Tencent Music Entertainment (TME) Stock Analysis

November 11, 2026

This is a peer-relative look at Tencent Music Entertainment (TME): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Tencent Music Entertainment (TME) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Tencent Music Entertainment (TME)
Profile Item	TME
Name	Tencent Music Entertainment Group ADR
Country/Region	China
GICS Sector	Communication Services
GICS Industry Group	Media & Entertainment
GICS Industry	Entertainment
GICS Sub-Industry	Movies & Entertainment
Market Capitalization	15.58 billion USD
Currency	USD
Exchange	NYSE
Listing Date	December 12, 2018
Security Type	ADR

Price Performance

Cumulative Growth

TME

GSPC

Tencent Music Entertainment (TME) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Tencent Music Entertainment (TME) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Tencent Music Entertainment (TME) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Total Return (1Y)	-55.15%	8.37%
Total Return (3Y, Annualized)	9.39%	9.50%
Total Return (5Y, Annualized)	4.17%	-6.51%

Risk Profile

Drawdown History

TME

GSPC

Tencent Music Entertainment (TME) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Tencent Music Entertainment (TME) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Volatility (1Y, Annualized)	47.08%	43.78%
Beta (5Y)	0.70	0.92
Max Drawdown (5Y)	-69.85%	-69.17%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TME is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Sharpe Ratio (1Y)	-1.26	0.10
Sortino Ratio (1Y)	-1.50	0.15

Profitability

ROE (TTM)

Tencent Music Entertainment (TME) posts ROE of 10.97%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

TME

Media & Entertainment industry group

10.97%

Group distribution

Max: 49.92%
Q3: 17.95%
TME: 10.97%
Median: 7.20%
Q1: -4.53%
Min: -26.31%

Largest peers

NFLX: 53.46%
GOOGL: 44.29%
GOOG: 44.29%
SPOT: 35.81%
META: 32.26%
TME: 10.97%
DIS: 8.01%

Where Tencent Music Entertainment (TME) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Tencent Music Entertainment (TME) keeps 26.28% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TME

Media & Entertainment industry group

26.28%

Group distribution

Max: 32.91%
TME: 26.28%
Q3: 11.75%
Median: 5.04%
Q1: -4.17%
Min: -25.14%

Largest peers

GOOGL: 50.03%
GOOG: 50.03%
META: 31.15%
NFLX: 29.69%
TME: 26.28%
SPOT: 15.73%
DIS: 8.70%

Where Tencent Music Entertainment (TME) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Tencent Music Entertainment (TME) turns 29.18% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

TME

Media & Entertainment industry group

29.18%

Group distribution

Max: 40.16%
TME: 29.18%
Q3: 18.72%
Median: 8.63%
Q1: 1.90%
Min: -22.08%

Largest peers

META: 35.41%
NFLX: 34.63%
GOOGL: 31.81%
GOOG: 31.81%
TME: 29.18%
DIS: 19.30%
SPOT: 13.52%

Where Tencent Music Entertainment (TME) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
ROE (TTM)	10.97%	7.20%
ROA (TTM)	5.60%	3.36%
Net Margin (TTM)	26.28%	5.04%
Operating Margin (TTM)	29.18%	8.63%
Gross Margin (TTM)	44.32%	50.97%

Growth

Revenue Growth

Tencent Music Entertainment (TME) grew revenue 15.85%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

Tencent Music Entertainment (TME): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

Tencent Music Entertainment (TME) grew earnings per share 67.92%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

Tencent Music Entertainment (TME): EPS Growth across different time periods, set against Media & Entertainment industry-group medians.

