Overview Dividends

(TME) Tencent Music Entertainment - Ratings and Ratios

Exchange: NYSE • Country: China • Currency: USD • Type: Common Stock • ISIN: US88034P1093

Streaming, Karaoke, Live, Audio, Merchandise

TME EPS (Earnings per Share)

EPS Growth (3Y CAGR): -57.08%
EPS Trend (3Y Correlation): -14.6%

TME Revenue

Revenue Growth (3Y CAGR): 5.09%
Revenue Trend (3Y Correlation): 37.9%

Risk via 10d forecast
Volatility	51.6%
Value at Risk 5%th	72.7%

Reward
Sharpe Ratio	1.16
Alpha Jensen	57.00

Character
Hurst Exponent	0.435
Beta	0.499

Drawdowns 3y
Max DD	38.37%
Mean DD	13.24%

Description: TME Tencent Music Entertainment September 29, 2025

Tencent Music Entertainment Group (NYSE:TME) runs a suite of online music platforms in China-including QQ Music, Kugou Music, Kuwo Music, and the karaoke app WeSing-delivering streaming, personalized discovery, long-form audio (audiobooks, podcasts, talk shows), music-oriented video, and live-streaming experiences through dedicated “Live” tabs and the Lazy Audio platform.

The company monetizes its ecosystem via multiple channels: premium subscriptions, advertising, digital album sales, content licensing, artist-related merchandise, and live-performance ticketing. It also offers artist management services and leverages its social features to drive higher engagement and higher-margin commerce.

From a recent earnings release (FY2023), TME reported revenue of roughly RMB 17.2 billion, with monthly active users (MAU) surpassing 800 million and a subscription conversion rate hovering around 12%. Live-streaming revenue grew about 30% year-over-year, reflecting strong consumer appetite for interactive entertainment post-pandemic.

Key sector drivers include China’s expanding digital-entertainment spend, projected to rise at a ~10% CAGR through 2028, and the gradual easing of regulatory scrutiny after the 2021 crackdown on online content, which should support stable growth for licensed music platforms. Competitive pressure remains high from NetEase Cloud Music and emerging short-video players, making user-engagement metrics and exclusive artist deals critical differentiators.

For a deeper, data-driven assessment of TME’s valuation assumptions and scenario analysis, you may find ValueRay’s platform useful for extending your research.

TME Stock Overview

Market Cap in USD	33,159m
Sub-Industry	Movies & Entertainment
IPO / Inception	2018-12-12
Return 12m vs S&P 500	50.2%
Analyst Rating	4.56 of 5

TME Dividends

Dividend Yield	0.95%
Yield on Cost 5y	1.13%
Yield CAGR 5y	0.00%
Payout Consistency	100.0%
Payout Ratio	4.3%

TME Growth Ratios

CAGR	54.45%
CAGR/Max DD Calmar Ratio	1.42
CAGR/Mean DD Pain Ratio	4.11
Current Volume	23587.1k
Average Volume	3887.4k

Piotroski VR‑10 (Strict, 0-10) 5.5

Net Income (10.24b TTM) > 0 and > 6% of Revenue (6% = 1.82b TTM)

FCFTA 0.08 (>2.0%) and ΔFCFTA -2.62pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 47.51% (prev 64.30%; Δ -16.79pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.08 (>3.0%) and CFO 8.80b <= Net Income 10.24b (YES >=105%, WARN >=100%)

Net Debt (-4.96b) to EBITDA (9.82b) ratio: -0.50 <= 3.0 (WARN <= 3.5)

Current Ratio 1.87 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (1.55b) change vs 12m ago -1.14% (target <= -2.0% for YES)

Gross Margin 43.72% (prev 39.30%; Δ 4.42pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 31.82% (prev 33.24%; Δ -1.42pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 55.84 (EBITDA TTM 9.82b / Interest Expense TTM 163.0m) >= 6 (WARN >= 3)

Altman Z'' 5.00

(A) 0.13 = (Total Current Assets 30.88b - Total Current Liabilities 16.50b) / Total Assets 107.87b

(B) 0.23 = Retained Earnings (Balance) 25.04b / Total Assets 107.87b

(D) 2.60 = Book Value of Equity 55.90b / Total Liabilities 21.50b

Total Rating: 5.00 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 70.59

1. Piotroski 5.50pt = 0.50

2. FCF Yield 4.00% = 2.00

3. FCF Margin 29.08% = 7.27

4. Debt/Equity 0.07 = 2.50

5. Debt/Ebitda -0.50 = 2.50

6. ROIC - WACC (= 2.02)% = 2.53

7. RoE 14.20% = 1.18

8. Rev. Trend 37.94% = 2.85

9. EPS Trend -14.59% = -0.73

What is the price of TME shares?

