Tencent Holdings Limited

OTCPK:TCTZ.F Stock Report

Market Cap: US$537.5b

Tencent Holdings Valuation

Is TCTZ.F 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 TCTZ.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$67.77
Fair Value
16.4% undervalued intrinsic discount
44
Number of Analysts

Below Fair Value: TCTZ.F ($56.65) is trading below our estimate of fair value ($67.77)

Significantly Below Fair Value: TCTZ.F 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 TCTZ.F?

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

The above table shows the Price to Earnings ratio for TCTZ.F. This is calculated by dividing TCTZ.F's market cap by their current earnings.
What is TCTZ.F's PE Ratio?
PE Ratio20.2x
EarningsCN¥194.07b
Market CapCN¥3.92t

Price to Earnings Ratio vs Peers

How does TCTZ.F's PE Ratio compare to its peers?

The above table shows the PE ratio for TCTZ.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
META Meta Platforms
19.7x9.8%US$1.3t
GOOGL Alphabet
18x10.0%US$1.9t
BIDU Baidu
9x2.7%US$28.4b
PINS Pinterest
8.8x-12.0%US$17.1b
TCTZ.F Tencent Holdings
20.2x9.4%US$4.2t

Price-To-Earnings vs Peers: TCTZ.F is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

How does TCTZ.F's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CHR Cheer Holding
0.5xn/aUS$13.95m
MI NFT
1.6xn/aUS$7.65m
No more companies available in this PE range
TCTZ.F 20.2xIndustry Avg. 16.5xNo. of Companies5PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TCTZ.F is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the US Interactive Media and Services industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is TCTZ.F'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.

TCTZ.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio29x

Price-To-Earnings vs Fair Ratio: TCTZ.F is good value based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (29x).

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 TCTZ.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$59.50
US$79.61
+33.8%
10.0%US$90.85US$50.65n/a44
Apr ’26US$65.47
US$78.36
+19.7%
11.7%US$91.07US$50.86n/a44
Mar ’26US$62.07
US$68.19
+9.9%
12.1%US$90.21US$40.71n/a44
Feb ’26US$52.34
US$66.65
+27.3%
10.7%US$90.64US$40.90n/a44
Jan ’26US$53.23
US$66.49
+24.9%
10.9%US$90.55US$40.11n/a45
Dec ’25US$49.72
US$66.35
+33.5%
11.2%US$90.31US$40.41n/a46
Nov ’25US$53.90
US$64.60
+19.9%
12.9%US$90.35US$40.76n/a47
Oct ’25US$56.16
US$61.74
+9.9%
10.9%US$91.18US$41.36n/a48
Sep ’25US$48.50
US$61.21
+26.2%
11.0%US$90.89US$40.90n/a48
Aug ’25US$45.20
US$59.88
+32.5%
12.8%US$90.75US$39.03n/a48
Jul ’25US$47.05
US$58.94
+25.3%
12.8%US$90.06US$38.78n/a47
Jun ’25US$46.38
US$58.69
+26.5%
12.6%US$89.88US$38.91n/a48
May ’25US$44.06
US$53.48
+21.4%
14.8%US$89.80US$36.76n/a48
Apr ’25US$39.82
US$53.86
+35.3%
15.4%US$89.62US$36.82US$65.4748
Mar ’25US$35.00
US$55.24
+57.8%
14.4%US$89.26US$37.06US$62.0748
Feb ’25US$35.23
US$55.61
+57.9%
14.4%US$89.47US$37.14US$52.3448
Jan ’25US$37.68
US$57.61
+52.9%
13.4%US$90.51US$37.58US$53.2349
Dec ’24US$40.48
US$57.94
+43.1%
13.1%US$91.34US$37.29US$49.7249
Nov ’24US$36.07
US$56.43
+56.4%
13.2%US$89.53US$37.07US$53.9049
Oct ’24US$38.53
US$56.69
+47.2%
13.2%US$89.74US$36.76US$56.1649
Sep ’24US$42.02
US$56.85
+35.3%
13.2%US$90.31US$36.97US$48.5050
Aug ’24US$45.17
US$56.82
+25.8%
13.3%US$90.25US$35.85US$45.2050
Jul ’24US$42.54
US$56.09
+31.8%
13.3%US$87.73US$35.51US$47.0550
Jun ’24US$41.35
US$56.88
+37.5%
13.4%US$89.46US$36.21US$46.3850
May ’24US$43.67
US$56.90
+30.3%
14.3%US$88.46US$31.69US$44.0650
Apr ’24US$48.69
US$56.60
+16.2%
14.8%US$89.05US$31.85US$39.8250
AnalystConsensusTarget
Consensus Narrative from 44 Analysts
US$76.43
Fair Value
25.9% undervalued intrinsic discount
44
Number of Analysts

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 Analysis2025/04/21 20:32
End of Day Share Price 2025/04/21 00:00
Earnings2024/12/31
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 100 analysts. 49 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Zixiao YangArete Research Services LLP
Kevin MattisonAvior Capital Markets
Michael de NobregaAvior Capital Markets