Tencent HoldingsTCTZF +4.17%79 Return-on-Tangible-Equity is 25.77% as of Mar. 2026, which is 25% below its 10-year median of 34.47. GuruFocus rates TCTZF with a GF Score™ of 79/100 and a GF Value™ of $68.17 (Modestly Undervalued). Among 491 Interactive Media companies, Tencent Holdings ranks better than 79.23% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tencent Holdings's annualized net income for the quarter that ended in Mar. 2026 was $33,716 Mil. Tencent Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $130,823 Mil. Therefore, Tencent Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.77%.
The historical rank and industry rank for Tencent Holdings's Return-on-Tangible-Equity or its related term are showing as below:
TCTZF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 20.3 Med: 34.47 Max: 43.9
Current: 26.59
During the past 13 years, Tencent Holdings's highest Return-on-Tangible-Equity was 43.90%. The lowest was 20.30%. And the median was 34.47%.
TCTZF's Return-on-Tangible-Equity is ranked better than 79.23% of 491
companies
in the Interactive Media industry
Industry Median: 5.8
vs TCTZF: 26.59
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tencent Holdings Return-on-Tangible-Equity Related Terms
Tencent Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's Return-on-Tangible-Equity 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-Equity Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.77% mean?
Tencent Holdings (TCTZF) has a Return-on-Tangible-Equity of 25.77% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tencent Holdings and its competitors. This is 25% below median its historical median of 34.47. Over the past decade, Tencent Holdings' Return-on-Tangible-Equity has ranged from 20.30 to 43.90. According to the industry distribution chart, Tencent Holdings ranks #102 out of 491 companies in the Interactive Media industry, placing it in the top 20.8%.
Is Tencent Holdings' Return-on-Tangible-Equity too high?
Tencent Holdings' current Return-on-Tangible-Equity of 25.77% is 25% below median its 10-year median of 34.47. Over the past 10 years, this metric has ranged from a low of 20.30 to a high of 43.90. The Interactive Media industry median Return-on-Tangible-Equity is 5.80. Tencent Holdings' value of 25.77% is 344.3% above this industry median. Based on the distribution chart, Tencent Holdings ranks #102 out of 491 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 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Holdings' Return-on-Tangible-Equity compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #102 out of 491 companies for Return-on-Tangible-Equity. This places Tencent Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.80. Tencent Holdings' value of 25.77% is 344.3% above this benchmark. Historically, Tencent Holdings' own Return-on-Tangible-Equity has ranged from 20.30 to 43.90 over the past decade. While the company's 10-year median is 34.47 vs. the industry median of 5.80, 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-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.80, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current Return-on-Tangible-Equity of 25.77% is 344.3% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current Return-on-Tangible-Equity is 25.77%, which is 25% below median its own 10-year median of 34.47. 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 $68.17, compared to a current price of $57.90 — trading 15.1% below its estimated fair value. The current Return-on-Tangible-Equity is 25.77%, which is 25% below median its 10-year median of 34.47 and 344.3% above the Interactive Media industry median of 5.80. Tencent Holdings' overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tencent Holdings (TCTZF), the current Return-on-Tangible-Equity is 25.77% 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 $57.90 is trading 15.1% below its estimated GF Value™ of $68.17.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCTZF:
Return-on-Tangible-Equity: 25.77% (25% below median its 10-year median of 34.47)
GF Value™: $68.17 vs. price of $57.90 (15.1% below fair value)
Industry Position: 344.3% above the Interactive Media median (#102 of 491)
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.
79GF Score
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