Distribution Solutions Group, Inc. (DSGR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+113.9%

$74.88

vs $35.00 price

Levered DCF

$64.56

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.41

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	152.17×	-215×	-157.8×	83.77×	-109.52×	30.31×	65.13×	23.58×
P/B	1.96×	2.52×	2.14×	1.12×	3.38×	3.75×	2.16×	1.49×
P/S	0.64×	0.89×	0.9×	0.55×	1.08×	1.31×	0.63×	0.42×
EV / EBITDA	13.03×	18.42×	13.53×	13.1×	25.9×	15.68×	15.05×	10.29×
Gross margin	33.4%	34.0%	35.4%	33.9%	25.0%	53.1%	53.2%	54.2%
Operating margin	4.0%	3.1%	2.7%	3.6%	2.2%	5.8%	2.4%	2.6%
Net margin	0.4%	-0.4%	-0.6%	0.6%	-1.0%	4.3%	1.9%	1.8%
Current ratio	2.56×	2.67×	2.72×	2.82×	1.1×	1.46×	1.87×	1.61×
Debt / equity	1.26×	1.3×	0.98×	0.84×	1.5×	0.08×	0.14×	0.16×
Interest coverage	1.41×	1.01×	1.01×	1.72×	0.68×	31.42×	15.03×	9.13×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	1.3%	-1.1%	-1.4%	1.3%	-3.0%	12.3%	6.7%	6.3%
Return on invested capital	2.2%	3.7%	3.2%	2.2%	2.7%	9.2%	4.5%	5.8%
Return on assets	0.5%	-0.4%	-0.6%	0.6%	-1.0%	5.9%	3.5%	3.2%
Free cash flow yield	3.4%	2.1%	5.5%	-4.9%	-0.6%	6.7%	3.1%	12.1%
Earnings yield	0.7%	-0.5%	-0.6%	1.2%	-0.9%	3.3%	3.1%	4.2%
Enterprise value	$2B	$2.4B	$2B	$1.1B	$794.7M	$441.2M	$243.3M	$151.6M
Net debt / EBITDA	4.87×	5.93×	3.86×	5.43×	7.62×	-0.64×	0.63×	0.28×
Cash conversion cycle (days)	106	119	128	141	136	141	132	129