Value Sense
TME

Tencent Music Entertainment Group (TME)

Last Price$14.21.3%
Market Cap$22.0B

TME Rating

TME Quality rating
7.3
How this score works?
TME Quality rating performance

TME Intrinsic Value

Key Highlights:
Relative Value vs Current Share Price
As of Mar 24, 2025 TME Relative Value is $17.0, which is undervalued by 20.0%, compared to current share price of $14.2.
DCF Value vs Current Share Price
As of Mar 24, 2025 TME DCF Value is $13.9, which is overvalued by 1.8%, compared to current share price of $14.2.
Methodology
Price per share, $
TME
Intrinsic value$15.4
Undervalued by8.3%
Current share price
14.2
Relative value
17.0
DCF value
13.9

TME Share Price History

1W 8.6%
1M 9.2%
6M 19.7%
YTD 63.7%
1Y 28.2%
3Y 173.7%
5Y 43.8%
10Y 2.1%
Share Price
Intrinsic Value
Drawdown
Total Return
vs SP500
vs NASDAQ
Crunching data... Almost there!

TME Stock Metrics

Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Base
Market Cap
$22.0B
Enterprise Value
$18.8B
LTM Revenue
CN¥28.4B
LTM Free Cash Flow
CN¥10.3B
Shares Outstanding
1,553M
Employees
N/A
Growth (CAGR)
Revenue 5Y
2.2%
Operating Income 5Y
13.5%
EPS 5Y
8.51%
Free Cash Flow 5Y
11.1%
Forward Revenue 2Y
1.8%
Forward EPS 2Y
38.08%
Profitability
Gross margin
42.3%
EBIT margin
30.7%
Net income margin
23.4%
OCF margin
36.2%
FCF margin
36.2%
FCF / Net Income
207.1%
Intrinsic Value
Intrinsic Value
$15.4 (8.3% undervalued)
DCF Value
$13.7
Relative Value
$17.0
Peter Lynch fair value
$16.4
Ben Graham fair value
$19.3
Reverse DCF (implied FCF growth)
(2.8%)
EPV, % of EV
206.7%
Valuation (LTM)
EV / Revenue
4.8x
EV / EBIT
15.7x
P / FCF
15.6x
P / E
24.1x
P / BV
2.3x
PEG
0.6x
FCF Yield
6.4%
Return on Capital
ROE
7.4%
ROA
5.7%
ROIC
34.6%
ROCE
9.9%
ROE 5Y avg
6.7%
ROIC 5Y avg
21.4%
ROCE 5Y avg
21.4%
Financial Health
Cash & Short-term Investments
CN¥27.2B
Net Debt
(CN¥23.3B)
Net Debt / FCF
(2.3x)
EBIT / Interest
56.9x
Total Debt / Equity
5.6%
Dividends
Dividends per share (DPS)
CN¥0.0
DPS 5Y CAGR
(100.0%)
Dividend Yield
0.0%
FCF Payout ratio
0.0%
Ex-dividend date
May 31, 2024
Earnings
Next earnings date
May 12, 2025
Last Revenue surprise
BEAT by 86.0%
Last EPS surprise
MISS by (6.3%)
Next EPS YoY growth
(15.8%)
Last 10 earnings
3 Beat & 7 Miss

TME Stock Financials

TME Income Statement Metrics

Annual
Quarterly
LTM

Revenue

$3,921.0M -2.1% YoY

Operating Income

$856.1M +36.4% YoY

Net Income

$695.1M +33.8% YoY

TME Cash Flow Statement Metrics

Annual
Quarterly
LTM

Operating Cash Flow (OCF)

$1,036.6M -1.9% YoY

Capital Expenditure (CAPEX)

($164.5M) +94.1% YoY

Free Cash Flow (FCF)

$872.2M -3.0% YoY

TME Income Statement Overview

Annual
Quarterly
LTM
Dec'16
Dec'17
Dec'18
Dec'19
Dec'20
Dec'21
Dec'22
Dec'23
Revenue
$3,921.0M (2.1%) YoY
Gross profit
$1,383.9M 11.6% YoY
35.3% margin
Cost of revenue
$2,537.1M (8.2%) YoY
Operating income
$856.1M 36.4% YoY
21.8% margin
Other: $133.1M
Net interest: $131.1M
Operating expenses
$527.9M (32.8%) YoY
Pre-tax income
$854.1M 38.2% YoY
21.8% margin
Net income
$695.1M 33.8% YoY
17.7% margin
Income tax
$116.6M
13.6% tax rate
SG&A
$709.0M (9.7%) YoY
18.1% of revenue

