(TME) Tencent Music Entertainment - Ratings and Ratios
Exchange: NYSE •
Country: China •
Currency: USD •
Type: Common Stock •
ISIN: US88034P1093
Music Streaming, Karaoke, Live Streaming, Digital Albums, Audio Platform
Dividends
| Dividend Yield | 0.98% |
| Yield on Cost 5y | 1.08% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 100.0% |
| Payout Ratio | 3.1% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 47.9% |
| Value at Risk 5%th | 67.5% |
| Relative Tail Risk | -14.33% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.01 |
| Alpha | 41.97 |
| CAGR/Max DD | 0.87 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.501 |
| Beta | 0.700 |
| Beta Downside | 0.835 |
| Drawdowns 3y | |
|---|---|
| Max DD | 38.37% |
| Mean DD | 13.81% |
| Median DD | 12.74% |
Description: TME Tencent Music Entertainment December 04, 2025
Tencent Music Entertainment Group (NYSE:TME) runs China’s leading online music platforms-including QQ Music, Kugou, Kuwo, and the karaoke app WeSing-offering streaming, long-form audio (audiobooks, podcasts), music-oriented video, and live-streaming services. The ecosystem also monetizes through artist-related merchandise, digital album sales, content licensing, concert ticketing, and advertising across its social-entertainment hubs. TME is headquartered in Shenzhen and operates as a subsidiary of Tencent Holdings.
Key recent metrics: 2023 total revenue rose ~13% YoY to CNY 23.4 billion, driven by a 19% jump in ad revenue as brands increase spend on short-form video ads; monthly active users (MAU) across all platforms reached ~800 million, with a 7% increase in paid-subscriber conversion rate to ~12% of MAU. The Chinese digital entertainment market is expanding at ~10% CAGR, supported by rising broadband penetration and higher disposable income among Gen-Z consumers, but remains sensitive to regulatory scrutiny of online content.
For a deeper dive into TME’s valuation and risk profile, the ValueRay research page offers a concise, data-focused overview.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (10.81b TTM) > 0 and > 6% of Revenue (6% = 1.90b TTM) |
| FCFTA 0.10 (>2.0%) and ΔFCFTA -1.51pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 49.07% (prev 69.17%; Δ -20.10pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 10.32b <= Net Income 10.81b (YES >=105%, WARN >=100%) |
| Net Debt (-7.39b) to EBITDA (10.48b) ratio: -0.70 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.08 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.56b) change vs 12m ago -0.52% (target <= -2.0% for YES) |
| Gross Margin 43.90% (prev 41.00%; Δ 2.90pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 33.48% (prev 32.90%; Δ 0.58pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 103.0 (EBITDA TTM 10.48b / Interest Expense TTM 70.5m) >= 6 (WARN >= 3) |
Altman Z'' 5.27
| (A) 0.15 = (Total Current Assets 29.92b - Total Current Liabilities 14.35b) / Total Assets 104.87b |
| (B) 0.26 = Retained Earnings (Balance) 27.19b / Total Assets 104.87b |
| (C) 0.08 = EBIT TTM 7.26b / Avg Total Assets 94.74b |
| (D) 2.79 = Book Value of Equity 54.33b / Total Liabilities 19.44b |
| Total Rating: 5.27 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.88
| 1. Piotroski 5.50pt |
| 2. FCF Yield 5.17% |
| 3. FCF Margin 32.54% |
| 4. Debt/Equity 0.05 |
| 5. Debt/Ebitda -0.70 |
| 6. ROIC - WACC (= -1.18)% |
| 7. RoE 14.05% |
| 8. Rev. Trend 36.20% |
| 9. EPS Trend 37.70% |
What is the price of TME shares?
As of December 05, 2025, the stock is trading at USD 18.72 with a total of 2,939,426 shares traded.
Over the past week, the price has changed by +1.46%, over one month by -16.84%, over three months by -24.12% and over the past year by +53.57%.
Over the past week, the price has changed by +1.46%, over one month by -16.84%, over three months by -24.12% and over the past year by +53.57%.
Is TME a buy, sell or hold?
Tencent Music Entertainment has received a consensus analysts rating of 4.56.
Therefore, it is recommended to buy TME.
