A Look At The Fair Value Of Taliworks Corporation Berhad (KLSE:TALIWRK)

Simply Wall St

Sat, February 14, 2026 at 9:51 AM GMT+9 6 min read

In this article:

8524.KL

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TALIWRK

Key Insights

The projected fair value for Taliworks Corporation Berhad is RM0.56 based on 2 Stage Free Cash Flow to Equity

Current share price of RM0.46 suggests Taliworks Corporation Berhad is potentially trading close to its fair value

Taliworks Corporation Berhad's peers are currently trading at a premium of 488% on average

In this article we are going to estimate the intrinsic value of Taliworks Corporation Berhad (KLSE:TALIWRK) by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don’t get put off by the jargon, the math behind it is actually quite straightforward.

We generally believe that a company’s value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.

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The Method

We’re using the 2-stage growth model, which simply means we take in account two stages of company’s growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company’s last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today’s value:

10-year free cash flow (FCF) forecast

(“Est” = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = RM433m

Story Continues  

The second stage is also known as Terminal Value, this is the business’s cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country’s GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.8%) to estimate future growth. In the same way as with the 10-year ‘growth’ period, we discount future cash flows to today’s value, using a cost of equity of 8.4%.

Terminal Value (TV)$1 FCF2035 × (1 + g) ÷ (r – g) = RM70m× (1 + 3.8%) ÷ (8.4%– 3.8%) = RM1.6b

Present Value of Terminal Value (PVTV)$1 TV / (1 + r)10$1 RM1.6b÷ ( 1 + 8.4%)10$1 RM704m

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM1.1b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of RM0.5, the company appears about fair value at a 18% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.

KLSE:TALIWRK Discounted Cash Flow February 14th 2026

Important Assumptions

The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don’t agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company’s future capital requirements, so it does not give a full picture of a company’s potential performance. Given that we are looking at Taliworks Corporation Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we’ve used 8.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock’s volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Check out our latest analysis for Taliworks Corporation Berhad

SWOT Analysis for Taliworks Corporation Berhad

Strength

Earnings growth over the past year exceeded the industry.

Debt is not viewed as a risk.

Dividends are covered by earnings and cash flows.

Weakness

Dividend is low compared to the top 25% of dividend payers in the Water Utilities market.

Opportunity

Annual revenue is forecast to grow faster than the Malaysian market.

Good value based on P/E ratio and estimated fair value.

Threat

No apparent threats visible for TALIWRK.

Next Steps:

Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won’t be the sole piece of analysis you scrutinize for a company. It’s not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to “what assumptions need to be true for this stock to be under/overvalued?” For example, changes in the company’s cost of equity or the risk free rate can significantly impact the valuation. For Taliworks Corporation Berhad, there are three relevant aspects you should further examine:

**Risks**: For example, we've discovered **1 warning sign for Taliworks Corporation Berhad** that you should be aware of before investing here.

**Future Earnings**: How does TALIWRK's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

**Other High Quality Alternatives**: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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