Is Tencent Holdings Limited (TCEHY) Undervalued?
Based on the current stock price of $78.08 and a P/E ratio of 24.71,Tencent Holdings Limited has a PEG ratio of 1.13.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.13, TCEHY appears to be fairly valued relative to its growth rate of 21.94%.
Based on a PEG ratio of 1.09 (adjusted for dividends).
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How we analyzed TCEHY
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 24.71and dividing it by the annual growth rate of 21.94%.
PEG = 24.71 (P/E) ÷ 21.94 (Growth) = 1.13
Frequently Asked Questions about TCEHY
What is the current PEG Ratio for Tencent Holdings Limited (TCEHY)?+
The current PEG Ratio for Tencent Holdings Limited is 1.13. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is TCEHY stock undervalued right now?+
Based on the PEG ratio of 1.13, Tencent Holdings Limited appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for TCEHY?+
The PEGY ratio for Tencent Holdings Limited is 1.09. This metric accounts for dividend yield (0.73%), providing a more complete valuation picture.