(TME) Tencent Music Entertainment - Overview

Sector: Communication Services | Industry: Internet Content & Information | Exchange: NYSE (USA) | Market Cap: 14.834m USD | Total Return: -44.8% in 12m

Music Streaming, Online Karaoke, Live Streaming, Long-form Audio
Total Rating 36
Safety 82
Buy Signal -0.37
Internet Content & Information
Industry Rotation: -19.5
Market Cap: 14.8B
Avg Turnover: 79.3M
Risk 3d forecast
Volatility49.1%
VaR 5th Pctl7.35%
VaR vs Median-10.3%
Reward TTM
Sharpe Ratio-1.11
Rel. Str. IBD0.6
Rel. Str. Peer Group1.6
Character TTM
Beta1.091
Beta Downside1.423
Hurst Exponent0.472
Drawdowns 3y
Max DD67.01%
CAGR/Max DD0.13
CAGR/Mean DD0.49
EPS (Earnings per Share) EPS (Earnings per Share) of TME over the last years for every Quarter: "2021-03": 0.69, "2021-06": 0.66, "2021-09": 0.61, "2021-12": 0.5, "2022-03": 0.54, "2022-06": 0.63, "2022-09": 0.86, "2022-12": 0.91, "2023-03": 0.89, "2023-06": 0.97, "2023-09": 0.89, "2023-12": 1, "2024-03": 1.09, "2024-06": 1.19, "2024-09": 1.01, "2024-12": 1.26, "2025-03": 1.37, "2025-06": 1.66, "2025-09": 1.54, "2025-12": 1.6, "2026-03": 1.46,
EPS CAGR: 24.65%
EPS Trend: 98.5%
Last SUE: 0.54
Qual. Beats: 0
Revenue Revenue of TME over the last years for every Quarter: 2021-03: 7824, 2021-06: 8008, 2021-09: 7805, 2021-12: 7607, 2022-03: 6644, 2022-06: 1044.178519, 2022-09: 7365, 2022-12: 7425, 2023-03: 7004, 2023-06: 7286, 2023-09: 6569, 2023-12: 6893, 2024-03: 6768, 2024-06: 7160, 2024-09: 7015, 2024-12: 7458, 2025-03: 7356, 2025-06: 8442, 2025-09: 8463, 2025-12: 7744.591, 2026-03: 7847.250428,
Rev. CAGR: 5.66%
Rev. Trend: 80.0%
Last SUE: -0.02
Qual. Beats: 0

Warnings

No concerns identified

Tailwinds

No distinct edge detected

Description: TME Tencent Music Entertainment

Tencent Music Entertainment Group (TME) is the leading digital music provider in China, operating a multi-platform ecosystem that includes QQ Music, Kugou Music, Kuwo Music, and the karaoke application WeSing. The company generates revenue through a diversified model consisting of paid music subscriptions, advertising, sub-licensing, and social entertainment services such as virtual gifting during live streams.

The business leverages a freemium model common in the global streaming industry, transitioning users from ad-supported access to premium subscription tiers. Unlike many Western counterparts, TME integrates social networking and long-form audio-including podcasts and audiobooks-to increase user retention and per-user monetization across its integrated platforms.

You can find further fundamental analysis and valuation metrics on ValueRay to assist in your evaluation of the company.

