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Tencent Holdings Ltd
HKEX:700

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Tencent Holdings Ltd Logo
Tencent Holdings Ltd
HKEX:700
Watchlist
Price: 310.2 HKD -1.9% Market Closed
Updated: May 31, 2023
Section:
 

Intrinsic Value

Tencent Holdings Ltd. is an investment holding company. [ Read More ]

The intrinsic value of one Tencent Holdings Ltd stock under the Base Case scenario is 421.57 HKD. Compared to the current market price of 310.2 HKD, Tencent Holdings Ltd is Undervalued by 26%.

Key Points:
Intrinsic Value
Base Case
421.57 HKD
Undervaluation 26%
Intrinsic Value
Price
Worst Case
Base Case
Best Case
What is intrinsic value?

Fundamental Analysis

Financials
569B
+3%
Revenue
Growth Rates:
1 Year
+2%
3 Years
+42%
5 Years
+117%
7 Years
+406%
10 Years
+1 471%
119B
+12%
Operating Income
Growth Rates:
1 Year
+7%
3 Years
+18%
5 Years
+55%
7 Years
+198%
10 Years
+931%
191B
+1%
Net Income
Growth Rates:
1 Year
-5%
3 Years
+101%
5 Years
+137%
7 Years
+513%
10 Years
+1 697%
146B
-10%
Operating Cash Flow
Growth Rates:
1 Year
-17%
3 Years
-2%
5 Years
+38%
7 Years
+222%
10 Years
+652%
-78.3B
Capital Expenditures
Growth Rates:
1 Year
-13%
3 Years
+49%
5 Years
+145%
7 Years
+678%
10 Years
-
67.8B
-58%
Free Cash Flow
Growth Rates:
1 Year
-20%
3 Years
-29%
5 Years
-9%
7 Years
+92%
10 Years
+249%

Balance Sheet Decomposition
Tencent Holdings Ltd

1.6T
Assets
857B
Liabilities
1.6T
Assets
857B
Liabilities
Current Assets 566B
Cash & Short-Term Investments 291B
Receivables 71.4B
Other Current Assets 204B
Non-Current Assets 1T
Long-Term Investments 680B
PP&E 85.7B
Intangibles 162B
Other Non-Current Assets 84.7B
Current Liabilities 434B
Accounts Payable 92.4B
Accrued Liabilities 42.8B
Short-Term Debt 6B
Other Current Liabilities 293B
Non-Current Liabilities 423B
Long-Term Debt 331B
Other Non-Current Liabilities 91.8B
Efficiency
44%
Gross Margin
Average:
3 Years
44%
5 Years
45%
21%
Operating Margin
Average:
3 Years
23%
5 Years
24%
34%
Net Margin
Average:
3 Years
32%
5 Years
30%
12%
FCF Margin
Average:
3 Years
25%
5 Years
23%
25%
ROE
Average:
3 Years
26%
5 Years
26%
12%
ROA
Average:
3 Years
13%
5 Years
13%
9%
ROIC
Average:
3 Years
11%
5 Years
13%
10%
ROCE
Average:
3 Years
12%
5 Years
14%
Fundamental Scores

Profitability Score
Profitability Due Diligence

Tencent Holdings Ltd's profitability score is 65/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Gross Profit
Exceptional 3-Year Average ROE
Positive Net Income
65/100
Profitability
Score

Tencent Holdings Ltd's profitability score is 65/100. The higher the profitability score, the more profitable the company is.

Solvency Score
Solvency Due Diligence

Tencent Holdings Ltd's solvency score is 59/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Positive Net Debt
59/100
Solvency
Score

Tencent Holdings Ltd's solvency score is 59/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

Price Targets Summary
Tencent Holdings Ltd

Wall Street analysts forecast Tencent Holdings Ltd stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for Tencent Holdings Ltd is 448.07 HKD with a low forecast of 252.5 HKD and a high forecast of 535.5 HKD.

