- Tencent is a leading software technology and internet company based in China and the country's biggest company based on market capitalization.
- Tencent has enjoyed amazing growth in the past few years, with revenues growing from $47.3 billion in 2018 to $86.8 billion in 2021 implying a CAGR of >20%.
- Tencent shareholders have suffered multiple headwinds in the past 12 month and the stock price is down more than 50% from ATH in February 2021.
- I suggest investors focus on the company's long-term potential and anchor their valuation on numbers and fundamentals.
- I use the Residual Earnings framework to value Tencent and calculate a fair per share price of $58.51.
For further details see:
Tencent: Buy And Focus On The Long Term