Telekom Malaysia Bhd (4863) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Telekom Malaysia Bhd MYR 7.42, price MYR 7.90, upside -6.1%, quality 61 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Telekom Malaysia Berhad engages in the establishment, maintenance, and provision of telecommunications and related services in Malaysia and internationally. The company offers integrated broadband, mobile and data services, and digital content services.
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Telekom Malaysia Berhad engages in the establishment, maintenance, and provision of telecommunications and related services in Malaysia and internationally. The company offers integrated broadband, mobile and data services, and digital content services. It also provides network connectivity and bandwidth; project management; provision of fiber optic transmission network; managed network, and value-added telecommunication and information technology; and information and communications technology (ICT) and cloud consumption services. In addition, the company engages in the provision of research and development activities in the areas of communications, hi-tech applications, and products and services in related business; digital video and film production and post production; and property development activities. Further, it provides network infrastructure facilities and services; last mile services for fixed and wireless consisting of broadband, messaging, and voice; provision of digital solution; managing and administering a multimedia university; and network system integration and centric; and fleet management services, as well as training and related services. Additionally, the company engages in international telecommunications; and provision of ICT system security and smart building services, including smart tenant services for building owners, operators, residents, and visitors; and provision of infrastructure for hosting, data processing services and related activities. The company was founded in 1946 and is headquartered in Kuala Lumpur, Malaysia.
Stock analysis
Telekom Malaysia Bhd (4863) currently trades at 7.90 MYR, while our model-based Fair Value estimate is 7.42 MYR, implying the stock looks roughly 6.5% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 7.99 MYR per share, and 9 of the 24 models we run sit above the 7.90 MYR price.
Bear case: the Asset-Based group reads lowest at 1.85 MYR, and 15 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: 5.70 MYR (bear) to 10.26 MYR (bull), the price of 7.90 MYR sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Communication Services sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Telekom Malaysia Bhd reported revenue of 11.9B MYR in FY2025 versus 11.5B MYR in FY2021, a compound +0.7%/yr. Reported net income was 1.7B MYR in FY2025, compounding +17.6%/yr from FY2021.
Key figures
Market cap 30.3B MYR (≈ $7.4B) · P/E ratio 18.8 · P/S ratio 2.71 · EPS (TTM) 0.4200 MYR · Dividend yield 3.4% · Net margin 14.4% · Return on equity 16.2% · Return on assets (EBIT) 9.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 15% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 47% fair-value upside, at −6%, 4863 screens richer than that median.
Fair Value models
Bear 5.70 MYRFair Value 7.42 MYRBull 10.26 MYR
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (0.1097 MYR per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+1.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−0.7%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.8%
Start year 2020 (pandemic). Over 10 years: +0.1% a year
Revenue growth 20 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−0.8%
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What shareholders gained per year (last 5 years), in MYR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in MYR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+17.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.7%
Dividend (yield on the price)3.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.14% vs 8%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.15% → 19%
Start year 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes more growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+5.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (Malaysia: IMF forecast 2.0% a year to 2030, 1.8% from 2016 to 2025) that is about +3.0% a year for the price and +0.6% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Telecom Services · 252 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score61 · Top 25%
Fair Value upside−6% · Below median
Profitability
Return on equity (TTM)16% · Above median
Return on assets6% · Top 25%
Net margin (TTM)14% · Top 25%
Operating margin (TTM)15% · Above median
Growth and dividend
Revenue growth3% · Below median
Dividend yield (TTM)3.4% · Below median
Balance sheet
Debt / equity0.15× · Below median
Valuation Multiplesvs Telecom Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Telekom Malaysia Bhd Fair Value". https://www.fairvalue-calculator.com/stock/4863
Frequently asked questions
Is Telekom Malaysia Bhd (4863) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 7.42 MYR versus a price of 7.90 MYR, about −6% upside (fairly valued).
What is the fair value of 4863?
Our model-based fair value for Telekom Malaysia Bhd is 7.42 MYR (as of Sep 24, 2026), built from audited fundamentals. The current price: 7.90 MYR.
What is the quality score of 4863?
Telekom Malaysia Bhd has a Quality Score of 61/100. 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 price target for Telekom Malaysia Bhd (4863)?
Our model-based price target is the fair value of 7.42 MYR (as of Sep 24, 2026) from 24 valuation models. Cautious scenario 5.70 MYR, optimistic scenario 10.26 MYR. It is a calculation from audited fundamentals, not an analyst target.
What is the Telekom Malaysia Bhd stock forecast for 2026?
Our models put fair value at 7.42 MYR, about −6% upside versus a price of 7.90 MYR (fairly valued). Cautious scenario 5.70 MYR, optimistic scenario 10.26 MYR. The calculation is refreshed regularly with new filings.
What is the revenue of Telekom Malaysia Bhd (4863)?
Telekom Malaysia Bhd reported trailing-twelve-month revenue of about 12.0B MYR (latest available figure, as of Sep 24, 2026).
Does Telekom Malaysia Bhd pay a dividend?
Telekom Malaysia Bhd currently shows a dividend yield of about 3.42% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Telekom Malaysia Bhd (4863)?