- Strong Buy: 20
- Buy: 10
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the TME price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 27 | 44.4% |
| Analysts Target Price | 27 | 44.4% |
| ValueRay Target Price | 20 | 6.9% |
TME Fundamental Data Overview December 05, 2025
Market Cap CNY = 218.08b (30.84b USD * 7.0718 USD.CNY)
P/E Trailing = 18.6837
P/E Forward = 18.4843
P/S = 0.9722
P/B = 2.4335
P/EG = 0.7438
Beta = 0.446
Revenue TTM = 31.72b CNY
EBIT TTM = 7.26b CNY
EBITDA TTM = 10.48b CNY
Long Term Debt = 3.53b CNY (from longTermDebt, last quarter)
Short Term Debt = 104.0m CNY (from shortTermDebt, last quarter)
Debt = 3.87b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.39b CNY (from netDebt column, last quarter)
Enterprise Value = 199.62b CNY (218.08b + Debt 3.87b - CCE 22.32b)
Interest Coverage Ratio = 103.0 (Ebit TTM 7.26b / Interest Expense TTM 70.5m)
FCF Yield = 5.17% (FCF TTM 10.32b / Enterprise Value 199.62b)
FCF Margin = 32.54% (FCF TTM 10.32b / Revenue TTM 31.72b)
Net Margin = 34.08% (Net Income TTM 10.81b / Revenue TTM 31.72b)
Gross Margin = 43.90% ((Revenue TTM 31.72b - Cost of Revenue TTM 17.79b) / Revenue TTM)
Gross Margin QoQ = 43.51% (prev 44.41%)
Tobins Q-Ratio = 1.90 (Enterprise Value 199.62b / Total Assets 104.87b)
Interest Expense / Debt = 0.12% (Interest Expense 4.47m / Debt 3.87b)
Taxrate = 17.74% (477.0m / 2.69b)
NOPAT = 5.97b (EBIT 7.26b * (1 - 17.74%))
Current Ratio = 2.08 (Total Current Assets 29.92b / Total Current Liabilities 14.35b)
Debt / Equity = 0.05 (Debt 3.87b / totalStockholderEquity, last quarter 82.75b)
Debt / EBITDA = -0.70 (Net Debt -7.39b / EBITDA 10.48b)
Debt / FCF = -0.72 (Net Debt -7.39b / FCF TTM 10.32b)
Total Stockholder Equity = 76.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.31% (Net Income 10.81b / Total Assets 104.87b)
RoE = 14.05% (Net Income TTM 10.81b / Total Stockholder Equity 76.93b)
RoCE = 9.02% (EBIT 7.26b / Capital Employed (Equity 76.93b + L.T.Debt 3.53b))
RoIC = 7.27% (NOPAT 5.97b / Invested Capital 82.10b)
WACC = 8.45% (E(218.08b)/V(221.94b) * Re(8.60%) + D(3.87b)/V(221.94b) * Rd(0.12%) * (1-Tc(0.18)))
Discount Rate = 8.60% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.43%
[DCF Debug] Terminal Value 79.12% ; FCFE base≈10.03b ; Y1≈11.94b ; Y5≈18.74b
Fair Price DCF = 407.0 (DCF Value 288.36b / Shares Outstanding 708.4m; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: 37.70 | EPS CAGR: 34.98% | SUE: 0.39 | # QB: 0
Revenue Correlation: 36.20 | Revenue CAGR: 2.88% | SUE: 0.03 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.59 | Chg30d=-0.017 | Revisions Net=-3 | Analysts=3
EPS next Year (2026-12-31): EPS=6.89 | Chg30d=-0.285 | Revisions Net=-15 | Growth EPS=+9.9% | Growth Revenue=+12.1%
P/E Trailing = 18.6837
P/E Forward = 18.4843
P/S = 0.9722
P/B = 2.4335
P/EG = 0.7438
Beta = 0.446
Revenue TTM = 31.72b CNY
EBIT TTM = 7.26b CNY
EBITDA TTM = 10.48b CNY
Long Term Debt = 3.53b CNY (from longTermDebt, last quarter)
Short Term Debt = 104.0m CNY (from shortTermDebt, last quarter)
Debt = 3.87b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.39b CNY (from netDebt column, last quarter)
Enterprise Value = 199.62b CNY (218.08b + Debt 3.87b - CCE 22.32b)
Interest Coverage Ratio = 103.0 (Ebit TTM 7.26b / Interest Expense TTM 70.5m)
FCF Yield = 5.17% (FCF TTM 10.32b / Enterprise Value 199.62b)
FCF Margin = 32.54% (FCF TTM 10.32b / Revenue TTM 31.72b)
Net Margin = 34.08% (Net Income TTM 10.81b / Revenue TTM 31.72b)
Gross Margin = 43.90% ((Revenue TTM 31.72b - Cost of Revenue TTM 17.79b) / Revenue TTM)
Gross Margin QoQ = 43.51% (prev 44.41%)
Tobins Q-Ratio = 1.90 (Enterprise Value 199.62b / Total Assets 104.87b)
Interest Expense / Debt = 0.12% (Interest Expense 4.47m / Debt 3.87b)
Taxrate = 17.74% (477.0m / 2.69b)
NOPAT = 5.97b (EBIT 7.26b * (1 - 17.74%))
Current Ratio = 2.08 (Total Current Assets 29.92b / Total Current Liabilities 14.35b)
Debt / Equity = 0.05 (Debt 3.87b / totalStockholderEquity, last quarter 82.75b)
Debt / EBITDA = -0.70 (Net Debt -7.39b / EBITDA 10.48b)
Debt / FCF = -0.72 (Net Debt -7.39b / FCF TTM 10.32b)
Total Stockholder Equity = 76.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.31% (Net Income 10.81b / Total Assets 104.87b)
RoE = 14.05% (Net Income TTM 10.81b / Total Stockholder Equity 76.93b)
RoCE = 9.02% (EBIT 7.26b / Capital Employed (Equity 76.93b + L.T.Debt 3.53b))
RoIC = 7.27% (NOPAT 5.97b / Invested Capital 82.10b)
WACC = 8.45% (E(218.08b)/V(221.94b) * Re(8.60%) + D(3.87b)/V(221.94b) * Rd(0.12%) * (1-Tc(0.18)))
Discount Rate = 8.60% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.43%
[DCF Debug] Terminal Value 79.12% ; FCFE base≈10.03b ; Y1≈11.94b ; Y5≈18.74b
Fair Price DCF = 407.0 (DCF Value 288.36b / Shares Outstanding 708.4m; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: 37.70 | EPS CAGR: 34.98% | SUE: 0.39 | # QB: 0
Revenue Correlation: 36.20 | Revenue CAGR: 2.88% | SUE: 0.03 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.59 | Chg30d=-0.017 | Revisions Net=-3 | Analysts=3
EPS next Year (2026-12-31): EPS=6.89 | Chg30d=-0.285 | Revisions Net=-15 | Growth EPS=+9.9% | Growth Revenue=+12.1%
Additional Sources for TME Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle