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Tencent Holdings (MEX:TCEHY N) E10 : MXN38.19 (As of Dec. 2024)


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What is Tencent Holdings E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Tencent Holdings's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN15.712. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN38.19 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Tencent Holdings's average E10 Growth Rate was 14.50% per year. During the past 3 years, the average E10 Growth Rate was 15.00% per year. During the past 5 years, the average E10 Growth Rate was 22.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Tencent Holdings was 33.50% per year. The lowest was 15.00% per year. And the median was 27.05% per year.

As of today (2025-03-26), Tencent Holdings's current stock price is MXN1290.00. Tencent Holdings's E10 for the quarter that ended in Dec. 2024 was MXN38.19. Tencent Holdings's Shiller PE Ratio of today is 33.78.

During the past 13 years, the highest Shiller PE Ratio of Tencent Holdings was 101.14. The lowest was 17.84. And the median was 50.67.


Tencent Holdings E10 Historical Data

The historical data trend for Tencent Holdings's E10 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.

* Premium members only.

Tencent Holdings E10 Chart

Tencent Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.88 27.46 29.86 27.79 38.19

Tencent Holdings Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.79 27.93 31.50 34.81 38.19

Competitive Comparison of Tencent Holdings's E10

For the Internet Content & Information subindustry, Tencent Holdings's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Holdings's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's Shiller PE Ratio falls into.



Tencent Holdings E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Tencent Holdings's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=15.712/114.8925*114.8925
=15.712

Current CPI (Dec. 2024) = 114.8925.

Tencent Holdings Quarterly Data

per share eps CPI Adj_EPS
201503 1.791 99.900 2.060
201506 1.967 99.500 2.271
201509 2.102 100.500 2.403
201512 2.018 100.600 2.305
201603 2.568 102.200 2.887
201606 3.180 101.400 3.603
201609 3.250 102.400 3.646
201612 3.298 102.600 3.693
201703 4.157 103.200 4.628
201706 5.083 103.100 5.664
201709 5.216 104.100 5.757
201712 6.482 104.500 7.127
201803 7.003 105.300 7.641
201806 5.677 104.900 6.218
201809 6.658 106.600 7.176
201812 4.242 106.500 4.576
201903 8.219 107.700 8.768
201906 7.018 107.700 7.487
201909 5.903 109.800 6.177
201912 5.800 111.200 5.993
202003 10.016 112.300 10.247
202006 11.203 110.400 11.659
202009 12.858 111.700 13.225
202012 18.617 111.500 19.183
202103 15.437 112.662 15.743
202106 13.592 111.769 13.972
202109 12.975 112.215 13.285
202112 31.728 113.108 32.229
202203 7.544 114.335 7.581
202206 5.754 114.558 5.771
202209 11.760 115.339 11.715
202212 30.602 115.116 30.543
202303 6.903 115.116 6.890
202306 6.452 114.558 6.471
202309 8.955 115.339 8.920
202312 6.685 114.781 6.691
202403 10.108 115.227 10.079
202406 12.611 114.781 12.623
202409 15.705 115.785 15.584
202412 15.712 114.893 15.712

Add all the adjusted EPS together and divide 10 will get our e10.


Tencent Holdings  (MEX:TCEHY N) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Tencent Holdings's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=1290.00/38.19
=33.78

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Tencent Holdings was 101.14. The lowest was 17.84. And the median was 50.67.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Tencent Holdings E10 Related Terms

Thank you for viewing the detailed overview of Tencent Holdings's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Tencent Holdings Business Description

Address
No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app. WeChat is deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading companies including PDD, Kuaishou, and Epic Games.

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