Tencent HoldingsTCEHY -0.17%83 ROA % is 11.48% as of Mar. 2026, which is 2% below its 10-year median of 11.70. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $67.56 (Modestly Undervalued). Among 568 Interactive Media companies, Tencent Holdings ranks better than 82.39% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tencent Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $33,716 Mil.
Tencent Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $293,570 Mil. Therefore, Tencent Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 11.48%.
The historical rank and industry rank for Tencent Holdings's ROA % or its related term are showing as below:
TCEHY'
s ROA % Range Over the Past 10 Years
Min: 7.23 Med: 11.7 Max: 15.49
Current: 11.71
During the past 13 years, Tencent Holdings's highest ROA % was 15.49%. The lowest was 7.23%. And the median was 11.70%.
TCEHY's ROA % is ranked better than 82.39% of 568
companies
in the Interactive Media industry
Industry Median: 0.675
vs TCEHY: 11.71
Tencent Holdings (OTCPK:TCEHY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tencent Holdings ROA % Related Terms
Tencent Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's ROA % 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.
For the Internet Content & Information subindustry, Tencent Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Tencent Holdings (TCEHY) has a ROA % of 11.48% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tencent Holdings and its competitors. This is near median its historical median of 11.70. Over the past decade, Tencent Holdings' ROA % has ranged from 7.23 to 15.49. According to the industry distribution chart, Tencent Holdings ranks #100 out of 568 companies in the Interactive Media industry, placing it in the top 17.6%.
Is Tencent Holdings' ROA % too high?
Tencent Holdings' current ROA % of 11.48% is near median its 10-year median of 11.70. Over the past 10 years, this metric has ranged from a low of 7.23 to a high of 15.49. The Interactive Media industry median ROA % is 0.68. Tencent Holdings' value of 11.48% is 1600.7% above this industry median. Based on the distribution chart, Tencent Holdings ranks #100 out of 568 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' ROA % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #100 out of 568 companies for ROA %. This places Tencent Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 0.68. Tencent Holdings' value of 11.48% is 1600.7% above this benchmark. Historically, Tencent Holdings' own ROA % has ranged from 7.23 to 15.49 over the past decade. While the company's 10-year median is 11.70 vs. the industry median of 0.68, 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 ROA % for an Interactive Media company?
The median ROA % among Interactive Media companies is 0.68, based on 568 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current ROA % of 11.48% is 1600.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median ROA % is 0.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current ROA % is 11.48%, which is near median its own 10-year median of 11.70. 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 $67.56, compared to a current price of $53.32 — trading 21.1% below its estimated fair value. The current ROA % is 11.48%, which is near median its 10-year median of 11.70 and 1600.7% above the Interactive Media industry median of 0.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current ROA % is 11.48% 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 $53.32 is trading 21.1% below its estimated GF Value™ of $67.56.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCEHY:
ROA %: 11.48% (near median its 10-year median of 11.70)
GF Value™: $67.56 vs. price of $53.32 (21.1% below fair value)
Industry Position: 1600.7% above the Interactive Media median (#100 of 568)
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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