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Tencent HoldingsTCTZF +3.64%79 Debt-to-EBITDA is 1.32 as of Mar. 2026, which is 8% above its 10-year median of 1.22. GuruFocus rates TCTZF with a GF Score™ of 79/100 and a GF Value™ of $68.92 (Modestly Undervalued). Among 305 Interactive Media companies, Tencent Holdings ranks worse than 60.66% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Tencent Holdings's Debt-to-EBITDA or its related term are showing as below:
TCTZF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.03 Med: 1.22 Max: 1.65
Current: 1.14
During the past 13 years, the highest Debt-to-EBITDA Ratio of Tencent Holdings was 1.65. The lowest was 1.03. And the median was 1.22.
TCTZF's Debt-to-EBITDA is ranked worse than 60.66% of 305
companies
in the Interactive Media industry
Industry Median: 0.67
vs TCTZF: 1.14
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Tencent Holdings Debt-to-EBITDA Related Terms
Tencent Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TCTZF vs GOOGL, META, SPOT: Debt-to-EBITDA Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tencent Holdings Debt-to-EBITDA vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Tencent Holdings (TCTZF) has a Debt-to-EBITDA of 1.32 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tencent Holdings. This is near median its historical median of 1.22. Over the past decade, Tencent Holdings' Debt-to-EBITDA has ranged from 1.03 to 1.65. According to the industry distribution chart, Tencent Holdings ranks #185 out of 305 companies in the Interactive Media industry, placing it in the top 60.7%.
Is Tencent Holdings' Debt-to-EBITDA too high?
Tencent Holdings' current Debt-to-EBITDA of 1.32 is near median its 10-year median of 1.22. Over the past 10 years, this metric has ranged from a low of 1.03 to a high of 1.65. The Interactive Media industry median Debt-to-EBITDA is 0.67. Tencent Holdings' value of 1.32 is 97% above this industry median. Based on the distribution chart, Tencent Holdings ranks #185 out of 305 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Tencent Holdings has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Holdings' Debt-to-EBITDA compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #185 out of 305 companies for Debt-to-EBITDA. This places Tencent Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 0.67. Tencent Holdings' value of 1.32 is 97% above this benchmark. Historically, Tencent Holdings' own Debt-to-EBITDA has ranged from 1.03 to 1.65 over the past decade. While the company's 10-year median is 1.22 vs. the industry median of 0.67, Tencent Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Interactive Media company?
The median Debt-to-EBITDA among Interactive Media companies is 0.67, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current Debt-to-EBITDA of 1.32 is 97% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tencent Holdings. For the Interactive Media industry, the median Debt-to-EBITDA is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current Debt-to-EBITDA is 1.32, which is near median its own 10-year median of 1.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tencent Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tencent Holdings (TCTZF) is currently considered Modestly Undervalued. The stock's GF Value™ is $68.92, compared to a current price of $59.30 — trading 14% below its estimated fair value. The current Debt-to-EBITDA is 1.32, which is near median its 10-year median of 1.22 and 97% above the Interactive Media industry median of 0.67. Tencent Holdings' overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Tencent Holdings (TCTZF), the current Debt-to-EBITDA is 1.32 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tencent Holdings (TCTZF) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Holdings stock appears to be undervalued.
The current stock price of $59.30 is trading 14% below its estimated GF Value™ of $68.92.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCTZF:
Debt-to-EBITDA: 1.32 (near median its 10-year median of 1.22)
GF Value™: $68.92 vs. price of $59.30 (14% below fair value)
Industry Position: 97% above the Interactive Media median (#185 of 305)
No single metric tells the full story. See the TCTZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tencent is the world's largest game publisher, with top-grossing mobile hits like Honor of Kings and Peacekeeper Elite and a steady pipeline of new titles. It also operates WeChat-China's super-app with roughly 1.3 billion users-embedded in daily life for messaging, short video, mini programs, payments, and shopping. Beyond its own platforms, Tencent is a prolific strategic investor, holding stakes in leading internet companies such as PDD, Kuaishou, and Xiaohongshu.
79GF Score
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