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Tencent (TCTZF.US) Price Target 2026/2027: 70% Downside – Overvalued?

61,50
Analysis framework by , founder of TradeDesk · Data: EODHD, official filings (SEC) · Updated
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Tencent Price Target 2026: Analysts See 72% Downside

The average price target for Tencent is $17.00. This price target represents the analysts' view of the stock price over the next 12 months. The stock appears overvalued, because the price target is lower than the current price. It is -72,36% above the target, and analysts expect the price to fall over the next 12 months. Even if the stock may be overvalued, price momentum can last longer than expected. That is why it is important to keep an eye on the stock and its momentum on an ongoing basis. WallStreetBuys helps you with the technical analysis and keeps you up to date on the development.

Is Tencent overvalued or undervalued?

Tencent is currently overvalued with a gap of 72.4% relative to the price target.


The current price is $61.50, which places Tencent in the overvalued category. The stock is considered undervalued when the price is below $15.30, and overvalued when the price exceeds $18.70.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Tencent, the fair value range lies between $15.30 and $18.70.


See the full price target analysis for Tencent →

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About Tencent – Internet Content & Information

Tencent Holdings er et kæmpe kinesisk selskab, der tjener penge på flere måder, primært gennem digitale tjenester og reklamer. De driver for eksempel online spil og sociale netværk, som er deres helt store indtægtskilder. De er især kendt for deres FinTech-løsninger og cloud-tjenester, men de sælger også online reklamer og laver film og tv-programmer. Tencent udvikler og driver også online spil og leverer IT-tjenester. Virksomheden blev grundlagt i 1998 og har hovedkontor i Shenzhen, Kina. Tencent Holdings opererer både i Kina og internationalt. Read more about the company

Key Figures for Tencent

$ 563B Market cap
$ 768B Revenue
Internet Content & Information Industry
17.76 P/E
0.73 P/S
3.20 P/B
USA Listed on exchange
tencent.com Website
Kommunikation Sector

What kind of stock is Tencent?

Dividend stock Growth stock Value stock Quality stock

Tencent is classified as a dividend stock and growth stock and value stock and quality stock. This means the stock combines several attractive traits, including a dividend of 7.6%, strong financial health (Piotroski 7/9).

Score Overview for Tencent

💰 Value Score 74/100 (High)
⭐ Quality Score 88/100 (Very High)
🚀 Momentum Score 33/100 (Low)
📊 Total Score 65/100

📈 Valuation

Tencent trades at a P/E ratio of 17.8, which is close to the market average. The forward P/E is 13.4 (25% lower), which suggests the market expects rising earnings. The P/S ratio is 0.7 (low — potentially undervalued relative to revenue). The P/B ratio is 3.2. The PEG ratio is 1.38.

💵 Profitability & Growth

Tencent has a profit margin of 30.6% (excellent) and an operating margin of 34.3%. Return on equity (ROE) is 20.5% — excellent return on equity. Return on assets (ROA) is 7.9%. The latest quarterly earnings grew 22.9% year over year.

🏦 Financial Health

The Piotroski score is 7 out of 9 — good financial health. Altman Z2 is 4.59 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 74.7% — low debt, a solid balance sheet.

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Tencent Dividend 2026: 7.6% Dividend Yield

Dividend Key Figures for Tencent in 2026

Dividend yield
7.64%
Dividend per share
0.68 USD
Payout ratio
24.6%
Low
Dividend growth (4 years)
+193.3%
Avg. annual dividend (3 years)
1.65 USD

When does Tencent pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
May 19, 2026
Next dividend payment
May 31, 2019
Latest payment date
June 1, 2026

How much does Tencent pay in dividends?

Tencent pays dividends to its shareholders. The most recently paid dividend was 0.68 USD per share, which corresponds to a dividend yield of 7.64%. Over the last 4 years, the annual dividend has grown by 193.3%, which shows positive dividend growth.

