Tencent HoldingsTCEHY +2.57%83 EBITDA Margin % is 39.17% as of Mar. 2026, which is 17% below its 10-year median of 47.21. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $67.95 (Modestly Undervalued). Among 553 Interactive Media companies, Tencent Holdings ranks better than 90.96% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Tencent Holdings's EBITDA for the
three
months ended in Mar. 2026 was $11,165 Mil. Tencent Holdings's Revenue for the
three
months ended in Mar. 2026 was $28,505 Mil. Therefore, Tencent Holdings's EBITDA margin for the quarter that ended in Mar. 2026 was 39.17%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Tencent Holdings EBITDA Margin % Related Terms
Tencent Holdings EBITDA Margin % Historical Data
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The historical data trend for Tencent Holdings's EBITDA Margin % 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.
TCEHY vs GOOGL, META, SPOT: EBITDA Margin % Comparison
For the Internet Content & Information subindustry, Tencent Holdings's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's EBITDA Margin % 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.
Tencent Holdings (TCEHY) has a EBITDA Margin % of 39.17% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Tencent Holdings and its competitors. This is 17% below median its historical median of 47.21. Over the past decade, Tencent Holdings' EBITDA Margin % has ranged from 38.13 to 56.00. According to the industry distribution chart, Tencent Holdings ranks #50 out of 553 companies in the Interactive Media industry, placing it in the top 9%.
Is Tencent Holdings' EBITDA Margin % too high?
Tencent Holdings' current EBITDA Margin % of 39.17% is 17% below median its 10-year median of 47.21. Over the past 10 years, this metric has ranged from a low of 38.13 to a high of 56.00. The Interactive Media industry median EBITDA Margin % is 8.70. Tencent Holdings' value of 39.17% is 350.2% above this industry median. Based on the distribution chart, Tencent Holdings ranks #50 out of 553 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. 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' EBITDA Margin % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #50 out of 553 companies for EBITDA Margin %. This places Tencent Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.70. Tencent Holdings' value of 39.17% is 350.2% above this benchmark. Historically, Tencent Holdings' own EBITDA Margin % has ranged from 38.13 to 56.00 over the past decade. While the company's 10-year median is 47.21 vs. the industry median of 8.70, 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 EBITDA Margin % for an Interactive Media company?
The median EBITDA Margin % among Interactive Media companies is 8.70, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current EBITDA Margin % of 39.17% is 350.2% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median EBITDA Margin % is 8.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current EBITDA Margin % is 39.17%, which is 17% below median its own 10-year median of 47.21. 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 $67.95, compared to a current price of $55.00 — trading 19.1% below its estimated fair value. The current EBITDA Margin % is 39.17%, which is 17% below median its 10-year median of 47.21 and 350.2% above the Interactive Media industry median of 8.70. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current EBITDA Margin % is 39.17% 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 19.1% below its estimated GF Value™ of $67.95.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCEHY:
EBITDA Margin %: 39.17% (17% below median its 10-year median of 47.21)
GF Value™: $67.95 vs. price of $55.00 (19.1% below fair value)
Industry Position: 350.2% above the Interactive Media median (#50 of 553)
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 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
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