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TC

Tencent Holdings Limited

TCEHY

Communication 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.

The Value RailUndervalued· +32% upside
1 of 1 fair values are above today's price of $50.
← Lower priceHigher price →
Buffett

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

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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 account

    P/E · PEG

  • Is this a good business?Strong

    Returns on capital, margins, and the cash they throw off.

    Quality score — free account

    ROIC · margins

  • Can it survive a bad year?Mixed

    Debt, liquidity, and balance-sheet resilience.

    Safety score — free account

    Debt · liquidity

  • Are the numbers honest?Strong

    Whether reported profit is backed by real cash.

    Integrity score — free account

    Cash-backed profit

  • Is it getting better?Strong

    Revenue, earnings, and cash-flow trajectory.

    Growth score — free account

    Revenue · earnings

  • Who runs it — and are they buying?Strong

    Capital allocation, dilution, and insider conviction.

    Stewardship score — free account

    Dilution · 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.

See the numbers — free account

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 account

Growth disappoints and the multiple compresses — the downside if things go wrong.

Base case

Base case price target — free account

The most likely path given current fundamentals — the scenario to anchor on.

Bull case

Bull case price target — free account

Execution beats expectations and growth holds — the upside if things go right.

See all three price targets — free account

Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
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 Margin29.9%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

Tencent 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.