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Tencent Holdings (HTCD) Fair Value & Analysis

Communication Services · SG · Market cap 64.1B SGD

TH Tencent Holdings HTCD · SG
Price7.38 SGD
Fair Value9.31 SGD
Upside+26.2%
Quality59/100
Healthy Growth
Highly profitable · 30.6% net margin
Low debt · generates free cash flow
Ranks above peers (10/11)
Wide moat 85/100
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Evidence: Medium Range 6.85 SGD – 17.80 SGD Share as image

Fair value as of: Jul 4, 2026

From 24 valuation models · updated 25 days ago

Share price +8.1% over the past month.

What matters now

  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (6.85 SGD to 17.80 SGD) leaves room in how you read the outcome.

Price vs Fair Value (12 months)

11.14 SGD 6.83 SGD Fair Value 9.31 SGD Jul 2025 Jul 2026

12‑month range 6.83 SGD – 11.14 SGD · fair‑value band 6.85 SGD – 17.80 SGD · the 7.38 SGD price screens below the 9.31 SGD fair value. As of Jul 4, 2026.

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Analysis

Tencent Holdings (HTCD) currently trades at 7.38 SGD, while our model-based Fair Value estimate is 9.31 SGD, implying the stock looks roughly 26.2% undervalued today. We read business quality at 59/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Tencent Holdings generated revenue of 768B SGD at a net margin of 30.6%. Revenue grew 9.1% year over year. It earns a return on equity of 20.5%. Net debt stands at 247B SGD. Fundamentals as of Jul 4, 2026

Our scenario range runs from 6.85 SGD (bear case) to 17.80 SGD (bull case); at 7.38 SGD, the current price sits within that range. The share trades about 34% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -12% fair-value upside, at 26%, HTCD screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 768B SGD
Revenue growth (YoY) +9.1%
Net margin 30.6%
Return on equity 20.5%
Free cash flow 190B SGD FY2025
P/E ratio 1.5
More key figures
Operating margin 34.3%
EPS (TTM) 4.60 SGD
EPS growth (YoY) +22.9%
Net debt 247B SGD FY2025

Figures from reported company fundamentals · as of Jul 4, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100
Profitability 59
Quality Growth 62
Cashflow 76
Fin. Strength 64
Investment 33
Low Volatility 73
Momentum 21
52W Momentum 14
Net Issuance 96

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally.

Full company description

Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally. The company's consumers business includes communications and social services, such as instant messaging and social networks; digital content, including online games, videos, live streaming, news, music, and literature; fintech services, which include mobile payment, wealth management, consumer loans, and securities trading; and various tools comprising network security management, browsing, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offer digital tools, including user insight, creative management, placement strategy, and digital assets management; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, and security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio and television industries. The company also invests in, produces, and distributes films and television programs; offers copyrights licensing and merchandise sales and other services; provides internet advertisement services; and offers software development, and information technology and system integration services, as well as develops and operates mobile games. The company was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holdings Limited in February 2004. Tencent Holdings Limited was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tencent Holdings reported revenue of 752B SGD in FY2025 versus 560B SGD in FY2021, a compound +7.6%/yr. Reported net income was 225B SGD in FY2025, compounding +0.0%/yr from FY2021.

Revenue +7.6%/yr
FY21 560B SGD
FY22 555B SGD
FY23 609B SGD
FY24 660B SGD
FY25 752B SGD
Net income +0.0%/yr
FY21 225B SGD
FY22 188B SGD
FY23 115B SGD
FY24 194B SGD
FY25 225B SGD

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Cite: Fair Value Calculator (2026). "Tencent Holdings Fair Value". https://www.fairvalue-calculator.com/stock/HTCD

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 70 / 0
FUTURE 46 / 31
PAST 82 / 8
HEALTH 86 / 98
DIVIDEND 0 / 44

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 4, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $372.19 $329.26 -12%
Meta Platforms, Inc META $563.85 $651.16 +15%
Spotify Technology S.A SPOT $503.10 $263.98 -48%
Recruit Holdings RCRUY $16.00 $9.86 -38%
Baidu, Inc BAIDF $14.25 $8.23 -42%
Reddit, Inc RDDT $172.21 $97.15 -44%
Kuaishou Technology, an investment holding company, KUASF $6.13 $13.39 +118%
Tencent Music Entertainment Group TCMEF $6.24 $7.25 +16%
NAVER Corporation 035420 227,000 KRW 281,785 KRW +24%
REA Group RPGRF $124.45 $59.79 -52%

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Frequently asked questions

Is Tencent Holdings (HTCD) overvalued or undervalued?
As of Jul 4, 2026, our model estimates a fair value of 9.31 SGD versus a price of 7.38 SGD, about +26% (undervalued). Model-based estimate, not financial advice.
What is the fair value of HTCD?
Our model-based fair value for Tencent Holdings is 9.31 SGD (as of Jul 4, 2026), built from audited fundamentals. The current price is 7.38 SGD.
What is the quality score of HTCD?
Tencent Holdings has a Quality Score of 59/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Tencent Holdings (HTCD)?
Tencent Holdings reported trailing-twelve-month revenue of about 768B SGD (latest available figure, as of Jul 4, 2026).
What is the net profit margin of HTCD?
The net profit margin of Tencent Holdings is about 30.6%, meaning it keeps roughly 30.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.