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REDtone Digital Berhad, an investment holding company, (0032) Fair Value & Analysis

Communication Services · MY · Market cap 236M MYR

RD REDtone Digital Berhad, an investment holding company, 0032 · KLSE
Price0.3100 MYR
Fair Value0.7200 MYR
Upside+132.3%
Quality65/100
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Mixed Growth
Thin margins · 1.5% net margin
Low debt · generates free cash flow
6.56% dividend yield
Ranks above peers (8/12)
Narrow moat 37/100
Evidence: High Range 0.5500 MYR – 0.8900 MYR Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 24 days ago

Share price +3.3% over the past month.

A solid business, screening 132% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (0.5500 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

1.10 MYR 0.2900 MYR Fair Value 0.7200 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range 0.2900 MYR – 1.10 MYR · fair‑value band 0.5500 MYR – 0.8900 MYR · the 0.3100 MYR price screens below the 0.7200 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

REDtone Digital Berhad, an investment holding company, (0032) currently trades at 0.3100 MYR, while our model-based Fair Value estimate is 0.7200 MYR, implying the stock looks roughly 132.3% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, REDtone Digital Berhad, an investment holding company, generated revenue of 230M MYR at a net margin of 1.5%. Revenue declined 21.4% year over year. It earns a return on equity of 1.2%. The balance sheet holds a net cash position of 41.4M MYR. Fundamentals as of Jul 17, 2026

Our scenario range runs from 0.5500 MYR (bear case) to 0.8900 MYR (bull case); at 0.3100 MYR, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 45% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 132%, 0032 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 0.6200 MYR 0.8100 MYR 1.03 MYR 80
Residual Income 0.2700 MYR 0.2900 MYR 0.3200 MYR 76
Rev-Margin DCF 0.5200 MYR 0.7300 MYR 0.9900 MYR 74
All 26 models by family
DCF Models
FCF DCF 0.6200 MYR 0.8400 MYR 1.12 MYR 38
Owner Earnings 0.4400 MYR 0.5800 MYR 0.7700 MYR 31
5Y Revenue Exit 0.5200 MYR 0.7300 MYR 0.9900 MYR 39
5Y EBITDA Exit 0.6700 MYR 1.02 MYR 1.42 MYR 41
5Y P/E Exit 0.6000 MYR 0.8800 MYR 1.17 MYR 38
10Y Revenue Exit 0.5500 MYR 0.7300 MYR 0.9700 MYR 36
10Y EBITDA Exit 0.6400 MYR 0.9100 MYR 1.25 MYR 37
10Y P/E Exit 0.6000 MYR 0.8200 MYR 1.09 MYR 35
Earnings-Based
Graham-Dodd 0.2300 MYR 0.7600 MYR 1.01 MYR 54
Lynch FV 0.1700 MYR 0.2400 MYR 0.3200 MYR 50
PEG = 1.0 0.1700 MYR 0.2400 MYR 0.3200 MYR 46
EPV 0.2900 MYR 0.3200 MYR 0.3400 MYR 59
Dividend Discount
Gordon GGM 0.2100 MYR 0.3500 MYR 0.4500 MYR 70
DDM Multi-Stage 0.2100 MYR 0.3200 MYR 0.3800 MYR 61
Multiples
P/E Multiple 0.5600 MYR 0.7500 MYR 0.9400 MYR 63
P/S Multiple 0.4300 MYR 0.5800 MYR 0.7200 MYR 58
P/B Multiple 0.4300 MYR 0.5800 MYR 0.7200 MYR 55
EV/EBIT 0.5900 MYR 0.7500 MYR 0.9200 MYR 53
EV/EBITDA 0.8000 MYR 1.04 MYR 1.27 MYR 54
EV/Revenue 0.4600 MYR 0.6300 MYR 0.7900 MYR 43
Asset-Based
NCAV (Graham) 0.1700 MYR 0.2300 MYR 0.3400 MYR 50
Growth DCF
Growth DCF 0.6200 MYR 0.8100 MYR 1.03 MYR 80
Rev-Margin DCF 0.5200 MYR 0.7300 MYR 0.9900 MYR 74
Economic Profit
Residual Income 0.2700 MYR 0.2900 MYR 0.3200 MYR 76
ROIC Compounder 0.2900 MYR 0.3200 MYR 0.3400 MYR 72
Growth Earnings
Growth-Adj P/E 0.4700 MYR 0.6700 MYR 0.8700 MYR 68

Widest divergence: DCF Models (0.8200 MYR) versus Asset-Based (0.2300 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 230M MYR
Revenue growth (YoY) -21.4%
Net margin 1.5%
Return on equity 1.2%
Free cash flow 49.2M MYR FY2024
Operating margin 9.0%
More key figures
Dividend yield 6.6%
EPS growth (YoY) -81.1%
Net cash 41.4M MYR FY2024

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 67 · Market factors (momentum, volatility) 35

Profitability 58
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

REDtone Digital Berhad, an investment holding company, provides integrated telecommunications and digital infrastructure services in Malaysia. It operates through Telecommunication services; Managed Telecommunications Network Services; and Cloud and Internet of Things segments.

