Tencent DCF Analysis
Introduction: Tencent is one of the largest and most influential companies in China, it created a super app, WeChat that is used by more than a billion users daily. With its close ties to the Chinese government, Tencent has flourished into a large company with a global presence through its multi-faceted investment ventures in areas such as Gaming, FinTech, and Cloud Services. It is the early architect of the “Ecosystem Model” which many successful companies such as Google, Apple, and Tesla have replicated. the unique thing about this business model is that they already have built out the necessary infrastructure and there are built-in customers within the super app, so there is no need for additional customer acquisition cost and any subsequent addition to the super app will have very high margins. Market: Tech Crackdown China has begun to crack down on the technology industry for many reasons, such as anti-competitive behavior and increased concerns over privacy and security. This ha...