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Tencent Holdings PS Ratio

: 7.71 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Tencent Holdings's share price is $64.59. Tencent Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $8.38. Hence, Tencent Holdings's PS Ratio for today is 7.71.

The historical rank and industry rank for Tencent Holdings's PS Ratio or its related term are showing as below:

OTCPK:TCEHY' s PS Ratio Range Over the Past 10 Years
Min: 6.54   Med: 10.96   Max: 72.75
Current: 7.73

6.54
72.75

During the past 13 years, Tencent Holdings's highest PS Ratio was 72.75. The lowest was 6.54. And the median was 10.96.

OTCPK:TCEHY's PS Ratio is ranked lower than
96% of the 73 Companies
in the Interactive Media industry.

( Industry Median: 3.47 vs. OTCPK:TCEHY: 7.73 )

Tencent Holdings's Revenue per Sharefor the three months ended in Jun. 2021 was $2.22. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $8.38.

Good Sign:

Tencent Holdings Ltd has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Tencent Holdings was 33.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 26.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 34.80% per year. During the past 10 years, the average Revenue per Share Growth Rate was 36.60% per year.

During the past 13 years, Tencent Holdings's highest 3-Year average Revenue per Share Growth Rate was 80.00% per year. The lowest was 26.10% per year. And the median was 43.30% per year.

Back to Basics: PS Ratio


Tencent Holdings PS Ratio Historical Data

The historical data trend for Tencent Holdings's PS Ratio 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
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.57 13.74 8.46 8.59 9.56

Tencent Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PS Ratio 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 10.20 9.75 9.56 10.02 8.98

Competitive Comparison

For the Internet Content & Information subindustry, Tencent Holdings's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution

For the Interactive Media industry and Communication Services sector, Tencent Holdings's PS Ratio distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's PS Ratio falls into.



Tencent Holdings PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Tencent Holdings's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=64.59/8.38
=7.71

Tencent Holdings's Share Price of today is $64.59.
Tencent Holdings's Revenue per Share 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 $8.38.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Tencent Holdings  (OTCPK:TCEHY) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Tencent Holdings PS Ratio Related Terms

Thank you for viewing the detailed overview of Tencent Holdings's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


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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