The payout ratio is 24.6%, which is low. This suggests the company prioritizes reinvesting in growth over dividend payments. There is good room to raise the dividend in the future.

Historical Dividend Payments for Tencent

We have registered dividend payments for Tencent since 2020-05-18. In that period the stock has paid a dividend 8 times, most recently on 2026-05-19. However, the stock does not qualify as a stable or sporadic dividend stock, because the dividend payments have been inconsistent in recent years.

Ex-datePayment dateAmountCurrencyPeriod
2026-05-192026-06-010.68USDUnknown period
2024-05-202024-05-310.44USDUnknown period
2023-05-222023-06-052.40USDUnknown period
2023-05-19N/A0.31USDUnknown period
2022-05-232022-06-061.60USDUnknown period
2022-05-20N/A0.20USDUnknown period
2021-05-252021-06-070.21USDUnknown period
2020-05-182020-05-290.15USDUnknown period
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When Does Tencent Report Earnings – Next Date: 8/12/2026

The next earnings report from Tencent is scheduled for August 12, 2026, after the market closes. This report covers the second quarter (Q2), which ended on June 30, 2026.



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Technical Analysis of Tencent 2026 – Signal: Hold

Overall Technical Signal: Hold

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.

Trend Analysis of Tencent Holdings Limited

Tencent Holdings Limited is in a short-term uptrend. The price of $61.50 is 3.6% above the 20-day average ($59.38). Medium term, the picture is positive: the price is 6.2% above the 50-day average ($57.90). Long term, the stock is 9.5% below the 200-day average ($67.93), which signals a long-term downtrend.

Death Cross: The 50-day average (57.90) is below the 200-day average (67.93), which is a classic bearish signal for Tencent Holdings Limited.

Is Tencent Holdings Limited overbought or oversold?

Tencent Holdings Limited has an RSI of 56.1. The stock shows positive momentum in the upper part of the neutral zone.

MACD Analysis for Tencent Holdings Limited

Daily MACD: MACD is positive (0.897), which means the short-term trend is bullish (the 12-day EMA is above the 26-day EMA). MACD is above the signal line (0.511) by 0.386, which confirms rising momentum in the uptrend.

Weekly MACD: MACD5 is negative (-2.939), which indicates a broader bearish long-term trend. MACD5 is above the signal line (-3.625) by 0.686, which suggests the negative long-term momentum is fading – a bigger trend reversal could be ahead.

Overall MACD assessment: The daily and weekly MACD give conflicting signals. The short-term trend is bullish, but the long-term trend is still bearish. Weekly momentum is rising, though, which could signal an upcoming trend reversal.

Risk Profile for Tencent Holdings Limited

Tencent Holdings Limited has an annual standard deviation of 40.8%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Tencent Holdings Limited

Trend: Neutral/mixed.

MACD trend (zero line): Daily bullish (0.897). Weekly bearish (-2.939).

MACD momentum (signal): Daily rising. Weekly rising.

RSI: 56.1 – neutral.

Technical signal: Hold

The signals are mixed – trend and MACD point in different directions. Wait until MACD crosses the zero line in the direction of the trend before acting.

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Frequently Asked Questions About Tencent stock in 2026

