TME

Tencent Music Entertainment Group

Add to Watchlist

Advanced Chart

21.890

+0.34(1.578%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

21.900

Open

21.390

VWAP

21.75

Vol

3.87M

Mkt Cap

75.13B

Low

21.390

Amount

84.07M

EV/EBITDA(TTM)

29.02

Total Shares

1.72B

34.16B

EV/OCF(TTM)

24.39

P/S(TTM)

4.18

Tencent Music Entertainment Group is a holding company mainly engaged in the provision and operation of online music entertainment platform. The Company is mainly engaged in the provision of online music services, social entertainment services and other services. The Company operates four major product brands, QQ Music, Kugou Music, Kuwo Music and WeSing, through which the Company provides online music and social entertainment services to address the music entertainment needs of audience in China. The Company also offers Lazy Audio, the dedicated long-form audio app as a complement to the flagship music-centric product portfolio.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q2

FY2025Q3

FY2025Q4

7.97B

+11.35%

1.465

+23.07%

7.81B

+11.37%

1.434

+23.63%

8.19B

+9.82%

1.571

+6.89%

Estimates Revision

The market is revising Upward the revenue expectations for Tencent Music Entertainment Group (TME) for FY2025, with the revenue forecasts being adjusted by 1.12% over the past three months. During the same period, the stock price has changed by 51.91%.

Revenue Estimates for FY2025

Revise Upward

+1.12%

In Past 3 Month

EPS Estimates for FY2025

Revise Upward

+3.47%

In Past 3 Month

Stock Price

Go Up

+51.91%

In Past 3 Month

11 Analyst Rating

-12.06% Downside

Wall Street analysts forecast TME stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TME is 19.25 USD with a low forecast of 16.00 USD and a high forecast of 26.20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

10 Buy

1 Hold

0 Sell

Strong Buy

-12.06% Downside

Current: 21.890

Low

16.00

Averages

19.25

High

26.20

-12.06% Downside

Current: 21.890

Low

16.00

Averages

19.25

High

26.20

Macquarie

Ellie Jiang

Outperform

upgrade

2025-06-18

Reason

Macquarie

Ellie Jiang

Price Target

2025-06-18

upgrade

Outperform

Reason

Macquarie analyst Ellie Jiang raised the firm's price target on Tencent Music to $26.20 from $17.10 and keeps an Outperform rating on the shares. The firm reaffirms its positive view on Tencent, expecting the company to build a unique presence from content creation to entertainment consumption. Recent M&As should be value-accretive in nature, both playing favorably to music revenue momentum, Macquarie says. The firm is also adding Tencent to Marquee Buy with overall preference over virtual content consumption.

Bernstein

Outperform

maintain

$15

2025-05-14

Reason

Bernstein

Price Target

$15

2025-05-14

maintain

Outperform

Reason

Bernstein raised the firm's price target on Tencent Music to $15.50 from $15 and keeps an Outperform rating on the shares. The firm cites an in line top and bottom line with strong performance in Music subscription.

Morgan Stanley

Overweight

maintain

2025-05-13

Reason

Morgan Stanley

Price Target

2025-05-13

maintain

Overweight

Reason

Morgan Stanley raised the firm's price target on Tencent Music to $16.50 from $14.70 and keeps an Overweight rating on the shares. The firm says that with overall positive growth outlook unchanged, average revenue per paying user will contribute more. In Q1 2025, Tencent did well in balancing paying user scale and ARPPU uplifting, with SVIP penetration and less promotion activities in holidays contributing to the growth, Morgan Stanley says. Meanwhile, the company is confident that ARPPU will do more heavy lifting.

Mizuho

Wei Fang

Buy

Maintains

$16 → $17

2025-03-19

Reason

Mizuho

Wei Fang

Price Target

$16 → $17

2025-03-19

Maintains

Buy

Reason

Mizuho analyst Wei Fang raised the firm's price target on Tencent Music to $17 from $16 and keeps an Outperform rating on the shares. Tencent Music's quarter was "clean," with both revenue and margins beating expectations, the analyst tells investors in a research note. The firm remains constructive on Tencent Music due to its category leading position in the low-penetrated online music industry in China.

Morgan Stanley

Alex Poon

Hold

Buy

Upgrades

$13

2025-01-21

Reason

Morgan Stanley

Alex Poon

Price Target

$13

2025-01-21

Upgrades

Hold

Buy

Reason

Morgan Stanley upgraded Tencent Music to Overweight from Equal Weight with an unchanged price target of $13, 25% upside. The firm sees "emerging value" from the company's "resilient operations and defensive nature" following the recent share price underperformance. Tencent Music is an "underappreciated defensive play" amid the market's macro concern, the analyst tells investors in a research note. Morgan Stanley believes the company is on track to reach its net additions target.

Barclays

Jiong Shao

Buy

Initiates

$16

2024-11-06

Reason

Barclays

Jiong Shao

Price Target

$16

2024-11-06

Initiates

Buy

Reason

Barclays analyst Jiong Shao initiated coverage of Tencent Music with an Overweight rating and $16 price target. The combination of a market with little competition, management's track record of adaption and execution, and a "new growth path ahead" make Tencent Music one of the best positioned Chinese internet companies, the analyst tells investors in a research note. The firm says the company has dominant market share, a focused strategy, and a proven execution record, which make it a "compelling asset to own."

See All Ratings

Valuation Metrics

The current forward P/E ratio for Tencent Music Entertainment Group (TME.N) is 24.94, compared to its 5-year average forward P/E of 21.41. For a more detailed relative valuation and DCF analysis to assess Tencent Music Entertainment Group 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Fair

5Y Average PE

21.41

Current PE

24.94

Overvalued PE

34.64

Undervalued PE

8.17

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

N/A

5Y Average EV/EBITDA

16.93

Current EV/EBITDA

0.00

Overvalued EV/EBITDA

29.60

Undervalued EV/EBITDA

4.26

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

N/A

5Y Average PS

4.00

Current PS

0.00

Overvalued PS

5.78

Undervalued PS

2.22