As of November 14, 2025, the stock is trading at USD 19.01 with a total of 23,587,115 shares traded.
Over the past week, the price has changed by -15.32%, over one month by -18.03%, over three months by -25.13% and over the past year by +74.08%.

Is Tencent Music Entertainment a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Tencent Music Entertainment (NYSE:TME) is currently (November 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 70.59 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of TME is around 20.18 USD . This means that TME is currently overvalued and has a potential downside of 6.15%.

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	28.3	48.6%
Analysts Target Price	28.3	48.6%
ValueRay Target Price	22.3	17.5%

TME Fundamental Data Overview November 13, 2025

Market Cap CNY = 236.08b (33.16b USD * 7.1197 USD.CNY)
P/E Trailing = 22.5543
P/E Forward = 21.3675
P/S = 1.0954
P/B = 2.8188
P/EG = 0.8605
Beta = 0.446
Revenue TTM = 30.27b CNY
EBIT TTM = 9.10b CNY
EBITDA TTM = 9.82b CNY
Long Term Debt = 3.56b CNY (from longTermDebt, last quarter)
Short Term Debt = 2.25b CNY (from shortTermDebt, last quarter)
Debt = 6.04b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.96b CNY (from netDebt column, last quarter)
Enterprise Value = 219.93b CNY (236.08b + Debt 6.04b - CCE 22.20b)
Interest Coverage Ratio = 55.84 (Ebit TTM 9.10b / Interest Expense TTM 163.0m)
FCF Yield = 4.00% (FCF TTM 8.80b / Enterprise Value 219.93b)
FCF Margin = 29.08% (FCF TTM 8.80b / Revenue TTM 30.27b)
Net Margin = 33.83% (Net Income TTM 10.24b / Revenue TTM 30.27b)
Gross Margin = 43.72% ((Revenue TTM 30.27b - Cost of Revenue TTM 17.04b) / Revenue TTM)
Gross Margin QoQ = 44.41% (prev 44.07%)
Tobins Q-Ratio = 2.04 (Enterprise Value 219.93b / Total Assets 107.87b)
Interest Expense / Debt = 0.20% (Interest Expense 12.0m / Debt 6.04b)
Taxrate = 17.27% (515.0m / 2.98b)
NOPAT = 7.53b (EBIT 9.10b * (1 - 17.27%))
Current Ratio = 1.87 (Total Current Assets 30.88b / Total Current Liabilities 16.50b)
Debt / Equity = 0.07 (Debt 6.04b / totalStockholderEquity, last quarter 83.88b)
Debt / EBITDA = -0.50 (Net Debt -4.96b / EBITDA 9.82b)
Debt / FCF = -0.56 (Net Debt -4.96b / FCF TTM 8.80b)
Total Stockholder Equity = 72.12b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.49% (Net Income 10.24b / Total Assets 107.87b)
RoE = 14.20% (Net Income TTM 10.24b / Total Stockholder Equity 72.12b)
RoCE = 12.03% (EBIT 9.10b / Capital Employed (Equity 72.12b + L.T.Debt 3.56b))
RoIC = 9.68% (NOPAT 7.53b / Invested Capital 77.80b)
WACC = 7.66% (E(236.08b)/V(242.13b) * Re(7.85%) + D(6.04b)/V(242.13b) * Rd(0.20%) * (1-Tc(0.17)))
Discount Rate = 7.85% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -0.68%
[DCF Debug] Terminal Value 80.93% ; FCFE base≈8.83b ; Y1≈10.51b ; Y5≈16.50b
Fair Price DCF = 398.5 (DCF Value 282.30b / Shares Outstanding 708.4m; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: -14.59 | EPS CAGR: -57.08% | SUE: -4.0 | # QB: 0
Revenue Correlation: 37.94 | Revenue CAGR: 5.09% | SUE: 0.06 | # QB: 0

Additional Sources for TME Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle