Stock AnalizTencent Music Entertainment Group TME
Broadcasting · IPO 2018 · data as of November 13, 2026
Tencent Music Entertainment Group (TME) is a consumer discretionary company listed in the US with a market value of about $14.2B. In the twelve months to June 30, 2026 it had revenue of $5.1B and net income of $1.3B, a net margin of 26.3%.
Its overall Stock Analiz score is 3.4 out of 5 (good). The strongest part is value (5/5); the weakest is track record (2/5).
Key numbers: a P/E of 11.0, a price to free cash flow of 9.3, 5-year revenue growth of 1% a year, a 5-year average ROIC of 8%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 36% above the current price.
Score: 3.4 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Checks not passed
- 3-year revenue growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- ROE above 15%
- Interest covered more than 5 times
- 20% to 100% of free cash flow returned to shareholders
- Dividend 3 years in a row
- Stock-based pay below 5% of revenue
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.1B | $4.9B | $3.9B | $3.9B | $4.1B | $4.9B | $4.5B | $3.7B | $2.8B | $1.7B | $628M |
| Net income | $1.3B | $1.7B | $910M | $692M | $533M | $477M | $636M | $572M | $267M | $204M | $12M |
| Free cash flow | $1.5B | $1.4B | $1.4B | $1.0B | $1.1B | $800M | $731M | $877M | $800M | $373M | $120M |
| EPS (diluted) | $0.86 | $1.07 | $0.58 | $0.44 | $0.34 | $0.30 | $0.40 | $0.36 | $0.17 | $0.13 | $0.01 |
| Net margin | 26.3% | 33.6% | 23.4% | 17.7% | 13.0% | 9.7% | 14.2% | 15.7% | 9.7% | 12.1% | 1.9% |
| ROIC | — | — | 10.5% | 8.5% | 7.3% | 6.1% | 7.4% | 9.3% | 4.9% | 5.0% | 0.4% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is Tencent Music Entertainment’s P/E ratio?
About 11.0, based on the last twelve months of diluted earnings per share (forward P/E about 8.9).
Is Tencent Music Entertainment stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 36% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Tencent Music Entertainment pay a dividend?
Yes. The dividend yield is about 2.60%, and it has paid dividends for 1 years in our data.
Is Tencent Music Entertainment a good stock to buy?
We do not give buy or sell advice. Tencent Music Entertainment scores 3.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.