Is Tencent Holdings Limited (TCEHY) Undervalued? Valuation & Fair Price
At $54.50, 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.
Tencent Holdings Limited
TCEHYCommunication Services · Internet Content & Information · OTC
$54.50
P/E 14.7×
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.
Investor scorecard
How the four investors rate Tencent Holdings Limited
3 of 4 frameworks urge caution
Investor model analysis
Details lockedAt $54.50, 3 of 4 frameworks say Avoid
Intrinsic Value (DCF)
Warren Buffett's valuation model · select an investor above to switch
Intrinsic Value
Locked — upgrade to viewBuy Below
Locked — upgrade to viewStrong Buy
Locked — upgrade to viewMargin of Safety
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Scenario analysis
Bear, base & bull
Three growth assumptions, three fair values — and where today's price lands
What's working
Key strengths
Identified by Buffett framework analysis
Return on Equity
ROE Consistency
ROE Quality (Low Leverage)
Risk factors & concerns — free account
UnlockCompany financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Revenue | $109.2B | $98.6B | $90.9B | $82.8B | $83.6B |
| Rev. Growth | +10.8% | +8.4% | +9.8% | -1.0% | — |
| Net Income | $32.6B | $29.0B | $17.2B | $28.1B | $33.6B |
| Net Margin | 29.9% | 29.4% | 18.9% | 33.9% | 40.1% |
| EPS (Diluted) | $3.59 | $3.13 | $1.82 | $2.95 | $3.52 |
| Free Cash Flow | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view |
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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.