Full company description

REDtone Digital Berhad, an investment holding company, provides integrated telecommunications and digital infrastructure services in Malaysia. It operates through Telecommunication services; Managed Telecommunications Network Services; and Cloud and Internet of Things segments. The company offers telecommunication services, such as data, managed network services, Cloud PBX, SIP Trunking, and managed cybersecurity offerings to government, enterprises, and small and medium enterprises. It also provides managed telecommunications network services, including telecom engineering projects, such as Wi-Fi hotspots, mobile base stations, and fiber optic infrastructure; fixed network solutions, equipment installation and integration, and radio frequency design and network optimization solutions; and cloud services and applications, data center and disaster recovery, and Internet of Things for smart farming, smart cities, and healthcare solutions. In addition, the company engages in the provision of telecommunication related products and services, and information technology services. Further, the company offers system integration and software solutions and trades in computer hardware. Additionally, it provides information technology solutions, including cloud related products, and services; fiber optic transmission network and project management services related to telecommunications; fixed and mobile services and telecommunications related services; and business solutions in information technology, as well as builds interconnection of embedded computing device within existing internet infrastructures. REDtone Digital Berhad has a strategic partnership with GPTBots.AI to enhance enterprise AI services. The company was formerly known as REDtone International Berhad. The company was incorporated in 1996 and is headquartered in Puchong, Malaysia. REDtone Digital Berhad is a subsidiary of Berjaya Corporation Berhad.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

REDtone Digital Berhad, an investment holding company, reported revenue of 325M MYR in FY2024 versus 175M MYR in FY2020, a compound +16.8%/yr. Reported net income was 26.3M MYR in FY2024, compounding +0.0%/yr from FY2020.

Growth Quality 74/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
325M MYR
Latest YoY
−5.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+27.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.8%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Revenue +16.8%/yr
FY20 175M MYR
FY21 158M MYR
FY22 215M MYR
FY23 342M MYR
FY24 325M MYR
Net income +0.0%/yr
FY20 26.3M MYR
FY21 39.5M MYR
FY22 57.5M MYR
FY23 59.8M MYR
FY24 26.3M MYR
Character of growth · EPS growth decomposed (2013-2024) +9.4 % p.a.
Revenue per share +5.5 pp

of which total revenue +7.6 pp · buybacks/dilution −2.1 pp

EBIT margin +2.2 pp
Tax rate −1.2 pp
Residual (interest, one-offs) +2.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "REDtone Digital Berhad, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/0032

Peer Group

Telecom Services · 250 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside +132% · Top 25%
Return on equity (TTM) 1% · Below median
Return on assets 6% · Top 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) 9% · Below median
Revenue growth -21% · Bottom 25%
Dividend yield (TTM) 6.6% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/B 0.22× · Cheaper than 75% of peers
P/S (TTM) 0.25× · Cheaper than 75% of peers
P/FCF 1.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 29
FUTURE 0 · sector 15
PAST 5 · sector 28
HEALTH 100 · sector 88
DIVIDEND 100 · sector 73

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is REDtone Digital Berhad, an investment holding company, (0032) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of 0.7200 MYR versus a price of 0.3100 MYR, about +132% (undervalued).
What is the fair value of 0032?
Our model-based fair value for REDtone Digital Berhad, an investment holding company, is 0.7200 MYR (as of Jul 17, 2026), built from audited fundamentals. The current price is 0.3100 MYR.
What is the quality score of 0032?
REDtone Digital Berhad, an investment holding company, has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of REDtone Digital Berhad, an investment holding company, (0032)?
REDtone Digital Berhad, an investment holding company, reported trailing-twelve-month revenue of about 230M MYR (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 0032?
The net profit margin of REDtone Digital Berhad, an investment holding company, is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.
Does REDtone Digital Berhad, an investment holding company, pay a dividend?
REDtone Digital Berhad, an investment holding company, currently shows a dividend yield of about 6.56% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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