OPERATING COMPANY · FREE CASH FLOW TO FIRM
0700.HK
Tencent Holdings Limited · Market price HKD 433.000000 as of 2026-09-03
REVIEWED EXPLANATION
What drives the range
This free-cash-flow analysis begins with reported 2025 free cash flow of RMB 182.6 billion, reported net cash, period-end shares and an official CNY/HKD conversion rate. The base forecast grows annual free cash flow from RMB 197.2 billion to RMB 268.3 billion, uses a 9% WACC and 2.5% terminal growth, and produces HKD 478.95 per share, 10.6% above the recorded market price of HKD 433.00. The scenario range is unusually wide, from HKD 218.92 to HKD 788.30, because long-term cash-flow growth, WACC and terminal growth materially affect the terminal value. The base case indicates a possible modest discount, but the wide range makes that conclusion highly assumption-sensitive. This is scenario research, not an investment recommendation.
Method valuation-v1 · Calculated 2026-09-08 13:10 · Reviewed by hsitradenotification@gmail.com
The range is sensitive to the saved assumptions. It is not personalised advice, a forecast guarantee or an instruction to trade.