EN DE

Tencent Holdings Ltd (0700) Fair Value & Analysis

Communication Services · HK · Market cap HK$4.1T (≈ $528B) · ISIN KYG875721634

What is Tencent Holdings Ltd really worth?

TH Tencent Holdings Ltd 0700 · HK
PriceHK$442.80
Fair ValueHK$449.03
Upside+1.4%
Quality70/100

A solid business, currently priced close to our fair value of HK$449.03.

Watch Tencent Holdings Ltd for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

✓Healthy Growth (revenue 5y +9.3 %/yr)
✓Highly profitable · 30.6% net margin
✓Low debt · generates free cash flow
✓Ranks above peers (9/15)
✓Wide moat 89/100

Risks

!The models disagree: range HK$329.59 to HK$1,352
!Weak on dividend: 24 out of 100

For context

·1.20% dividend yield
Evidence: High Range HK$329.59 – HK$1,352

Fair value as of: Aug 31, 2026

From 26 valuation models · updated 5 days ago

Share price −10.0% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (HK$329.59 to HK$1,352). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.

Price vs Fair Value (5 years)

HK$669.70 HK$183.98 Fair Value HK$449.03 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range HK$183.98 – HK$669.70 · fair‑value band HK$329.59 – HK$1,352 · the HK$442.80 price screens below the HK$449.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Tencent Holdings Ltd (0700) currently trades at HK$442.80, while our model-based Fair Value estimate is HK$449.03, implying the stock looks roughly 1.4% fairly valued today. The Quality Score stands at 70/100 (solid quality), in the Communication Services sector. Bull case: the Growth Earnings group reads highest at a median of HK$892.47 per share, and 14 of the 26 models we run sit above the HK$442.80 price. Bear case: the Dividend Discount group reads lowest at HK$71.73, and 12 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tencent Holdings Ltd generated revenue of HK$768B 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 HK$258B. Fundamentals as of Aug 31, 2026

Our scenario range runs from HK$329.59 (bear case) to HK$1,352 (bull case); at HK$442.80, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −38% fair-value upside, at 1%, 0700 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$15.84 per share, which is 3.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF HK$356.56 HK$587.61 HK$1,343 74
EPV HK$194.93 HK$232.98 HK$266.81 74
Growth DCF HK$334.86 HK$667.25 HK$1,368 73
All 26 models by family
DCF Models
FCF DCF HK$356.56 HK$587.61 HK$1,343 74
Owner Earnings HK$308.30 HK$750.19 HK$1,719 69
5Y Revenue Exit HK$223.10 HK$389.23 HK$735.96 69
5Y EBITDA Exit HK$315.51 HK$576.18 HK$1,087 71
5Y P/E Exit HK$396.32 HK$932.80 HK$1,668 67
10Y Revenue Exit HK$257.22 HK$562.90 HK$748.61 66
10Y EBITDA Exit HK$334.54 HK$766.60 HK$1,518 64
10Y P/E Exit HK$394.86 HK$944.72 HK$1,858 59
Earnings-Based
Graham-Dodd HK$169.85 HK$1,185 HK$1,662 63
Lynch FV HK$492.54 HK$703.63 HK$914.72 61
PEG = 1.0 HK$492.54 HK$703.63 HK$914.72 57
EPV HK$194.93 HK$232.98 HK$266.81 74
Dividend Discount
Gordon GGM HK$40.11 HK$87.57 HK$147.33 65
DDM Multi-Stage HK$40.11 HK$71.73 HK$91.26 66
Multiples
P/E Multiple HK$412.14 HK$549.51 HK$686.89 63
P/S Multiple HK$219.23 HK$292.30 HK$365.38 58
P/B Multiple HK$318.47 HK$424.62 HK$530.78 55
EV/EBIT HK$301.31 HK$408.65 HK$515.99 66
EV/EBITDA HK$286.82 HK$389.33 HK$491.84 67
EV/Revenue HK$154.66 HK$229.83 HK$304.99 53
Asset-Based
NCAV (Graham) HK$64.14 HK$85.94 HK$128.27 54
Growth DCF
Growth DCF HK$334.86 HK$667.25 HK$1,368 73
Rev-Margin DCF HK$232.24 HK$448.49 HK$869.54 68
Economic Profit
Residual Income HK$175.75 HK$241.23 HK$1,231 64
ROIC Compounder HK$264.78 HK$393.19 HK$500.59 71
Growth Earnings
Growth-Adj P/E HK$624.73 HK$892.47 HK$1,160 67

Widest divergence: Growth Earnings (HK$892.47) versus Dividend Discount (HK$71.73). Highest evidence: FCF DCF (74).

Notify me when 0700 reaches fair value

Put 0700 on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 15.9
P/S ratio 4.76 P/E × margin
EPS (TTM) HK$28.70 price ÷ EPS = P/E 15.9
Dividend yield 1.2% payout 18.5%
Net margin 29.9% FY2025
Return on equity 20.5% TTM
More key figures
Profitability
Return on assets (EBIT) 11.5% avg 5y
Operating margin 34.3% TTM
Growth
Revenue (TTM) HK$768B TTM
Revenue growth (YoY) +9.1% 3y avg +10.7%
EPS growth (YoY) +22.9%
Balance sheet & cash flow
Free cash flow HK$190B FY2025
Net debt HK$258B FY2025 · ≈ 1.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 68 · Market factors (momentum, volatility) 35

Profitability 59
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 98
Buybacks instead of dilution

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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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

Growth Quality 89/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$752B
Latest YoY
+13.9%
Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.7%
Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.3%
Avg. revenue growth/yr (22Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+37.0%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.2% (8.0 + 1.2)
Revenue +7.6%/yr
FY21 560B CNY
FY22 555B CNY
FY23 609B CNY
FY24 660B CNY
FY25 752B CNY
Net income +0.0%/yr
FY21 225B CNY
FY22 188B CNY
FY23 115B CNY
FY24 194B CNY
FY25 225B CNY
Character of growth · EPS growth decomposed (2014-2025) +21.3 % p.a.
Revenue per share +22.2 %

of which total revenue +22.2 % · buybacks/dilution +0.0 %

EBIT margin −2.6 %
Tax rate −0.1 %
Residual (interest, one-offs) +2.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

Watch 0700: get an alert when its fair value changes →

Run the numbers yourself: free valuation calculators
DCF CalculatorGraham NumberPeter Lynch FormulaDDM CalculatorFama-French ModelIntrinsic Value
Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Tencent Holdings Ltd · Fair Value
HK$449.03 +1%Fair Value
Calculator →

Cite: Fair Value Calculator (2026). "Tencent Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/0700

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Internet Content & Information · 153 stocks

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.

Quality Score 70 · Top 25%
Fair Value upside +1% · Above median
Return on equity (TTM) 21% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 31% · Top 25%
Operating margin (TTM) 34% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 1.2% · Below median
Debt / equity 0.29× · Higher than 75% of peers

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/E (TTM) 15.9× · Cheaper than median
P/B 3.59× · Pricier than 75% of peers
P/S (TTM) 5.39× · Pricier than 75% of peers
P/FCF 2.8× · Cheaper than median
EV/EBITDA 15.3× · Pricier than median
PEG 1.35× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE35 · sector 0
FUTURE46 · sector 31
PAST82 · sector 9
HEALTH86 · sector 98
DIVIDEND24 · sector 36

Insider activity: 45/100

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

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $340.65 $145.14 −57%
Meta Platforms, Inc META $571.10 $534.91 −6%
Spotify Technology S.A SPOT $547.51 $211.87 −61%
Reddit, Inc RDDT $153.29 $39.59 −74%
Baidu, Inc 89888 HK$79.10 HK$28.84 −64%
Kuaishou Technology, an investment holding company, 81024 HK$34.50 HK$63.28 +83%
NAVER Corporation 035420 213,500 KRW 231,585 KRW +8%
Tencent Music Entertainment Group 1698 HK$35.14 HK$66.77 +90%
REA Group REA A$177.42 A$88.53 −50%
Pinterest, Inc PINS $23.19 $14.38 −38%

Compare Tencent Holdings Ltd with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Communication Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is Tencent Holdings Ltd (0700) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of HK$449.03 versus a price of HK$442.80, about +1% upside (fairly valued).
What is the fair value of 0700?
Our model-based fair value for Tencent Holdings Ltd is HK$449.03 (as of Aug 31, 2026), built from audited fundamentals. The current price: HK$442.80.
What is the quality score of 0700?
Tencent Holdings Ltd has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tencent Holdings Ltd (0700)?
Tencent Holdings Ltd reported trailing-twelve-month revenue of about HK$768B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of 0700?
The net profit margin of Tencent Holdings Ltd is about 30.6%, meaning it keeps roughly 30.6% of revenue as net income. Based on the latest reported figures.
Does Tencent Holdings Ltd pay a dividend?
Tencent Holdings Ltd currently shows a dividend yield of about 1.20% relative to its recent price (as of Aug 31, 2026).
Free · no account needed

Watch Tencent Holdings Ltd in the live analysis

One click puts Tencent Holdings Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.