Tencent Holdings Limited

SEHK:80700 Stock Report

Market Cap: CN¥4.5t

Tencent Holdings Valuation

Is 80700 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 80700 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CN¥602.42
Fair Value
18.4% undervalued intrinsic discount
45
Number of Analysts

Below Fair Value: 80700 (CN¥491.6) is trading below our estimate of fair value (CN¥602.42)

Significantly Below Fair Value: 80700 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 80700?

Key metric: As 80700 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 80700. This is calculated by dividing 80700's market cap by their current earnings.
What is 80700's PE Ratio?
PE Ratio22.3x
EarningsCN¥200.01b
Market CapCN¥4.46t

Price to Earnings Ratio vs Peers

How does 80700's PE Ratio compare to its peers?

The above table shows the PE ratio for 80700 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.8x
1024 Kuaishou Technology
19.4x16.46%HK$321.3b
1357 Meitu
60.4x18.06%HK$53.0b
9911 Newborn Town
25x32.02%HK$13.1b
9999 NetEase
18.1x7.55%HK$638.0b
80700 Tencent Holdings
22.3x9.84%CN¥4.8t

Price-To-Earnings vs Peers: 80700 is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (30.8x).


Price to Earnings Ratio vs Industry

How does 80700's PE Ratio compare vs other companies in the Asian Interactive Media and Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
80700 22.3xIndustry Avg. 23.8xNo. of Companies15PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 80700 is good value based on its Price-To-Earnings Ratio (22.3x) compared to the Asian Interactive Media and Services industry average (23.8x).


Price to Earnings Ratio vs Fair Ratio

What is 80700'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.

80700 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: 80700 is good value based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).


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 80700 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥491.60
CN¥582.77
+18.55%
8.72%CN¥655.62CN¥364.56n/a45
Jul ’26CN¥461.80
CN¥583.23
+26.30%
8.93%CN¥656.18CN¥364.56n/a45
Jun ’26CN¥457.00
CN¥582.55
+27.47%
9.19%CN¥656.18CN¥364.56n/a45
May ’26CN¥445.60
CN¥579.39
+30.03%
10.32%CN¥663.18CN¥369.35n/a45
Apr ’26CN¥471.80
CN¥567.97
+20.38%
11.91%CN¥662.07CN¥369.35n/a45
Mar ’26CN¥449.20
CN¥495.44
+10.29%
12.13%CN¥657.27CN¥296.58n/a45
Feb ’26CN¥375.20
CN¥482.17
+28.51%
10.70%CN¥657.20CN¥296.58n/a45
Jan ’26CN¥395.20
CN¥484.23
+22.53%
10.90%CN¥660.93CN¥292.81n/a46
Dec ’25CN¥369.80
CN¥479.83
+29.75%
11.22%CN¥654.41CN¥292.81n/a47
Nov ’25CN¥384.60
CN¥459.51
+19.48%
12.76%CN¥643.41CN¥290.27n/a48
Oct ’25CN¥400.40
CN¥433.26
+8.21%
10.79%CN¥639.87CN¥290.27n/a49
Sep ’25CN¥348.00
CN¥434.43
+24.83%
10.90%CN¥645.10CN¥290.27n/a49
Aug ’25CN¥339.80
CN¥432.34
+27.23%
12.69%CN¥655.19CN¥281.81CN¥491.6049
Jul ’25CN¥348.00
CN¥428.40
+23.10%
12.71%CN¥654.49CN¥281.81CN¥461.8048
Jun ’25CN¥335.40
CN¥425.16
+26.76%
12.46%CN¥650.92CN¥281.81CN¥457.0049
May ’25CN¥323.40
CN¥387.10
+19.70%
14.79%CN¥650.22CN¥266.20CN¥445.6048
Apr ’25CN¥282.60
CN¥389.25
+37.74%
15.40%CN¥648.03CN¥266.20CN¥471.8048
Mar ’25CN¥254.00
CN¥397.55
+56.52%
14.39%CN¥642.44CN¥266.72CN¥449.2048
Feb ’25CN¥249.60
CN¥399.35
+60.00%
14.41%CN¥642.44CN¥266.72CN¥375.2048
Jan ’25CN¥265.60
CN¥408.90
+53.95%
13.43%CN¥642.44CN¥266.72CN¥395.2049
Dec ’24CN¥292.80
CN¥414.41
+41.53%
13.07%CN¥653.32CN¥266.72CN¥369.8049
Nov ’24CN¥269.40
CN¥413.00
+53.31%
13.20%CN¥655.20CN¥271.27CN¥384.6049
Oct ’24CN¥285.20
CN¥413.92
+45.13%
13.16%CN¥655.20CN¥268.38CN¥400.4049
Sep ’24CN¥301.40
CN¥412.70
+36.93%
13.24%CN¥655.55CN¥268.38CN¥348.0050
Aug ’24CN¥325.00
CN¥407.87
+25.50%
13.33%CN¥647.80CN¥257.32CN¥339.8050
AnalystConsensusTarget
Consensus Narrative from 45 Analysts
CN¥582.90
Fair Value
15.7% undervalued intrinsic discount
45
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/08/02 11:18
End of Day Share Price 2025/08/01 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Tencent Holdings Limited is covered by 96 analysts. 48 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Qun HuangABCI Securities Company Limited
Zixiao YangArete Research Services LLP
Kevin MattisonAvior Capital Markets