TCEHY (Tencent Holdings) EBIT: $42,509 Mil (TTM As of Mar. 2026)


TCEHY Tencent Holdings Ltd TCEHY
83 GF Score
Price $55.00
GF Value $65.01
Valuation Modestly Undervalued
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What is Tencent Holdings EBIT?

Tencent Holdings TCEHY +2.57% 83 EBIT is $42,509 Mil as of Mar. 2026. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $65.01 (Modestly Undervalued).

Tencent Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $11,165 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $42,509 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tencent Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 13.08%. Tencent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 168.21%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Tencent Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.51%.


Tencent Holdings  (OTCPK:TCEHY) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Tencent Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=38375.532 * ( 1 - 19.71% )/( (237576.813 + 233504.157)/ 2 )
=30811.7146428/235540.485
=13.08 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=289497.104 - 25979.1 - ( 60590.783 - max(0, 58602.766 - 84543.957+60590.783))
=237576.813

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=297643.679 - 36127.16 - ( 67250.04 - max(0, 65853.949 - 93866.311+67250.04))
=233504.157

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Tencent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=44658.668/( ( (25715.016 + max(-32747.616, 0)) + (27384.687 + max(-30502.169, 0)) )/ 2 )
=44658.668/( ( 25715.016 + 27384.687 )/ 2 )
=44658.668/26549.8515
=168.21 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7089.107 + 75.25 + 10378.378) - (25979.1 + 0 + 24311.251)
=-32747.616

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8432.263 + 84.445 + 18099.563) - (36127.16 + 0 + 20991.28)
=-30502.169

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Tencent Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=42508.782/499368.258
=8.51 %

* 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.


Tencent Holdings EBIT Related Terms


Tencent Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Tencent Holdings's EBIT 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.

Tencent Holdings EBIT Chart

Tencent Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40,189.66 31,586.27 24,258.28 34,877.42 41,274.56

Tencent Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 9,283.93 9,879.12 11,017.62 10,447.38 11,164.67

TCEHY vs GOOGL, META, SPOT: EBIT Comparison

For the Internet Content & Information subindustry, Tencent Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's EV-to-EBIT falls into.


TCEHY
83GF Score
Tencent Holdings Ltd TCEHY
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Tencent Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $42,509 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $42,509 Mil mean?
Tencent Holdings (TCEHY) has a EBIT of $42,509 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Tencent Holdings.
Is Tencent Holdings' EBIT too high?
Tencent Holdings' current EBIT is $42,509 Mil. Overall, Tencent Holdings has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Holdings' EBIT compare to GOOGL and META?
Tencent Holdings' EBIT of $42,509 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Interactive Media company?
A good EBIT depends on the Interactive Media industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Tencent Holdings. Tencent Holdings's current EBIT is $42,509 Mil. 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 (TCEHY) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.01, compared to a current price of $55.00 — trading 15.4% below its estimated fair value. The current EBIT is $42,509 Mil. Tencent Holdings' overall GF Score™ is 83/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current EBIT is $42,509 Mil 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 (TCEHY) Overvalued in 2026?

Based on GuruFocus' analysis, Tencent Holdings stock appears to be undervalued. The current stock price of $55.00 is trading 15.4% below its estimated GF Value™ of $65.01. GuruFocus considers Tencent Holdings to be Modestly Undervalued.

Key valuation signals for TCEHY:

  • EBIT: $42,509 Mil
  • GF Value™: $65.01 vs. price of $55.00 (15.4% below fair value)
  • GF Score™: 83/100

No single metric tells the full story. See the TCEHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tencent Holdings Business Description

Address No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
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.
83GF Score

Get the complete analysis for TCEHY

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.00
Price
$65.01
GF Value