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Tencent Holdings Peter Lynch Fair Value

: $73.90 (As of Today)
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Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Tencent Holdings's PEG is 1. Tencent Holdings's 5-Year EBITDA Growth Rate is 25. Tencent Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $2.96. Therefore, the Peter Lynch Fair Value for today is $73.90.

As of today (2021-10-23), Tencent Holdings's share price is $64.59. Tencent Holdings's Peter Lynch fair value is $73.90. Therefore, Tencent Holdings's Price to Peter Lynch Fair Value Ratio for today is 0.87.


The historical rank and industry rank for Tencent Holdings's Peter Lynch Fair Value or its related term are showing as below:

OTCPK:TCEHY' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.86   Med: 1.54   Max: 1.86
Current: 0.87

0.86
1.86

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Tencent Holdings was 1.86. The lowest was 0.86. And the median was 1.54.


OTCPK:TCEHY's Price-to-Peter-Lynch-Fair-Value is ranked lower than
99.99% of the 5 Companies
in the Interactive Media industry.

( Industry Median: 1.79 vs. OTCPK:TCEHY: 0.87 )

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Tencent Holdings Peter Lynch Fair Value Historical Data

The historical data trend for Tencent Holdings's Peter Lynch Fair Value 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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.08 27.91 30.69 34.92 59.84

Tencent Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Peter Lynch Fair Value 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 Premium Member Only Premium Member Only Premium Member Only 37.93 46.25 59.84 69.96 73.91

Competitive Comparison

For the Internet Content & Information subindustry, Tencent Holdings's Peter Lynch Fair Value, along with its competitors' market caps and Peter Lynch Fair Value 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 Peter Lynch Fair Value Distribution

For the Interactive Media industry and Communication Services sector, Tencent Holdings's Peter Lynch Fair Value distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's Peter Lynch Fair Value falls into.



Tencent Holdings Peter Lynch Fair Value Calculation

Tencent Holdings's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year EBITDA Growth Rate*EPS without NRI (TTM)
=1* 25 *2.956
=73.90

Tencent Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.96.


* 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.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Tencent Holdings  (OTCPK:TCEHY) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 25 instead of 15 in this case.

Tencent Holdings's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=64.59/73.90
=0.87

* 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 Peter Lynch Fair Value Related Terms

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Tencent Holdings Business Description

Tencent Holdings logo
Industry
Address
No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent is a Chinese Internet giant with businesses and investments in a wide variety of Internet services and contents. Major services include communication and social networking (Weixin/Weixin and QQ), online PC and mobile games, content (news, videos, music, comics, and literature), utilities (email, app store, mobile security, and mobile browser), cloud services, and financial technology. Tenpay in Weixin/Weixin and QQ is a payment solution that enables closed-loop transactions in Tencent's ecosystems and has been adopted by many third-party partners and offline merchants. Tencent has an aggregate monthly active user base of less than 600 million for QQ and over 1.2 billion for Weixin/Weixin.

Tencent Holdings Headlines

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