TME Balance Sheet Overview

Annual
Quarterly
LTM
Dec'16
Dec'17
Dec'18
Dec'19
Dec'20
Dec'21
Dec'22
Dec'23
Assets
Liabilities
Total assets
$10.6B
Current assets ($4,216.5M, 39.6% of total)
Cash & ST investments
$3,315.7M (31.2%)
Accounts receivables
$411.0M (3.9%)
Other current assets
$489.7M (4.6%)
Non-current assets ($6,422.8M, 60.4% of total)
Long-term investments
$2,794.5M (26.3%)
Intangible assets
$629.5M (5.9%)
Other non-current assets
$2,878.1M (27.1%)
Financial position
Net Debt
($2,463.9M)
$3,315.7M$851.9M
Cash & Short-term Investments
Total Debt
Quick ratio
2.2x
Net Debt to Free Cash Flow
(2.8x)
Debt to Equity ratio
10.6%

TME Stock Ratios

Annual
Quarterly
LTM
Industry Median
5Y Historical Average
Benchmark
Revenue growth
EPS growth
Gross margin
Free Cash Flow margin
Net Debt to FCF
FCF to Interest
ROIC
Shareholder yield

TME Earnings Surprises

Crunching data... Almost there!

TME Dividends

TME Dividend Yield

Crunching data... Almost there!

TME Dividend Per Share

3Y
10Y
30Y
Annual
Quarterly
LTM
1Y Growth
N/A
3Y CAGR
(100.0%)
5Y CAGR
(100.0%)
10Y CAGR
(100.0%)

Competing with TME

Overview
Ratings
Intrinsic Value
Valuation
Growth
Profitability
Health
Capital allocation
Momentum
Earnings
Dividends
Company name
Market Cap
Quality rating
Intrinsic value
1Y Return
Revenue
Free Cash Flow
Revenue growth
FCF margin
Gross margin
ROIC
Total Debt to Equity
TME
$22.0B
7.3
$15.4
8.3% undervalued
28.2%
CN¥28.4B
CN¥10.3B
2.3%
36.2%
42.3%
34.6%
5.6%
GOOG
$2,049.2B
7.9
$156.5
7.9% overvalued
13.0%
$349.8B
$72.8B
13.8%
20.8%
58.3%
36.4%
7.9%
META
$1,567.1B
8.4
$434.4
29.8% overvalued
23.3%
$164.5B
$54.1B
21.9%
32.9%
81.7%
38.1%
26.9%
SPOT
$125.1B
7.7
$183.0
69.7% overvalued
130.9%
€15.7B
€2,296.0M
15.8%
14.6%
30.0%
73.0%
36.2%
DASH
$83.0B
6.6
$107.7
45.9% overvalued
44.4%
$10.7B
$1,802.0M
24.2%
16.8%
47.0%
(1.6%)
6.9%
BIDU
$33.3B
6.1
$365.8
281.6% undervalued
(9.3%)
CN¥136.6B
CN¥14.7B
1.5%
10.8%
50.0%
36.2%
28.0%
RDDT
$24.9B
6.5
$39.2
68.6% overvalued
108.9%
$1,300.2M
$215.8M
61.7%
16.6%
90.2%
(149.8%)
1.3%
PINS
$23.0B
7.3
$18.7
44.9% overvalued
(2.7%)
$3,646.2M
$940.0M
19.3%
25.8%
79.4%
198.4%
3.2%
Z
$17.2B
6.2
$93.7
27.2% undervalued
49.3%
$2,236.0M
$278.0M
15.0%
12.4%
76.4%
(5.7%)
13.6%
TWLO
$16.3B
6.0
$141.3
32.9% undervalued
70.7%
$4,458.0M
$657.5M
7.3%
14.7%
50.5%
(1.0%)
1.5%
SNAP
$16.0B
5.3
$16.4
71.5% undervalued
(15.3%)
$5,361.4M
$218.7M
16.4%
4.1%
53.9%
(20.9%)
173.2%

FAQ

What is Tencent Music Entertainment Group (TME) stock rating?

As of today, Tencent Music Entertainment Group has a stock rating of 7 (out of 10), which is considered Great.

is Tencent Music Entertainment Group (TME) a good stock to buy?

As of today, Tencent Music Entertainment Group has a Great stock rating, which is 8.3% undervalued. According to Value Sense backtesting, stocks with similar profile tend to outperform the market by 12.8%.