WallStSmart
TME

Tencent Music Entertainment Group

NYSE: TME · COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION

$9.24
-2.37% today

Updated 2026-06-05

Market cap
$14.85B
P/E ratio
10.80
P/S ratio
0.44x
EPS (TTM)
$0.84
Dividend yield
2.65%
52W range
$8 – $26
Volume
10.4M

WallStSmart proprietary scores

72
out of 100
Grade: B
Buy
Investment rating
4.7
Growth
C
9.0
Quality
A+
8.0
Profitability
A
8.7
Valuation
A
7/9
Piotroski F-Score
Strong
3.9
Altman Z-Score
Safe zone
Industry rank
View all highly rated stocks (75+) →202 stocks currently score above 75

Price targets

Analyst target
$15.92
+72.29%
12-Month target
$9.87
+6.82%
Intrinsic (DCF)
$39.35
Margin of safety
+56.95%
4 Strong Buy18 Buy8 Hold0 Sell0 Strong Sell

Price chart

Stock snapshot

Strengths
+ Piotroski 7/9 — strong financial health
+ Altman Z 3.92 — safe zone
+ Profit margin 26.50% — above average
+ 56.95% below intrinsic value
+ Debt/equity 0.07x — low leverage
Risks
No major risks identified

Key financials

Revenue Net Income Free Cash Flow
Metric2022202320242025TTM
Revenue$28.34B$27.75B$28.40B$32.90B$33.44B
Net income$3.68B$4.92B$6.64B$11.06B$2.08B
EPS$0.84
Free cash flow$6.43B$6.17B$9.24B$9.86B$0.00
Profit margin12.98%17.73%23.39%33.60%26.50%

Peer comparison

CompanyMkt CapScoreGrowthProfitValueQualityMoSRating
TME$14.85B724.78.08.79.0+56.95%Strong Buy
GOOGL$4.38T768.79.57.38.0+43.60%Strong Buy
GOOG$4.34T758.79.56.08.0+0.89%Strong Buy
META$1.52T839.310.08.07.0+35.23%Exceptional Buy
NFLX$350.89B758.710.04.07.0-50.79%Strong Buy
TMUS$204.35B624.07.05.34.0-56.56%Buy

Smart narrative

Tencent Music Entertainment Group trades at $9.24. representing a P/E of 10.80x trailing earnings. Our Smart Value Score of 72/100 indicates the stock is good. The company scores 7/9 on the Piotroski F-Score. With an Altman Z-Score of 3.92, it sits in the safe zone. TTM revenue stands at $33.44B. with profit margins at 26.50%. Our DCF model estimates intrinsic value at $39.35.

Frequently asked questions

What is Tencent Music Entertainment Group's stock price?

Tencent Music Entertainment Group (TME) trades at $9.24, on a P/E of 10.8x and a P/S of 0.4x. Those multiples show what the market is paying for each dollar of earnings and sales, which is the real starting point for judging whether the price is reasonable.

Is Tencent Music Entertainment Group overvalued?

Tencent Music Entertainment Group carries a Smart Value Score of 72/100 (Grade B), which we rate Buy. That score blends growth, quality, and valuation into one read. Our DCF puts intrinsic value at $39.35 versus the $9.24 price, a 57.0% margin of safety on a cash flow basis.

What is the price target of Tencent Music Entertainment Group (TME)?

The 12-month analyst consensus target is $15.92, about 72.3% above the current $9.24. A consensus target is the average of Wall Street's 12-month forecasts, so it works as a sentiment gauge rather than a guarantee, and it resets with every earnings cycle.

What is the intrinsic value of Tencent Music Entertainment Group (TME)?

Our DCF model estimates intrinsic value at $39.35, a +57.0% margin of safety versus today's $9.24. Intrinsic value is what the projected cash flows are worth today. A positive reading means the price sits below that estimate, leaving a cushion if growth holds.

What is Tencent Music Entertainment Group's revenue?

Tencent Music Entertainment Group's trailing twelve-month revenue is $33.44B. Revenue scale anchors the valuation multiples and shows whether growth is reaching the top line, so it is best read alongside margin and growth trends to see if that revenue is getting more profitable over time.

Altman Z-Score?

Tencent Music Entertainment Group's Altman Z-Score is 3.92, which places it in the safe zone. The Altman Z-Score gauges bankruptcy risk from profitability, leverage, and asset efficiency, and a higher reading points to lower financial distress risk.

Company info

SectorCOMMUNICATION SERVICES
IndustryINTERNET CONTENT & INFORMATION
CountryChina
ExchangeNYSE
CurrencyUSD

Quick metrics

P/S ratio0.44x
ROE11.53%
Beta0.77
50D MA$9.28
200D MA$16.65
Shares out0.80B
Float0.56B
Short ratio
Avg volume10.4M

Performance

1 week+0.00%
1 month+7.20%
3 months-38.25%
YTD-48.20%
1 year
3 years
5 years