TCEHY (Tencent Holdings) ROCE %: 19.30% (As of Mar. 2026)


TCEHY Tencent Holdings Ltd TCEHY
83 GF Score
Price $53.32
GF Value $67.55
Valuation Modestly Undervalued
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What is Tencent Holdings ROCE %?

Tencent Holdings TCEHY -0.17% 83 ROCE % is 19.30% as of Mar. 2026. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $67.55 (Modestly Undervalued).

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tencent Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was 19.30%.

Tencent Holdings  (OTCPK:TCEHY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tencent Holdings ROCE % Related Terms

Tencent Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Tencent Holdings's ROCE % 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.

Tencent Holdings ROCE % Chart

Tencent Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.79 17.85 14.45 19.29 19.61

Tencent Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial 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 18.65 18.46 19.56 18.10 19.30
TCEHY
83GF Score
Tencent Holdings Ltd TCEHY
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tencent Holdings ROCE % Calculation

Tencent Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=41274.563/( ( (244618.649 - 54515.225) + (289497.104 - 58602.766) )/ 2 )
=41274.563/( (190103.424+230894.338)/ 2 )
=41274.563/210498.881
=19.61 %

Tencent Holdings's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=44658.668/( ( (289497.104 - 58602.766) + (297643.679 - 65853.949) )/ 2 )
=44658.668/( ( 230894.338 + 231789.73 )/ 2 )
=44658.668/231342.034
=19.30 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.30% mean?
Tencent Holdings (TCEHY) has a ROCE % of 19.30% as of Mar. 2026.
Is Tencent Holdings' ROCE % too high?
Tencent Holdings' current ROCE % is 19.30%. The Interactive Media industry median ROCE % is 3.15. Tencent Holdings' value of 19.30% is 512.7% above this industry median. 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' ROCE % compare to GOOGL and META?
Tencent Holdings' ROCE % of 19.30% can be compared against companies in the Interactive Media industry. The industry median ROCE % is 3.15. Tencent Holdings' value of 19.30% is 512.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Interactive Media company?
The median ROCE % among Interactive Media companies is 3.15, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current ROCE % of 19.30% is 512.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Interactive Media industry, the median ROCE % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current ROCE % is 19.30%. 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 $67.55, compared to a current price of $53.32 — trading 21.1% below its estimated fair value. The current ROCE % is 19.30% and 512.7% above the Interactive Media industry median of 3.15. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current ROCE % is 19.30% 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 $67.55. GuruFocus considers Tencent Holdings to be Modestly Undervalued.

Key valuation signals for TCEHY:

  • ROCE %: 19.30%
  • GF Value™: $67.55 vs. price of $53.32 (21.1% below fair value)
  • GF Score™: 83/100
  • Industry Position: 512.7% above the Interactive Media median

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 Holdings Business Description

Address No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$53.32
Price
$67.55
GF Value