Tencent Holdings Limited

WBAG:NNND Stock Report

Market Cap: €471.4b

Tencent Holdings Valuation

Is NNND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NNND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NNND (€51.14) is trading below our estimate of fair value (€102.35)

Significantly Below Fair Value: NNND is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NNND?

Key metric: As NNND is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NNND. This is calculated by dividing NNND's market cap by their current earnings.
What is NNND's PE Ratio?
PE Ratio21x
EarningsCN¥169.77b
Market CapCN¥3.56t

Price to Earnings Ratio vs Peers

How does NNND's PE Ratio compare to its peers?

The above table shows the PE ratio for NNND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
META Meta Platforms
27.1x10.9%US$1.5t
GOOGL Alphabet
24.5x10.9%US$2.3t
BIDU Baidu
10.7x4.6%US$31.0b
1024 Kuaishou Technology
11.5x16.9%HK$194.1b
NNND Tencent Holdings
21x11.3%€3.8t

Price-To-Earnings vs Peers: NNND is expensive based on its Price-To-Earnings Ratio (21x) compared to the peer average (18.7x).

Price to Earnings Ratio vs Industry

How does NNND's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
NNND 21.0xIndustry Avg. 14.4xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NNND is expensive based on its Price-To-Earnings Ratio (21x) compared to the European Interactive Media and Services industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is NNND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NNND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NNND's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NNND forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€51.14
€62.83
+22.9%
11.3%€85.94€38.19n/a47
Dec ’25€48.81
€62.66
+28.4%
11.4%€85.47€38.18n/a46
Nov ’25€49.56
€59.61
+20.3%
12.9%€83.37€37.61n/a47
Oct ’25€51.12
€55.44
+8.5%
10.9%€81.89€37.15n/a48
Sep ’25€43.81
€55.27
+26.2%
11.0%€82.07€36.93n/a48
Aug ’25€43.06
€55.30
+28.4%
12.8%€83.81€36.05n/a48
Jul ’25€44.33
€55.02
+24.1%
12.8%€84.07€36.20n/a47
Jun ’25€42.64
€54.10
+26.9%
12.6%€82.85€35.87n/a48
May ’25€41.22
€50.02
+21.4%
14.8%€83.99€34.38n/a48
Apr ’25€36.19
€50.14
+38.6%
15.4%€83.44€34.28n/a48
Mar ’25€32.61
€50.97
+56.3%
14.4%€82.37€34.20n/a48
Feb ’25€32.15
€51.16
+59.1%
14.4%€82.31€34.17n/a48
Jan ’25€33.77
€52.18
+54.5%
13.4%€81.99€34.04n/a49
Dec ’24€37.46
€52.87
+41.1%
13.1%€83.35€34.03€48.8149
Nov ’24€34.91
€53.40
+53.0%
13.2%€84.72€35.08€49.5649
Oct ’24€36.60
€53.63
+46.5%
13.2%€84.89€34.77€51.1249
Sep ’24€39.29
€52.78
+34.3%
13.2%€83.83€34.32€43.8150
Aug ’24€41.22
€51.74
+25.5%
13.3%€82.17€32.64€43.0650
Jul ’24€39.02
€51.39
+31.7%
13.3%€80.38€32.53€44.3350
Jun ’24€38.35
€53.22
+38.8%
13.4%€83.71€33.88€42.6450
May ’24€40.30
€51.64
+28.1%
14.3%€80.28€28.76€41.2250
Apr ’24€45.25
€52.18
+15.3%
14.8%€82.09€29.36€36.1950
Mar ’24€43.55
€51.26
+17.7%
16.5%€83.08€29.56€32.6149
Feb ’24€44.67
€49.92
+11.8%
16.7%€82.72€27.65€32.1549
Jan ’24€39.52
€48.40
+22.5%
19.3%€89.68€27.49€33.7750
Dec ’23€36.26
€48.36
+33.4%
18.6%€86.45€27.38€37.4652

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 11:24
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Tencent Holdings Limited is covered by 100 analysts. 52 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sau Shing ChowABCI Securities Company Limited
Richard KramerArete Research Services LLP
Zixiao YangArete Research Services LLP