Tencent Holdings Limited (TCEHY) DCF Valuation
Two independent models estimate Tencent Holdings Limited's fair value between $36.08 (conservative case) and $53.42 (analyst consensus).
What would today's price require?
$59.24 is justified only if free cash flow grows about +11.2% a year for the next decade — faster than the company has actually grown.
Current Price
$59.24
Fair-Value Range
$36.08 – $53.42
Market-Implied Growth
+11.2%/yr
vs +2.7% 5Y actual
TCEHY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $22.0B · 9.03B shares · net debt $34.3B
Estimated Fair Value
$36.08
-39.1% vs $59.24
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $59.24; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $45.76 | $48.30 | $51.30 | $54.91 | $59.31 |
| 9.0% | $38.77 | $40.51 | $42.51 | $44.85 | $47.61 |
| 10.0% | $33.44 | $34.68 | $36.08 | $37.68 | $39.53 |
| 11.0% | $29.26 | $30.16 | $31.18 | $32.31 | $33.61 |
| 12.0% | $25.88 | $26.56 | $27.32 | $28.15 | $29.09 |
About Tencent Holdings Limited
Tencent Holdings Limited is an investment holding company that specializes in providing a wide array of value-added services (VAS) and online advertising solutions, operating both within Mainland China and across international markets. The company's diverse business operations are structured into several key segments: Value-Added Services (VAS), Online Advertising, FinTech and Business Services, and other various ventures. Tencent's offerings encompass popular online games, extensive social networking platforms, cutting-edge FinTech and cloud computing solutions, and comprehensive digital advertising services. Beyond these core areas, the company is also actively involved in the production, investment, and distribution of films and television programs for external clients, alongside managing copyright licensing, merchandise sales, and related activities. Further expanding its technological and entertainment footprint, Tencent develops proprietary software, operates its significant online gaming portfolio, and delivers services in information technology, system integration, and asset management. Its cultural ventures extend to online literature and digital music entertainment platforms. Established in 1998, Tencent Holdings maintains its headquarters in Shenzhen, People's Republic of China.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- CEO
- Huateng Ma