Tencent HoldingsTCEHY +2.42%83 Net Margin % is 29.57% as of Mar. 2026, which is 0% below its 10-year median of 29.65. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $65.01 (Modestly Undervalued). Among 553 Interactive Media companies, Tencent Holdings ranks better than 91.14% on this metric.
The historical rank and industry rank for Tencent Holdings's Net Margin % or its related term are showing as below:
TCEHY'
s Net Margin % Range Over the Past 10 Years
Min: 18.92 Med: 29.65 Max: 40.14
Current: 30.59
TCEHY's Net Margin % is ranked better than 91.14% of 553
companies
in the Interactive Media industry
Industry Median: 1.65
vs TCEHY: 30.59
Tencent Holdings (OTCPK:TCEHY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Tencent Holdings Net Margin % Related Terms
Tencent Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's Net 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: Net Margin % Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Net 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 Net Margin % of 29.57% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tencent Holdings and its competitors. This is near median its historical median of 29.65. Over the past decade, Tencent Holdings' Net Margin % has ranged from 18.92 to 40.14. According to the industry distribution chart, Tencent Holdings ranks #49 out of 553 companies in the Interactive Media industry, placing it in the top 8.9%.
Is Tencent Holdings' Net Margin % too high?
Tencent Holdings' current Net Margin % of 29.57% is near median its 10-year median of 29.65. Over the past 10 years, this metric has ranged from a low of 18.92 to a high of 40.14. The Interactive Media industry median Net Margin % is 1.65. Tencent Holdings' value of 29.57% is 1692.1% above this industry median. Based on the distribution chart, Tencent Holdings ranks #49 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' Net Margin % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #49 out of 553 companies for Net Margin %. This places Tencent Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.65. Tencent Holdings' value of 29.57% is 1692.1% above this benchmark. Historically, Tencent Holdings' own Net Margin % has ranged from 18.92 to 40.14 over the past decade. While the company's 10-year median is 29.65 vs. the industry median of 1.65, 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 Net Margin % for an Interactive Media company?
The median Net Margin % among Interactive Media companies is 1.65, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current Net Margin % of 29.57% is 1692.1% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median Net Margin % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current Net Margin % is 29.57%, which is near median its own 10-year median of 29.65. 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 $54.92 — trading 15.5% below its estimated fair value. The current Net Margin % is 29.57%, which is near median its 10-year median of 29.65 and 1692.1% above the Interactive Media industry median of 1.65. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current Net Margin % is 29.57% 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 $54.92 is trading 15.5% below its estimated GF Value™ of $65.01.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCEHY:
Net Margin %: 29.57% (near median its 10-year median of 29.65)
GF Value™: $65.01 vs. price of $54.92 (15.5% below fair value)
Industry Position: 1692.1% above the Interactive Media median (#49 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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