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Tencent HoldingsTCTZF -1.40%80 Return-on-Tangible-Asset is 12.94% as of Mar. 2026, which is 3% below its 10-year median of 13.31. GuruFocus rates TCTZF with a GF Score™ of 80/100 and a GF Value™ of $68.57 (Modestly Undervalued). Among 569 Interactive Media companies, Tencent Holdings ranks better than 81.37% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Tencent Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $33,716 Mil. Tencent Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $260,652 Mil. Therefore, Tencent Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 12.94%.
The historical rank and industry rank for Tencent Holdings's Return-on-Tangible-Asset or its related term are showing as below:
TCTZF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.29 Med: 13.31 Max: 17.91
Current: 13.24
During the past 13 years, Tencent Holdings's highest Return-on-Tangible-Asset was 17.91%. The lowest was 8.29%. And the median was 13.31%.
TCTZF's Return-on-Tangible-Asset is ranked better than 81.37% of 569
companies
in the Interactive Media industry
Industry Median: 0.69
vs TCTZF: 13.24
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Tencent Holdings Return-on-Tangible-Asset Related Terms
Tencent Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's Return-on-Tangible-Asset 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.
TCTZF vs GOOGL, META, SPOT: Return-on-Tangible-Asset Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 12.94% mean?
Tencent Holdings (TCTZF) has a Return-on-Tangible-Asset of 12.94% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tencent Holdings and its competitors. This is near median its historical median of 13.31. Over the past decade, Tencent Holdings' Return-on-Tangible-Asset has ranged from 8.29 to 17.91. According to the industry distribution chart, Tencent Holdings ranks #106 out of 569 companies in the Interactive Media industry, placing it in the top 18.6%.
Is Tencent Holdings' Return-on-Tangible-Asset too high?
Tencent Holdings' current Return-on-Tangible-Asset of 12.94% is near median its 10-year median of 13.31. Over the past 10 years, this metric has ranged from a low of 8.29 to a high of 17.91. The Interactive Media industry median Return-on-Tangible-Asset is 0.69. Tencent Holdings' value of 12.94% is 1775.4% above this industry median. Based on the distribution chart, Tencent Holdings ranks #106 out of 569 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 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Holdings' Return-on-Tangible-Asset compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #106 out of 569 companies for Return-on-Tangible-Asset. This places Tencent Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.69. Tencent Holdings' value of 12.94% is 1775.4% above this benchmark. Historically, Tencent Holdings' own Return-on-Tangible-Asset has ranged from 8.29 to 17.91 over the past decade. While the company's 10-year median is 13.31 vs. the industry median of 0.69, 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 Return-on-Tangible-Asset for an Interactive Media company?
The median Return-on-Tangible-Asset among Interactive Media companies is 0.69, based on 569 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current Return-on-Tangible-Asset of 12.94% is 1775.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Asset is 0.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current Return-on-Tangible-Asset is 12.94%, which is near median its own 10-year median of 13.31. 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 (TCTZF) is currently considered Modestly Undervalued. The stock's GF Value™ is $68.57, compared to a current price of $60.06 — trading 12.4% below its estimated fair value. The current Return-on-Tangible-Asset is 12.94%, which is near median its 10-year median of 13.31 and 1775.4% above the Interactive Media industry median of 0.69. Tencent Holdings' overall GF Score™ is 80/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Tencent Holdings (TCTZF), the current Return-on-Tangible-Asset is 12.94% 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 (TCTZF) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Holdings stock appears to be undervalued.
The current stock price of $60.06 is trading 12.4% below its estimated GF Value™ of $68.57.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCTZF:
Return-on-Tangible-Asset: 12.94% (near median its 10-year median of 13.31)
GF Value™: $68.57 vs. price of $60.06 (12.4% below fair value)
Industry Position: 1775.4% above the Interactive Media median (#106 of 569)
No single metric tells the full story. See the TCTZF 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.
80GF Score
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