Should you buy Tencent stock now?
The technical signal for Tencent is currently NEUTRAL. Tencent trades at $61.50 as of 8/6/2026. The overall technical signal is: Hold. The technical analysis shows the following: MACD is positive (bullish trend) at 0.897 with rising momentum (signal: 0.511); RSI is at 56.1 (neutral zone); the stock is in a short-term uptrend (price above the 20-day average); the analyst price target of $17.00 is 72.4% below the current price. This is a technical observation based on current data, not investment advice.
What is the price target for Tencent stock?
The average analyst price target for Tencent is $17.00. The current price is $61.50, which gives a downside of 72.4%. Based on this, the stock is considered overvalued. The fair value range (±10% of the price target) is between $15.30 and $18.70.
Is Tencent a dividend stock?
Yes, Tencent is a dividend stock with a dividend yield of 7.64%. The latest dividend was $0.68 per share. The latest ex-dividend date (traded without the dividend) was 5/19/2026. The payout ratio is 24.6%, which is considered sustainable. The next dividend payment is scheduled for 5/31/2019.
When does Tencent pay a dividend in 2026?
Tencent pays its next dividend on 5/31/2019. The latest dividend was $0.68 per share with an ex-dividend date of 5/19/2026. The dividend yield is 7.64%. The payout ratio of 24.6% points to a sustainable dividend with room to grow.
What is the risk of Tencent stock?
Tencent is rated as a stock with moderate risk. the annual standard deviation is 40.8%, which classifies the stock as moderate risk.
Is Tencent overvalued?
Yes, Tencent is considered overvalued based on the analyst price target (72.4% above the price target). Tencent has the following valuation ratios: a P/E ratio of 17.8 (moderately valued), a P/S ratio of 0.7, a P/B ratio of 3.2. The analyst price target suggests that the stock is overvalued by 72.4%.
Is Tencent overbought?
No, Tencent is not overbought. RSI is at 56.1 (neutral zone). The technical indicators show: RSI is at 56.1 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 3.6% above the 20-day average (short-term uptrend). In addition, MACD is positive with rising momentum (bullish).
When is the next Tencent earnings report?
Tencent reports its next earnings on August 12, 2026. The stock currently trades at $61.50. With a P/E ratio of 17.8, the market will be watching closely whether earnings meet expectations.
Is Tencent shorted?
There is currently no registered short interest for Tencent, or the data is not available.
Are insiders buying Tencent stock?
There is currently no registered insider trading for Tencent.
Is Tencent a good stock?
Based on our total score, Tencent is rated as a good stock with a total score of 65 out of 100. The stock scores above average on value, quality and momentum – it is among the top 35% in our database. The score is made up of Value: 74/100, Quality: 88/100, Momentum: 33/100. In addition: the price target is 72.4% below the current price; a dividend of 7.64%; technical signal: Hold. Whether Tencent is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Tencent stock?
The outlook for Tencent based on current data: the average analyst price target is $17.00 (-72.4%); the next earnings report is due on 8/12/2026, which can move the price; the P/E ratio is 17.8 (moderate). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Tencent stock rising?
Tencent is rising right now. The technical indicators show: the price is 3.6% above the 20-day average; MACD is positive with rising momentum (bullish signal). For the latest context, see our technical analysis, insider section and news overview above.
How high can Tencent go?
The average analyst price target for Tencent is $17.00, which is 72.4% below the current price of $61.50. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Tencent fall?
We lack enough history to give a specific floor for Tencent. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Tencent do?
Tencent Holdings er et kæmpe kinesisk selskab, der tjener penge på flere måder, primært gennem digitale tjenester og reklamer. De driver for eksempel online spil og sociale netværk, som er deres helt store indtægtskilder. De er især kendt for deres FinTech-løsninger og cloud-... The company belongs to the Kommunikation sector, more specifically the Internet Content & Information industry, is headquartered in USA, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Tencent as an investment.
Did Tencent raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Tencent. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history and the news overview above.
Is Tencent making money or losing money?
Yes, Tencent is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 30.6% — which is excellent. The operating margin (profit before interest and taxes) is 34.3%. At a P/E ratio of 17.8, you currently pay 17.8 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Tencent go bankrupt?
The bankruptcy risk of Tencent is rated as low. Altman Z2 (a model for assessing financial distress) is 4.59 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 7 — which is strong. Debt relative to equity is 75% (moderate). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Tencent have a lot of debt?
No, Tencent has low debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 75%. For the kommunikation sector, anything below 80% counts as low debt. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Tencent service its debt? Can service its debt without problems — the interest coverage ratio (how many times earnings can cover interest payments) is 22.2x, and net debt equals 0.6 years of earnings (EBITDA).
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