Tencent HoldingsTCEHY -0.17%83 ROE % is 20.59% as of Mar. 2026, which is 19% below its 10-year median of 25.56. GuruFocus rates TCEHY with a GF Score™ of 83/100 and a GF Value™ of $67.56 (Modestly Undervalued). Among 534 Interactive Media companies, Tencent Holdings ranks better than 84.46% on this metric.
The historical rank and industry rank for Tencent Holdings's ROE % or its related term are showing as below:
TCEHY'
s ROE % Range Over the Past 10 Years
Min: 14.91 Med: 25.56 Max: 33.95
Current: 21.08
During the past 13 years, Tencent Holdings's highest ROE % was 33.95%. The lowest was 14.91%. And the median was 25.56%.
TCEHY's ROE % is ranked better than 84.46% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs TCEHY: 21.08
Tencent Holdings (OTCPK:TCEHY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Tencent Holdings ROE % Related Terms
Tencent Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Tencent Holdings's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Tencent Holdings (TCEHY) has a ROE % of 20.59% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tencent Holdings and its competitors. This is 19% below median its historical median of 25.56. Over the past decade, Tencent Holdings' ROE % has ranged from 14.91 to 33.95. According to the industry distribution chart, Tencent Holdings ranks #83 out of 534 companies in the Interactive Media industry, placing it in the top 15.5%.
Is Tencent Holdings' ROE % too high?
Tencent Holdings' current ROE % of 20.59% is 19% below median its 10-year median of 25.56. Over the past 10 years, this metric has ranged from a low of 14.91 to a high of 33.95. The Interactive Media industry median ROE % is 2.35. Tencent Holdings' value of 20.59% is 778% above this industry median. Based on the distribution chart, Tencent Holdings ranks #83 out of 534 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' ROE % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, Tencent Holdings ranks #83 out of 534 companies for ROE %. This places Tencent Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. Tencent Holdings' value of 20.59% is 778% above this benchmark. Historically, Tencent Holdings' own ROE % has ranged from 14.91 to 33.95 over the past decade. While the company's 10-year median is 25.56 vs. the industry median of 2.35, 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Holdings's current ROE % of 20.59% is 778% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tencent Holdings and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Holdings's current ROE % is 20.59%, which is 19% below median its own 10-year median of 25.56. 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 ROE % is 20.59%, which is 19% below median its 10-year median of 25.56 and 778% above the Interactive Media industry median of 2.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Tencent Holdings (TCEHY), the current ROE % is 20.59% 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:
ROE %: 20.59% (19% below median its 10-year median of 25.56)
GF Value™: $67.56 vs. price of $53.32 (21.1% below fair value)
Industry Position: 778% above the Interactive Media median (#83 of 534)
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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