Lowest Forecast
Wall Street Target
252.5 HKD
19% Downside
Average Forecast
Wall Street Target
448.07 HKD
44% Upside
Highest Forecast
Wall Street Target
535.5 HKD
73% Upside
Lowest
Price Target
252.5 HKD
19% Downside
Average
Price Target
448.07 HKD
44% Upside
Highest
Price Target
535.5 HKD
73% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Competitors
Tencent Holdings Ltd

Suppliers & Customers
Tencent Holdings Ltd

Suppliers
0
Customers
159
There is no information about
Tencent Holdings Ltd
key suppliers
Customers Map

Shareholder Return

Return Decomposition
Main factors of price return

Market capitalization of Tencent Holdings Ltd shares decreased by 12.48% over the past 5 years. The primary factor behind the change was a decrease in P/E multiple from 38.4 to 14.1, leading to a drop in the market capitalization of Tencent Holdings Ltd by 93.84%.

Period
5 Years
1 Year 2 Years 3 Years 5 Years 7 Years 10 Years

Market capitalization of Tencent Holdings Ltd shares decreased by 12.48% over the past 5 years. The primary factor behind the change was a decrease in P/E multiple from 38.4 to 14.1, leading to a drop in the market capitalization of Tencent Holdings Ltd by 93.84%.

-12.48%
3.4T 3T
Market Cap Growth
-93.84%
38.4 14.1
P/E Change
+81.36%
80B 191B
Earnings Growth
Market Cap Growth
-12.48%
P/E Change
-93.84%
Earnings Growth
+81.36%
What is price return decomposition?

Price
Tencent Holdings Ltd

1M 1M
-10%
6M 6M
+13%
1Y 1Y
-9%
3Y 3Y
-20%
5Y 5Y
-13%
10Y 10Y
+471%
Annual Price Range
310.2
52w Low
188.043
52w High
412.0689
Price Metrics
Average Annual Return 7.87%
Standard Deviation of Annual Returns 35.83%
Max Drawdown -73%
Shares Statistics
Market Capitalization 3T HKD
Shares Outstanding 9 587 940 352
Percentage of Shares Shorted
N/A

Company Profile

Tencent Holdings Ltd Logo
Tencent Holdings Ltd

Country

China

Industry

Media

Market Cap

3T HKD

Dividend Yield

0%

Description

Tencent Holdings Ltd. is an investment holding company. The company is headquartered in Shenzhen, Guangdong and currently employs 112,771 full-time employees. The company went IPO on 2004-06-16. The firm operates through three main segments. The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment is mainly involved in provision of payment related services, cloud services and other services.

Contact

GUANGDONG
Shenzhen
Tencent Binhai Towers, No. 33 Haitian 2nd Road, Nanshan District
https://www.tencent.com/

IPO

2004-06-16

Employees

112 771

Officers

Co-Founder, Chairman & CEO
Mr. Huateng Pony Ma
Pres & Exec. Director
Mr. Chi Ping Lau
Co-Founder & Chief Information Officer
Mr. Chenye Xu
Co-Founder & Advisor Emeritus
Mr. Yidan Chen
Managing Director
Mr. Weibiao Zhan
CFO & Sr. VP
Mr. Shek Hon Lo
Show More
COO and Pres of Platform & Content Group & Interactive Entertainment Group
Mr. Yuxin Ren
Sr. EVP and Pres of Technology & Engineering Group
Mr. Shan Lu
Show Less

See Also

Summary
Intrinsic value, competitors valuation, and company profile.
DCF Valuation
Stock valuation using Discount Cash Flow valuation method.
Relative Valuation
Stock valuation using valuation multiples.
Wall Street Estimates
Price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
Stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Similar Stocks
What is the Intrinsic Value of one Tencent Holdings Ltd stock?

The intrinsic value of one Tencent Holdings Ltd stock under the Base Case scenario is 421.57 HKD.

Is Tencent Holdings Ltd stock undervalued or overvalued?

Compared to the current market price of 310.2 HKD, Tencent Holdings Ltd is Undervalued by 26%.

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