Digi Power X's Pleasants Power Station Partnership: A Valuation Analysis

Digi Power X (TSXV:DGX) has signed a non-binding LOI with Omnis Pleasants LLC for a potential partnership around the 1.3 GW Pleasants Power Station in West Virginia. The stock has a 104.19% 1-year total shareholder return and a 218.12% 3-year return, but a recent 11.85% decline in the 90-day share price return. The current P/S ratio of 6.7x is higher than the estimated fair P/S of 6.5x and peer and industry averages, suggesting the market is already assigning a premium to the stock.