Headlines to Watch Out For
  • Paying subscriber growth offsets decline in social entertainment revenue streams
  • Expansion of long-form audio and advertising inventory improves gross margins
  • Regulatory shifts in China impact live streaming monetization and user engagement
  • Strategic content licensing costs influence overall operating profitability and cash flow
  • Macroeconomic conditions in China dictate consumer discretionary spending on digital entertainment
Piotroski VR‑10 (Strict) 6.0
Net Income: 8.54b TTM > 0 and > 6% of Revenue
FCF/TA: 0.07 > 0.02 and ΔFCF/TA -3.75 > 1.0
NWC/Revenue: 55.32% < 20% (prev 53.63%; Δ 1.70% < -1%)
CFO/TA 0.10 > 3% & CFO 10.00b > Net Income 8.54b
Net Debt (-21.83b) to EBITDA (13.20b): -1.65 < 3
Current Ratio: 2.09 > 1.5 & < 3
Outstanding Shares: last quarter (1.56b) vs 12m ago 0.59% < -2%
Gross Margin: 57.00% > 18% (prev 0.43%; Δ 5.66k% > 0.5%)
Asset Turnover: 32.90% > 50% (prev 29.56%; Δ 3.34% > 0%)
Interest Coverage Ratio: 72.53 > 6 (EBITDA TTM 13.20b / Interest Expense TTM 146.2m)
Altman Z'' 4.96
A: 0.18 (Total Current Assets 34.54b - Total Current Liabilities 16.56b) / Total Assets 99.48b
B: 0.29 (Retained Earnings 28.54b / Total Assets 99.48b)
C: 0.11 (EBIT TTM 10.60b / Avg Total Assets 98.78b)
D: 2.02 (Book Value of Equity 45.63b / Total Liabilities 22.64b)
Altman-Z'' Score: 4.96 = AAA
Beneish M -3.13
DSRI: 1.06 (Receivables 3.81b/3.20b, Revenue 32.50b/28.99b)
GMI: 0.76 (GM 57.00% / 43.11%)
AQI: 1.00 (AQ_t 0.64 / AQ_t-1 0.64)
SGI: 1.12 (Revenue 32.50b / 28.99b)
TATA: -0.01 (NI 8.54b - CFO 10.00b) / TA 99.48b)
Beneish M-Score: -3.13 (Cap -4..+1) = AA
What is the price of TME shares? As of May 21, 2026, the stock is trading at USD 9.15 with a total of 17,784,834 shares traded.
Over the past week, the price has changed by +2.35%, over one month by -9.50%, over three months by -38.19% and over the past year by -44.77%.
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.
  • StrongBuy: 20
  • Buy: 10
  • Hold: 2
  • Sell: 0
  • StrongSell: 0
What are the forecasts/targets for the TME price?
Analysts Target Price 15.9 73.4%
Tencent Music Entertainment (TME) - Fundamental Data Overview as of 20 May 2026
Market Cap CNY = 100.89b (14.83b USD * 6.8014 USD.CNY)
P/E Trailing = 10.9157
P/E Forward = 12.6422
P/S = 0.4436
P/B = 1.359
P/EG = 1.8873
Revenue TTM = 32.50b CNY
EBIT TTM = 10.60b CNY
EBITDA TTM = 13.20b CNY
Long Term Debt = 3.50b CNY (from longTermDebt, last fiscal year)
Short Term Debt = 110.6m CNY (from shortTermDebt, last quarter)
Debt = 4.82b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -21.83b CNY (recalculated: Debt 4.82b - CCE 26.66b)
Enterprise Value = 79.06b CNY (100.89b + Debt 4.82b - CCE 26.66b)
Interest Coverage Ratio = 72.53 (Ebit TTM 10.60b / Interest Expense TTM 146.2m)
EV/FCF = 12.12x (Enterprise Value 79.06b / FCF TTM 6.52b)
FCF Yield = 8.25% (FCF TTM 6.52b / Enterprise Value 79.06b)
FCF Margin = 20.08% (FCF TTM 6.52b / Revenue TTM 32.50b)
Net Margin = 26.29% (Net Income TTM 8.54b / Revenue TTM 32.50b)
Gross Margin = 57.00% ((Revenue TTM 32.50b - Cost of Revenue TTM 13.97b) / Revenue TTM)
Gross Margin QoQ = 44.91% (prev none%)
Tobins Q-Ratio = 0.79 (Enterprise Value 79.06b / Total Assets 99.48b)
Interest Expense / Debt = 0.95% (Interest Expense 45.7m / Debt 4.82b)
Taxrate = 17.62% (454.2m / 2.58b)
NOPAT = 8.74b (EBIT 10.60b * (1 - 17.62%))
Current Ratio = 2.09 (Total Current Assets 34.54b / Total Current Liabilities 16.56b)
Debt / Equity = 0.07 (Debt 4.82b / totalStockholderEquity, last quarter 74.06b)
Debt / EBITDA = -1.65 (Net Debt -21.83b / EBITDA 13.20b)
Debt / FCF = -3.35 (Net Debt -21.83b / FCF TTM 6.52b)
Total Stockholder Equity = 80.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.65% (Net Income 8.54b / Total Assets 99.48b)
RoE = 10.64% (Net Income TTM 8.54b / Total Stockholder Equity 80.26b)
RoCE = 12.66% (EBIT 10.60b / Capital Employed (Equity 80.26b + L.T.Debt 3.50b))
RoIC = 10.09% (NOPAT 8.74b / Invested Capital 86.55b)
WACC = 9.41% (E(100.89b)/V(105.71b) * Re(9.82%) + D(4.82b)/V(105.71b) * Rd(0.95%) * (1-Tc(0.18)))
Discount Rate = 9.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: -0.48%
[DCF] Terminal Value 74.98% ; FCFF base≈7.96b ; Y1≈8.74b ; Y5≈11.18b
[DCF] Fair Price = 217.1 (EV 152.91b - Net Debt -21.83b = Equity 174.74b / Shares 804.8m; r=9.41% [WACC]; 5y FCF grow 11.23% → 3.0% )
EPS Correlation: 98.45 | EPS CAGR: 24.65% | SUE: 0.54 | # QB: 0
Revenue Correlation: 80.03 | Revenue CAGR: 5.66% | SUE: -0.02 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.64 | Chg30d=-5.22% | Revisions=-60% | Analysts=7
EPS next Quarter (2026-09-30): EPS=1.64 | Chg30d=-2.17% | Revisions=-40% | Analysts=6
EPS current Year (2026-12-31): EPS=6.49 | Chg30d=-2.17% | Revisions=-26% | GrowthEPS=+5.1% | GrowthRev=+8.2%
EPS next Year (2027-12-31): EPS=7.18 | Chg30d=-2.15% | Revisions=-40% | GrowthEPS=+10.7% | GrowthRev=+10.0%
[Analyst] Revisions Ratio: -60%