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Why Tencent Holdings Limited (HKG:700) Could Be Worth Watching

Simply Wall St · 6d ago

Let's talk about the popular Tencent Holdings Limited (HKG:700). The company's shares saw significant share price movement during recent months on the SEHK, rising to highs of HK$678 and falling to the lows of HK$597. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Tencent Holdings' current trading price of HK$599 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Tencent Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What's The Opportunity In Tencent Holdings?

Great news for investors – Tencent Holdings is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is HK$893.93, but it is currently trading at HK$599 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Tencent Holdings’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

See our latest analysis for Tencent Holdings

What kind of growth will Tencent Holdings generate?

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SEHK:700 Earnings and Revenue Growth January 1st 2026

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 47% over the next couple of years, the future seems bright for Tencent Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since 700 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 700 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 700. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

It can be quite valuable to consider what analysts expect for Tencent Holdings from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

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