Tencent HoldingsTCEHY +0.19%83 Interest Coverage is 22.20 as of Mar. 2026, which is 36% above its 10-year median of 16.35. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $67.56 (Modestly Undervalued). Among 316 Interactive Media companies, Tencent Holdings ranks worse than 61.71% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tencent Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $9,594 Mil. Tencent Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-432 Mil.
Tencent Holdings's interest coverage for the quarter that ended in Mar. 2026 was 22.20.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tencent Holdings's Interest Coverage or its related term are showing as below:
TCEHY'
s Interest Coverage Range Over the Past 10 Years
Min: 11.41 Med: 16.35 Max: 23.2
Current: 21.15
TCEHY's Interest Coverage is ranked worse than 61.71% of 316
companies
in the Interactive Media industry
Industry Median: 38.305
vs TCEHY: 21.15
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tencent Holdings Interest Coverage Related Terms
Tencent Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TCEHY vs GOOGL, META, SPOT: Interest Coverage Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 22.20 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tencent Holdings and its competitors. This is 36% above median its historical median of 16.35. Over the past decade, Tencent Holdings' Interest Coverage has ranged from 11.41 to 23.20. According to the industry distribution chart, Tencent Holdings ranks #195 out of 316 companies in the Interactive Media industry, placing it in the top 61.7%.
Is Tencent Holdings' Interest Coverage too high?
Tencent Holdings' current Interest Coverage of 22.20 is 36% above median its 10-year median of 16.35. Over the past 10 years, this metric has ranged from a low of 11.41 to a high of 23.20. The Interactive Media industry median Interest Coverage is 38.31. Tencent Holdings' value of 22.20 is 42% below this industry median. Based on the distribution chart, Tencent Holdings ranks #195 out of 316 companies in the Interactive Media industry, which is below the industry midpoint. 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' Interest Coverage compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #195 out of 316 companies for Interest Coverage. This places Tencent Holdings in the lower half of its industry. The industry median Interest Coverage is 38.31. Tencent Holdings' value of 22.20 is 42% below this benchmark. Historically, Tencent Holdings' own Interest Coverage has ranged from 11.41 to 23.20 over the past decade. While the company's 10-year median is 16.35 vs. the industry median of 38.31, Tencent Holdings has consistently been below 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 Interest Coverage for an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current Interest Coverage of 22.20 is 42% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current Interest Coverage is 22.20, which is 36% above median its own 10-year median of 16.35. 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 $67.56, compared to a current price of $53.42 — trading 20.9% below its estimated fair value. The current Interest Coverage is 22.20, which is 36% above median its 10-year median of 16.35 and 42% below the Interactive Media industry median of 38.31. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current Interest Coverage is 22.20 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 $53.42 is trading 20.9% below its estimated GF Value™ of $67.56.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCEHY:
Interest Coverage: 22.20 (36% above median its 10-year median of 16.35)
GF Value™: $67.56 vs. price of $53.42 (20.9% below fair value)
Industry Position: 42% below the Interactive Media median (#195 of 316)
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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