Tencent Music Entertainment Group (TME) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Tencent Music Entertainment Group stock (TME) is currently trading at $9.73. Tencent Music Entertainment Group PE ratio is 9.57. Tencent Music Entertainment Group PS ratio (Price-to-Sales) is 0.51. Analyst consensus price target for TME is $18.50. WallStSmart rates TME as Buy.
- TME PE ratio analysis and historical PE chart
- TME PS ratio (Price-to-Sales) history and trend
- TME intrinsic value — DCF, Graham Number, EPV models
- TME stock price prediction 2025 2026 2027 2028 2029 2030
- TME fair value vs current price
- TME insider transactions and insider buying
- Is TME undervalued or overvalued?
- Tencent Music Entertainment Group financial analysis — revenue, earnings, cash flow
- TME Piotroski F-Score and Altman Z-Score
- TME analyst price target and Smart Rating
Tencent Music Entertainment Group
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TME Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Tencent Music Entertainment Group (TME)
TME trades at a significant discount to its Graham intrinsic value of $30.08, offering a 44% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Tencent Music Entertainment Group (TME) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, operating margin. Overall metrics suggest strong investment potential with favorable risk/reward.
Tencent Music Entertainment Group (TME) Key Strengths (7)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Keeps $34 of every $100 in revenue as net profit
Large-cap company with substantial market presence
Strong operational efficiency: $30 kept per $100 revenue
Trading at 1.30x book value, attractively priced
67.55% held by institutions, strong professional interest
Supporting Valuation Data
Tencent Music Entertainment Group (TME) Areas to Watch (3)
Moderate profitability with room for improvement
Solid revenue growth at 15.90% per year
Solid earnings growth at 14.00%
Tencent Music Entertainment Group (TME) Detailed Analysis Report
Overall Assessment
This company scores 80/100 in our Smart Analysis, earning a A- grade. Out of 10 metrics analyzed, 7 register as strengths (avg 9.0/10) while 3 fall into concern territory (avg 5.7/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Profit Margin. Valuation metrics including PEG Ratio (0.89), Price/Sales (0.51), Price/Book (1.30) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 29.90%, Profit Margin at 33.60%.
The Bear Case
The primary concerns are Return on Equity, Revenue Growth, EPS Growth. Growth concerns include Revenue Growth at 15.90%, EPS Growth at 14.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 14.90%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 14.90% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 15.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of PEG Ratio and Price/Sales makes a compelling case at current levels. The key risk is Return on Equity, but the overall fundamental picture is positive with a clear path to maintaining or improving the current A- grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TME Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TME's Price-to-Sales ratio of 0.51x trades 38% below its historical average of 0.81x (24th percentile). The current valuation is 79% below its historical high of 2.37x set in Apr 2021, and 130% above its historical low of 0.22x in May 2022. Over the past 12 months, the PS ratio has compressed from ~0.8x as trailing revenue scaled faster than the stock price.
Compare TME with Competitors
Top INTERNET CONTENT & INFORMATION stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Tencent Music Entertainment Group (TME) · COMMUNICATION SERVICES › INTERNET CONTENT & INFORMATION
The Big Picture
Tencent Music Entertainment Group is a strong growth company balancing expansion with improving profitability. Revenue reached 32.9B with 16% growth year-over-year. Profit margins are strong at 33.6%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 33.6% and operating margin of 29.9% demonstrate strong pricing power and operational efficiency.
Generating 3.7B in free cash flow and 3.7B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Sector dynamics: monitor INTERNET CONTENT & INFORMATION industry trends, competitive moves, and regulatory changes that could impact Tencent Music Entertainment Group.
Bottom Line
Tencent Music Entertainment Group offers an attractive blend of growth (16% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 10:02:17 AM
About Tencent Music Entertainment Group(TME)
NYSE
COMMUNICATION SERVICES
INTERNET CONTENT & INFORMATION
China
Tencent Music Entertainment Group operates online music entertainment platforms providing music streaming, online karaoke and live streaming services in the People's Republic of China.