Tencent Holdings Limited
TCEHYCommunication Services · Internet Content & Information · OTC
$50.45
P/E 14.7×
Is Tencent Holdings Limited (TCEHY) Undervalued? Valuation & Fair Price
At $50.45, 3 of the 4 frameworks would pass on Tencent Holdings Limited today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.
Valuo fair-value verdict
Tencent Holdings Limited looks 22% overvalued
TCEHY trades at $50.45 versus a blended fair value of $39.50 across 4 investor frameworks. That's a 22% premium over our estimate — the exact buy-below price from each framework is below.
The four investor lenses
See how each legend judges TCEHY
Pick a lens — the fair-value rail and its checklist update. The exact prices unlock with a free account.
Buffett: Wonderful businesses at a fair price — moat, high returns on capital, owner earnings.
Where Buffett marks fair value — the exact price is in the full analysis.
Buffett's checklist
Return on Equity
ROE Consistency
ROE Quality (Low Leverage)
Debt Levels
The full checklist, the exact fair value, and all four lenses side by side
Unlock free →The six questions · TCEHY
signal free · score locked
- Is it cheap enough?Weak
A great business at the wrong price is still a bad buy.
Price score — free accountP/E · PEG
- Is this a good business?Strong
Returns on capital, margins, and the cash they throw off.
Quality score — free accountROIC · margins
- Can it survive a bad year?Mixed
Debt, liquidity, and balance-sheet resilience.
Safety score — free accountDebt · liquidity
- Are the numbers honest?Strong
Whether reported profit is backed by real cash.
Integrity score — free accountCash-backed profit
- Is it getting better?Strong
Revenue, earnings, and cash-flow trajectory.
Growth score — free accountRevenue · earnings
- Who runs it — and are they buying?Strong
Capital allocation, dilution, and insider conviction.
Stewardship score — free accountDilution · insiders
Strong on Quality, Integrity, Growth, Stewardship; weak on Price.
Inside · Price
Price is what you pay for the cash a business earns. Roughly under ~15× earnings is cheap; over ~30× the market is already pricing in strong growth, so you need that growth to show up.
The exact number, the reference bands, and each legend's take unlock free.
Bear · base · bull
Three ways TCEHY could play out
A fair-value target for each scenario, with the assumptions behind it.
Bear case
Bear case price target — free accountGrowth disappoints and the multiple compresses — the downside if things go wrong.
Base case
Base case price target — free accountThe most likely path given current fundamentals — the scenario to anchor on.
Bull case
Bull case price target — free accountExecution beats expectations and growth holds — the upside if things go right.
Company financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Revenue | $109.5B | $98.9B | $91.2B | $83.1B | $83.9B |
| Rev. Growth | +10.8% | +8.4% | +9.8% | -1.0% | — |
| Net Income | $32.8B | $29.1B | $17.3B | $28.2B | $33.7B |
| Net Margin | 29.9% | 29.4% | 18.9% | 33.9% | 40.1% |
| EPS (Diluted) | $3.60 | $3.14 | $1.83 | $2.96 | $3.53 |
About Tencent Holdings Limited
CEO
Huateng Ma
Sector
Communication Services
Industry
Internet Content & Information
Website
www.tencent.comTencent Holdings Limited is an investment holding company that specializes in providing a wide array of value-added services (VAS) and online advertising solutions, operating both within Mainland China and across international markets. The company's diverse business operations are structured into several key segments: Value-Added Services (VAS), Online Advertising, FinTech and Business Services, and other various ventures. Tencent's offerings encompass popular online games, extensive social networking platforms, cutting-edge FinTech and cloud computing solutions, and comprehensive digital advertising services. Beyond these core areas, the company is also actively involved in the production, investment, and distribution of films and television programs for external clients, alongside managing copyright licensing, merchandise sales, and related activities. Further expanding its technological and entertainment footprint, Tencent develops proprietary software, operates its significant online gaming portfolio, and delivers services in information technology, system integration, and asset management. Its cultural ventures extend to online literature and digital music entertainment platforms. Established in 1998, Tencent Holdings maintains its headquarters in Shenzhen, People's Republic of China.
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Data as of Oct 6, 2026 · price updated Oct 21, 2026. Sourced from SEC filings & Financial Modeling Prep.
Educational Use Only · Not Financial Advice
Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.