Taoping Inc.

TAOP

TechnologySoftware - InfrastructureNASDAQ

$1.29

Market Cap: $1.30M

Taoping Inc. (TAOP) Valuation Summary

Updated May 11, 2026 04:16

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.74 – $43.84	$2.74	+111.3%
Revenue DCF 10Y	—	N/A	—

Valuation History

DCF Analysis

Taoping Inc. (TAOP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.74

Market Price

$1.30

Upside / Downside

+111.3%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -29.0% to a target of 10.2% over 5 years, discounted at a WACC of 10.1%, Taoping Inc. (TAOP) has an intrinsic value of $2.74 per share (range: $2.74 – $43.84).

Key Assumptions

Current Operating Margin

-29.0%

Target Operating Margin

10.2%

WACC

10.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

15.2%

Target CapEx/Rev

20.4%

D&A/Revenue

13.6%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	35	12.3%	-21.1%	-7	-7	5	(6)	-8	-0	-0
2027	23	-32.7%	-13.3%	-3	-3	3	(4)	-3	-1	-1
2028	50	114.6%	-5.5%	-3	-3	7	(9)	8	-13	-10
2029	58	16.7%	2.4%	1	1	8	(11)	2	-5	-3
2030	52	-10.9%	10.2%	5	4	7	(11)	-2	3	2

Enterprise Value Bridge

Sum of PV(FCFF)-13

Terminal Value (Gordon Growth at 3.0%)37

PV of Terminal Value24

Enterprise Value11

(–) Net Debt8

Equity Value3

(÷) Shares Outstanding1

Fair Value per Share$2.74

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
8.1%	$-20	$-4	$12	$28	$44
9.1%	$-20	$-7	$6	$20	$33
10.1%	$-20	$-8	$3	$14	$25
11.1%	$-20	$-10	$0	$10	$19
12.1%	$-19	$-11	$-2	$7	$15

Current price: $1.29. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 29.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$2.74 – $43.84

$2.74

+111.3%

Revenue DCF 10Y

—

N/A

—

DCF Analysis

Taoping Inc. (TAOP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.74

Market Price

$1.30

Upside / Downside

+111.3%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-29.0%

Target Operating Margin

10.2%

WACC

10.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

15.2%

Target CapEx/Rev

20.4%

D&A/Revenue

13.6%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	35	12.3%	-21.1%	-7	-7	5	(6)	-8	-0	-0
2027	23	-32.7%	-13.3%	-3	-3	3	(4)	-3	-1	-1
2028	50	114.6%	-5.5%	-3	-3	7	(9)	8	-13	-10
2029	58	16.7%	2.4%	1	1	8	(11)	2	-5	-3
2030	52	-10.9%	10.2%	5	4	7	(11)	-2	3	2

Enterprise Value Bridge

Sum of PV(FCFF)-13

Terminal Value (Gordon Growth at 3.0%)37

PV of Terminal Value24

Enterprise Value11

(–) Net Debt8

Equity Value3

(÷) Shares Outstanding1

Fair Value per Share$2.74

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
8.1%	$-20	$-4	$12	$28	$44
9.1%	$-20	$-7	$6	$20	$33
10.1%	$-20	$-8	$3	$14	$25
11.1%	$-20	$-10	$0	$10	$19
12.1%	$-19	$-11	$-2	$7	$15

Current price: $1.29. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 29.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.