We’ve recently updated our valuation analysis.

Tencent Holdings Valuation

Is 700 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 700?

Other financial metrics that can be useful for relative valuation.

700 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA17.1x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does 700's PE Ratio compare to its peers?

The above table shows the PE ratio for 700 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.9x
META Meta Platforms
10.1x7.0%US$290.2b
6100 Tongdao Liepin Group
14.8x25.7%HK$4.2b
GOOGL Alphabet
18.4x12.4%US$1.2t
3700 Inkeverse Group
8.3xn/aHK$1.6b
700 Tencent Holdings
14x13.7%HK$2.7t

Price-To-Earnings vs Peers: 700 is expensive based on its Price-To-Earnings Ratio (14x) compared to the peer average (12.9x).


Price to Earnings Ratio vs Industry

How does 700's PE Ratio compare vs other companies in the Asian Interactive Media and Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.9%
n/an/an/a

Price-To-Earnings vs Industry: 700 is good value based on its Price-To-Earnings Ratio (14x) compared to the Asian Interactive Media and Services industry average (20x)


Price to Earnings Ratio vs Fair Ratio

What is 700'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.

700 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: 700 is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).


Share Price vs Fair Value

What is the Fair Price of 700 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 700 (HK$285.8) is trading below our estimate of fair value (HK$588.04)

Significantly Below Fair Value: 700 is trading below fair value by more than 20%.


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 700 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$285.80
HK$388.90
+36.1%
18.6%HK$694.83HK$218.02n/a52
Nov ’23HK$227.40
HK$391.55
+72.2%
18.9%HK$691.39HK$231.51n/a51
Oct ’23HK$266.40
HK$421.51
+58.2%
15.1%HK$706.88HK$279.67n/a52
Sep ’23HK$324.60
HK$434.38
+33.8%
15.4%HK$727.96HK$288.01n/a52
Aug ’23HK$299.60
HK$456.71
+52.4%
13.5%HK$735.63HK$296.42n/a51
Jul ’23HK$354.40
HK$466.04
+31.5%
13.8%HK$740.36HK$298.33n/a51
Jun ’23HK$360.40
HK$469.44
+30.3%
14.0%HK$743.86HK$298.91n/a50
May ’23HK$377.40
HK$488.29
+29.4%
17.5%HK$813.33HK$256.11n/a47
Apr ’23HK$378.80
HK$515.17
+36.0%
17.4%HK$838.83HK$265.58n/a47
Mar ’23HK$431.00
HK$599.06
+39.0%
10.8%HK$841.29HK$464.50n/a48
Feb ’23HK$472.00
HK$595.87
+26.2%
11.8%HK$835.55HK$357.83n/a49
Jan ’23HK$456.80
HK$618.18
+35.3%
12.8%HK$818.23HK$358.48n/a50
Dec ’22HK$468.80
HK$620.47
+32.4%
13.1%HK$815.62HK$357.34n/a49
Nov ’22HK$469.60
HK$644.05
+37.1%
13.2%HK$810.92HK$355.28HK$227.4048
Oct ’22HK$461.40
HK$648.14
+40.5%
13.4%HK$805.08HK$352.72HK$266.4048
Sep ’22HK$488.40
HK$660.25
+35.2%
13.7%HK$855.13HK$351.53HK$324.6048
Aug ’22HK$479.00
HK$728.57
+52.1%
12.3%HK$935.90HK$351.28HK$299.6047
Jul ’22HK$584.00
HK$753.24
+29.0%
9.8%HK$934.06HK$501.94HK$354.4047
Jun ’22HK$628.00
HK$760.37
+21.1%
9.7%HK$946.07HK$513.44HK$360.4049
May ’22HK$623.00
HK$774.87
+24.4%
11.6%HK$1,043.05HK$512.59HK$377.4050
Apr ’22HK$654.00
HK$768.56
+17.5%
11.8%HK$1,032.77HK$507.55HK$378.8050
Mar ’22HK$697.00
HK$745.36
+6.9%
14.9%HK$1,031.85HK$423.03HK$431.0047
Feb ’22HK$712.00
HK$729.49
+2.5%
13.4%HK$997.22HK$422.72HK$472.0048
Jan ’22HK$564.00
HK$683.06
+21.1%
8.7%HK$847.23HK$418.27HK$456.8048
Dec ’21HK$578.00
HK$680.19
+17.7%
8.7%HK$846.92HK$415.96HK$468.8048
Nov ’21HK$591.00
HK$620.41
+5.0%
9.6%HK$815.00HK$408.76HK$469.6047

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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