TCEHY

Potentially Undervalued

Tencent Holdings Limited — PEG Ratio Analysis

0.30

PEG Ratio

0.30

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$56.07

TTM EPS

$25.24

P/E Ratio

2.22

Growth Rate

7.4%

5-Year EPS CAGR

Sector

Communication Services

Internet Content & Information

Calculated

6/17/2026

12:47:02 PM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

0.28

25th Percentile

0.07

75th Percentile

0.86

TCEHY PEG (0.30) vs Industry Median (0.28): 8% premium

Symbol	Company	PEG	P/E	Growth	vs TCEHY
PDD	PDD Holdings Inc.	0.03	1.2	40.5%	-90%
TME	Tencent Music Entertainment Group	0.07	1.6	22.9%	-76%
SPOT	Spotify Technology S.A.	0.49	43.7	89.9%	+62%
WB	Weibo Corporation	0.86	5.6	6.5%	+186%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.