For today's price to be fair in a discounted-cash-flow model, Telekom Malaysia Bhd would have to grow free cash flow by +5.1 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.8 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 4863 use?
Our models discount Telekom Malaysia Bhd at 9.7 %: a base by market capitalisation (mid), damped by beta 0.22, country premium for Malaysia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Telekom Malaysia Bhd that is +5.1 % per year a year over ten years, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has Telekom Malaysia Bhd (4863) delivered so far?
Over the past 5 years revenue at Telekom Malaysia Bhd grew +1.8 % a year. The price currently implies +5.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Telekom Malaysia Bhd (4863) growing?
The median revenue growth in the sector is +1.6 % a year. That is the yardstick for the growth priced into Telekom Malaysia Bhd (+5.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Telekom Malaysia Bhd (4863)?
The free-cash-flow yield on the price is 6.21 %: that much free cash flow Telekom Malaysia Bhd produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Telekom Malaysia Bhd (4863)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Telekom Malaysia Bhd it is 7.42 MYR per share (as of Sep 24, 2026), against a price of 7.90 MYR. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Telekom Malaysia Bhd stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 4863 trades above its calculated fair value: price 7.90 MYR, fair value 7.42 MYR, a gap of about −6% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 4863?
No. The price is what the market pays today (7.90 MYR); the fair value is what the company's own numbers justify (7.42 MYR). For Telekom Malaysia Bhd the two are 0.4800 MYR per share apart. That gap is exactly why we show both numbers side by side.
How much is Telekom Malaysia Bhd worth?
The market values Telekom Malaysia Bhd at about 30.3B MYR (market capitalisation, as of Sep 24, 2026). Per share that is 7.90 MYR; our models calculate a fair value of 7.42 MYR per share.
What do the bullish and bearish scenarios say about 4863?
Our models span a range for Telekom Malaysia Bhd: cautious scenario 5.70 MYR, base 7.42 MYR, optimistic 10.26 MYR per share (as of Sep 24, 2026, price 7.90 MYR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 4863?
Telekom Malaysia Bhd trades at a price-to-earnings ratio of 18.8 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 7.42 MYR is built from several models across several years. Other multiples: PEG 1.1, P/B 0.7, P/S 0.6, EV/EBITDA 1.8.
What is the PEG ratio of 4863?
The PEG ratio of Telekom Malaysia Bhd is 1.14 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Telekom Malaysia Bhd (4863)?
Balance-sheet figures for Telekom Malaysia Bhd (as of Sep 24, 2026): return on equity 16.2%, debt of 0.15 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is 4863 from its 52-week high?
Telekom Malaysia Bhd trades at 7.90 MYR, about 3% below its 52-week high of 8.18 MYR and 15% above the low of 6.89 MYR (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of 7.42 MYR is for.
Which stocks are comparable to Telekom Malaysia Bhd?
From the same area (Communication Services) we also value China Mobile Limited, T-Mobile US, Inc, Verizon Communications Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Telekom Malaysia Bhd stock attractive at the current price?
The data as of Sep 24, 2026: price 7.90 MYR, calculated fair value 7.42 MYR (−6%), Quality Score 61/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 4863 calculated?
We run Telekom Malaysia Bhd through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 7.42 MYR, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Telekom Malaysia Bhd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Telekom Malaysia Bhd (4863)?
The closing price on Sep 23, 2026 was 7.90 MYR. Our model-based fair value is 7.42 MYR, about −6% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Telekom Malaysia Bhd right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Telekom Malaysia Bhd (4863) come from?
Earnings per share at Telekom Malaysia Bhd grew +10.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share −0.1 %, EBIT margin +6.6 %, tax rate +2.8 %, residual (interest, one-offs) +0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Telekom Malaysia Bhd
How large is the market capitalisation of Telekom Malaysia Bhd (4863)?
The market capitalisation of Telekom Malaysia Bhd is 30.3B MYR (≈ $7.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Telekom Malaysia Bhd (4863)?
The price-to-sales ratio of Telekom Malaysia Bhd is 2.71 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Telekom Malaysia Bhd (4863)?
Earnings per share at Telekom Malaysia Bhd are 0.4200 MYR (price ÷ EPS = P/E 18.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Telekom Malaysia Bhd (4863)?
The dividend yield of Telekom Malaysia Bhd is 3.4% (payout 64.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Telekom Malaysia Bhd (4863)?
The net margin of Telekom Malaysia Bhd is 14.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Telekom Malaysia Bhd (4863)?
The return on equity (ROE) of Telekom Malaysia Bhd is 16.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Telekom Malaysia Bhd (4863)?
On an EBIT basis the return on assets of Telekom Malaysia Bhd is 9.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Telekom Malaysia Bhd (4863)?
The operating margin of Telekom Malaysia Bhd is 14.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Telekom Malaysia Bhd (4863)?
Revenue at Telekom Malaysia Bhd is growing +2.9% versus a year earlier (3y avg −0.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Telekom Malaysia Bhd (4863)?
Earnings per share at Telekom Malaysia Bhd are growing −19.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Telekom Malaysia Bhd (4863) carry?
The net debt of Telekom Malaysia Bhd is 1.1B MYR (fiscal year 2025, ≈ 0.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 24, 2026