Tencent HoldingsTCTZF -0.49%80 ROC (Joel Greenblatt) % is 168.21% as of Mar. 2026, which is 35% below its 10-year median of 258.94. GuruFocus rates TCTZF with a GF Score™ of 80/100 and a GF Value™ of $68.41 (Modestly Undervalued). Among 549 Interactive Media companies, Tencent Holdings ranks better than 76.14% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Tencent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 168.21%.
The historical rank and industry rank for Tencent Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
TCTZF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 184.04 Med: 258.94 Max: 411.76
Current: 184.04
During the past 13 years, Tencent Holdings's highest ROC (Joel Greenblatt) % was 411.76%. The lowest was 184.04%. And the median was 258.94%.
TCTZF's ROC (Joel Greenblatt) % is ranked better than 76.14% of 549
companies
in the Interactive Media industry
Industry Median: 17.28
vs TCTZF: 184.04
Tencent Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -8.20% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Tencent Holdings ROC (Joel Greenblatt) % Related Terms
Tencent Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Tencent Holdings's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Internet Content & Information subindustry, Tencent Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 168.21% mean?
Tencent Holdings (TCTZF) has a ROC (Joel Greenblatt) % of 168.21% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tencent Holdings and its competitors. This is 35% below median its historical median of 258.94. Over the past decade, Tencent Holdings' ROC (Joel Greenblatt) % has ranged from 184.04 to 411.76. According to the industry distribution chart, Tencent Holdings ranks #131 out of 549 companies in the Interactive Media industry, placing it in the top 23.9%.
Is Tencent Holdings' ROC (Joel Greenblatt) % too high?
Tencent Holdings' current ROC (Joel Greenblatt) % of 168.21% is 35% below median its 10-year median of 258.94. Over the past 10 years, this metric has ranged from a low of 184.04 to a high of 411.76. The Interactive Media industry median ROC (Joel Greenblatt) % is 17.28. Tencent Holdings' value of 168.21% is 873.4% above this industry median. Based on the distribution chart, Tencent Holdings ranks #131 out of 549 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' ROC (Joel Greenblatt) % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #131 out of 549 companies for ROC (Joel Greenblatt) %. This places Tencent Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 17.28. Tencent Holdings' value of 168.21% is 873.4% above this benchmark. Historically, Tencent Holdings' own ROC (Joel Greenblatt) % has ranged from 184.04 to 411.76 over the past decade. While the company's 10-year median is 258.94 vs. the industry median of 17.28, 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 ROC (Joel Greenblatt) % for an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 17.28, based on 549 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current ROC (Joel Greenblatt) % of 168.21% is 873.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 17.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current ROC (Joel Greenblatt) % is 168.21%, which is 35% below median its own 10-year median of 258.94. 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 $68.41, compared to a current price of $59.35 — trading 13.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 168.21%, which is 35% below median its 10-year median of 258.94 and 873.4% above the Interactive Media industry median of 17.28. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Tencent Holdings (TCTZF), the current ROC (Joel Greenblatt) % is 168.21% 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 $59.35 is trading 13.2% below its estimated GF Value™ of $68.41.
GuruFocus considers Tencent Holdings to be Modestly Undervalued.
Key valuation signals for TCTZF:
ROC (Joel Greenblatt) %: 168.21% (35% below median its 10-year median of 258.94)
GF Value™: $68.41 vs. price of $59.35 (13.2% below fair value)
Industry Position: 873.4% above the Interactive Media median (#131 of 549)
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.
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