Tencent Holding Ltd.

Tencent Holdings offers value-added services, online advertising, fintech, and business services globally. It operates through four segments: VAS, Online Advertising, FinTech, and Business Services. Its consumers business provides communication, digital content, fintech services, and tools like network security management. The enterprise business offers marketing solutions and cloud services for various industries. The company also has an innovation business that develops AI and next-generation technologies. Founded in 1998, Tencent is headquartered in Shenzhen, China.

Overview

Sector

Internet Content

Target Price

37.2 USD

Current Price

75.0 USD

Potential

-50%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is 0.68 and it is lower than the sector mean.
The company has high returns. ROIC (19.70%) is higher than the sector mean (10.83%).
EV/EBIT (20.00) is lower than the sector mean.
Strong EBITDA Margin of 46.12%.

Weaknesses

With a depreciation Potential of -50.15%, based on our fundamental analysis, it suggests the stock may be overvalued.

Key Financial Data

Indicator	Value
PER	25.2
EV/EBITDA	16.7
Price/Free Cash Flow'	30.1
ROIC	19.7%
Net Debt/EBITDA	0.7