplies connectivity products for business and mission-critical IoT deployments. Its IoT Products & Services segment covers cellular routers and modules, console servers, Digi XBee RF modules and gateways, embedded systems under the Digi Connect and ConnectCore brands, serial servers and USB solutions, along with the Digi Remote Manager and Lighthouse cloud management platforms. The IoT Solutions segment includes SmartSense by Digi, which uses wireless sensors to monitor perishable goods and track staff task completion in food service, healthcare and logistics, and Ventus for managed network-as-a-service (MNaaS). The company adds recurring revenue through data plan subscriptions, enhanced support, professional services and Digi Wireless Design Services.

Products & services

Digi XBee wireless modules
Cellular routers and modules
Console servers
Digi Remote Manager and Lighthouse
SmartSense by Digi
Ventus MNaaS

What is Digi International worth?

On an owner-earnings DCF, Digi International's most-likely value is about $74 versus a recent price near $76 (2% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$34) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $76

Fair value (most likely)

$74

Range

$53–$132

No-growth floor

$34

Price

~$76

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Technology Industry Communication Equipment HQ United States Ticker DGII Official site

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