Tencent Holdings (TCTZF) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Tencent Holdings $98.95, price $53.80, upside +83.9%, quality 67 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Tencent Holdings
TCTZF · USClearly undervaluedStrong Fair Value upside, but quality is only moderate.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 28, 2026.
How to read this chart
60‑month range $22.24 – $86.46 · fair‑value band $52.45 – $167.53 · the $53.80 price screens below the $98.95 fair value. Dashed = 300-day average. As of Sep 28, 2026.
Company profile
Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally.
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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.
Stock analysis
Tencent Holdings (TCTZF) currently trades at $53.80, while our model-based Fair Value estimate is $98.95, implying the stock looks roughly 45.6% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $129.13 per share, and 19 of the 26 models we run sit above the $53.80 price.
Bear case: the Dividend Discount group reads lowest at $10.71, and 7 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $52.45 (bear) to $167.53 (bull), the price of $53.80 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Tencent Holdings reported revenue of 732B CNY in FY2025 versus 560B CNY in FY2021, a compound +6.9%/yr. Reported net income was 219B CNY in FY2025, compounding −0.6%/yr from FY2021.
Key figures
Market cap $561B · P/E ratio 15.0 · P/S ratio 4.49 · EPS (TTM) $3.58 · Dividend yield 8.9% · Net margin 29.9% · Return on equity 20.5% · Return on assets (EBIT) 11.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (medium confidence).
What moves the price
The share trades about 38% below its 52-week high and 1% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 10% fair-value upside, at 84%, TCTZF screens cheaper than that median.
Fair Value models
All 26 models by family
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Set up alert →Quality Score breakdown
Of which business quality 64 · Market factors (momentum, volatility) 28
Revenue & earnings trend
Growth Forecast
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Recent news
- Oracle Lands Major Cloud Deal With Tencent
- China's Tencent taps Oracle for 100,000 AI chips in $7B lease deal - report
- Tencent leases 100,000 chips from Oracle for $7 bln- FT
- Zacks Investment Ideas feature highlights: Alibaba, Baidu, Kingsoft Cloud, Tencent, Hesai, Pony AI and WeRide
Compare Tencent Holdings with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Internet Content & Information · 121 stocks
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
Context: sector, industry, market
- Is the Communication Services sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Communication Services
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOG | $341.08 | $334.16 | −2% |
| Meta Platforms, Inc META | $725.18 | $797.70 | +10% |
| Spotify Technology S.A SPOT | $487.38 | $536.12 | +10% |
| Baidu, Inc BIDU | $86.71 | $67.13 | −23% |
| Reddit, Inc RDDT | $145.36 | $131.44 | −10% |
| NAVER Corporation 035420 | 194,700 KRW | 314,922 KRW | +62% |
| Kuaishou Technology, an investment holding company, 1024 | HK$30.02 | HK$101.50 | +238% |
| Tencent Music Entertainment Group 1698 | HK$32.38 | HK$71.46 | +121% |
| REA Group REA | A$157.50 | A$173.25 | +10% |
| Kakao Corp 035720 | 33,450 KRW | 32,003 KRW | −4% |
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Key figures of Tencent Holdings
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