Diginex Limited (DGNX) DCF Valuation & Fundamental Primer
Diginex Limited (DGNX) currently trades at $4.55 with an enterprise value of $929.2M. Our proprietary institutional model rates Diginex Limited at 88/100 (Grade: A+ · Elite SaaS Compounder). The current market price prices in an implied 5-year revenue CAGR of 20.8% vs. historical growth of 22.4% (Fairly Priced to Fundamentals).
Institutional fundamental teardown of Diginex Limited (DGNX) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Diginex Limited (DGNX) 3-Scenario DCF Valuation Range
Stress-test DGNX's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $4.55).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $5.35 +18% | $5.68 +25% | $6.06 +33% | $6.52 +43% | $7.06 +55% |
| 9.3% | $4.82 +6% | $5.08 +12% | $5.37 +18% | $5.72 +26% | $6.12 +35% |
| 10.0% | $4.38 -4% | $4.59 +1% | $4.82 +6% | $5.09 +12% | $5.40 +19% |
| 10.8% | $4.01 -12% | $4.18 -8% | $4.37 -4% | $4.59 +1% | $4.83 +6% |
| 11.5% | $3.70 -19% | $3.84 -16% | $4.00 -12% | $4.17 -8% | $4.37 -4% |
Institutional Software Quality Scorecard (88/100 · Grade A+)
Exceptional unit economics, disciplined equity dilution, and fortress balance sheet.
Elite deferred revenue float; FCF exceeds operating income by >20%
Standard software SBC dilution; modest equity transfer to employees
Elite Tier-1 SaaS compounder with high gross margin and superior Rule of 40
Positive net cash cushion; self-funding operations with zero insolvency risk
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 166% of EBIT driven by upfront annual collections
- Top-quartile software unit economics: 83.0% gross margin and 52.3% Rule of 40 score
- Net cash positive: $49.7M balance sheet buffer
Key Operational & Dilution Risks
Reverse-DCF Solver: What Growth is Priced Into DGNX?
Market implies 20.8% annual revenue growth over next 5 years (29.6% dilution-adjusted), in line with company run-rate.
Headline Reverse-DCF ignores Stock-Based Compensation (12.3% of revenue) and annual share dilution (1.8%/yr). Accounting for both requires 29.6% 5-year revenue CAGR to justify $4.55/sh on a true per-share economic cash flow basis.
Diginex Limited (DGNX) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $102.6M | $102.6M | $125.6M | $153.8M | $188.2M | $230.4M | $282.0M |
| Gross Profit | $85.2M | $85.2M | $104.3M | $127.6M | $156.2M | $191.2M | $234.0M |
| Operating Income (EBIT) | $18.5M | $18.5M | $22.6M | $27.7M | $33.9M | $41.5M | $50.8M |
| Stock-Based Compensation (SBC) | $12.6M | $12.6M | $15.5M | $18.9M | $23.1M | $28.3M | $34.7M |
| Unlevered Free Cash Flow (FCF) | $30.7M | $30.7M | $37.6M | $46.0M | $56.3M | $68.9M | $84.3M |
| SBC-Adjusted True Cash Flow | $18.1M | $18.1M | $22.1M | $27.1M | $33.1M | $40.5M | $49.6M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -30.2 + 0.80 × (Rule of 40) · R² = 73%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Diginex Limited | DGNX | $923.7M | $102.6M | 83.0% | 29.9% | 52.3% | 12.3% | 8.5× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 8.5× | $874.0M | $923.7M | $4.55 | 0.0% |
| -20% Multiple Compression | 6.8× | $699.2M | $748.9M | $3.69 | -20.0% |
| -35% Multiple Compression | 5.5× | $568.1M | $617.8M | $3.04 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $513.2M | $562.8M | $2.77 | -41.3% |
Frequently Asked Questions: Diginex Limited (DGNX) Valuation
What is Diginex Limited (DGNX)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Diginex Limited (DGNX) has a Base Case implied value of $4.82 per share (with a Bear Case of $2.14 and a Bull Case of $8.66), compared to its current price of $4.55. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Diginex Limited (DGNX)'s Rule of 40 score and Free Cash Flow margin?
Diginex Limited achieves a Rule of 40 score of 52.3%, combining a 22.4% revenue growth run-rate with a 29.9% TTM free cash flow margin on $102.6M in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into DGNX stock according to Reverse-DCF analysis?
At $4.55 per share (Enterprise Value of $874.0M), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 20.8%, compared to Diginex Limited's historical CAGR of 22.4%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
How does Diginex Limited compare to Software & Cloud Services software peers?
Diginex Limited (DGNX) earns an institutional Software Quality Score of 88/100 (Grade A+ — Elite SaaS Compounder). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Diginex Limited (DGNX)'s valuation?
Diginex Limited recorded $12.6M in TTM stock-based compensation (12.3% of revenue). When treating SBC as a cash-equivalent compensation expense, Diginex Limited's SBC-adjusted free cash flow yield is 2.0%, scoring 16/25 on our Shareholder Dilution Friction pillar.