Growth Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Revenue Growth (YoY)	15.85%	4.57%
Revenue Growth (3Y CAGR)	5.10%	5.19%
EPS Growth (YoY)	67.92%	1.00%
EPS Growth (3Y CAGR)	46.17%	25.23%

Financial Strength

Current Ratio (MRQ)

Tencent Music Entertainment (TME) has current ratio of 1.75, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

TME

Media & Entertainment industry group

1.75

Group distribution

Max: 4.69
Q3: 2.53
TME: 1.75
Median: 1.52
Q1: 0.95
Min: 0.28

Largest peers

GOOGL: 2.79
GOOG: 2.79
SPOT: 2.13
META: 1.90
TME: 1.75
NFLX: 1.08
DIS: 0.71

Where Tencent Music Entertainment (TME) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Tencent Music Entertainment (TME) has debt-to-equity ratio of 0.21, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

TME

Media & Entertainment industry group

0.21

Group distribution

Max: 3.65
Q3: 1.69
Median: 0.46
TME: 0.21
Q1: 0.17
Min: 0.00

Largest peers

NFLX: 0.60
META: 0.42
DIS: 0.39
GOOGL: 0.22
GOOG: 0.22
TME: 0.21
SPOT: 0.05

Where Tencent Music Entertainment (TME) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Current Ratio (MRQ)	1.75	1.52
Debt / Equity (MRQ)	0.21	0.46
Net Debt / EBITDA	-1.22	1.29

Dividends

Dividend Yield (TTM)

Tencent Music Entertainment (TME) has dividend yield of 17.77%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

TME

Media & Entertainment industry group

17.77%

Group distribution

TME: 17.77%
Max: 1.33%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

TME: 17.77%
DIS: 1.28%
META: 0.35%
GOOG: 0.31%
GOOGL: 0.30%
NFLX: 0.00%
SPOT: 0.00%

Where Tencent Music Entertainment (TME) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Tencent Music Entertainment (TME) has payout ratio of 29.65%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

TME

Media & Entertainment industry group

29.65%

Group distribution

Max: 71.43%
TME: 29.65%
Q3: 28.98%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

DIS: 30.93%
TME: 29.65%
META: 7.16%
GOOGL: 4.49%
GOOG: 4.49%
NFLX: 0.00%
SPOT: 0.00%

Where Tencent Music Entertainment (TME) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
Dividend Yield (TTM)	17.77%	0.00%
Dividend Payout Ratio (TTM)	29.65%	0.00%

Valuation

P/E Ratio (TTM)

Tencent Music Entertainment (TME) trades at P/E ratio of 11.66, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

TME

Media & Entertainment industry group

11.66

Group distribution

Max: 51.21
Q3: 28.90
Median: 17.98
TME: 11.66
Q1: 11.53
Min: 1.64

Largest peers

SPOT: 36.75
DIS: 24.07
META: 20.82
NFLX: 18.33
GOOGL: 14.87
GOOG: 14.83
TME: 11.66

Where Tencent Music Entertainment (TME) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Tencent Music Entertainment (TME) trades at 0.46 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

TME

Media & Entertainment industry group

0.46

Group distribution

Max: 7.43
Q3: 3.82
Median: 1.40
Q1: 0.70
TME: 0.46
Min: 0.00

Largest peers

GOOGL: 7.43
GOOG: 7.41
SPOT: 6.59
META: 6.46
NFLX: 5.24
DIS: 2.04
TME: 0.46

Where Tencent Music Entertainment (TME) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Tencent Music Entertainment (TME) trades at 1.35 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

TME

Media & Entertainment industry group

1.35

Group distribution

Max: 11.45
Q3: 5.30
Median: 1.84
TME: 1.35
Q1: 0.77
Min: -2.61

Largest peers

SPOT: 12.62
NFLX: 8.89
META: 5.73
GOOGL: 5.31
GOOG: 5.29
DIS: 1.84
TME: 1.35

Where Tencent Music Entertainment (TME) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Tencent Music Entertainment (TME) metric values compared with Media & Entertainment industry-group medians
Metric	Current stock: TME	Industry group median
P/E Ratio (TTM)	11.66	17.98
P/S Ratio (TTM)	0.46	1.40
P/B Ratio (MRQ)	1.35	1.84
Free Cash Flow Yield (TTM)	45.80%	7.41%