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Breakdown · 0700.HK

Tencent

WACC
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
Year CF Discount factor PV Cumulative PV
1 23.37 0.9120 21.31 21.31
2 26.87 0.8318 22.35 43.67
3 30.91 0.7586 23.45 67.11
4 35.54 0.6919 24.59 91.70
5 40.87 0.6310 25.79 117.50
6 47.00 0.5755 27.05 144.55
7 54.05 0.5249 28.37 172.92
8 62.16 0.4787 29.76 202.68
9 71.49 0.4366 31.21 233.89
10 82.21 0.3982 32.74 266.62
11 84.26 0.3632 30.60 297.22
12 86.37 0.3312 28.61 325.83
13 88.53 0.3021 26.74 352.57
14 90.74 0.2755 25.00 377.57
15 93.01 0.2513 23.37 400.95
16 95.34 0.2292 21.85 422.79
17 97.72 0.2090 20.42 443.22
18 100.16 0.1906 19.09 462.31
19 102.67 0.1738 17.85 480.16
20 105.23 0.1586 16.69 496.85
REVERSE DCF

At $385.20, the market implies a stage-1 growth rate of 11.2%.

MARKET IMPLIES
11.2%
YOUR ASSUMPTION
15.0%
DELTA
-3.8pp

If $385.20 is correct and your other inputs (WACC 9.6%, 10+10y, terminal 2.5%) hold, the market needs 0700.HK to grow cash flow at 11.2% annually for the next 10 years.