TME Relative Valuation
TME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TME is overvalued; if below, it's undervalued.
Historical Valuation
Tencent Music Entertainment Group (TME) is now in the Fair zone, suggesting that its current forward PE ratio of 19.44 is considered Fairly compared with the five-year average of 20.86. The fair price of Tencent Music Entertainment Group (TME) is between 12.95 to 32.91 according to relative valuation methord.
Relative Value
Fair Zone
12.95-32.91
Current Price：18.72
Fair
19.44
PE
1Y
3Y
5Y
Trailing
Forward
15.43
EV/EBITDA
Tencent Music Entertainment Group. (TME) has a current EV/EBITDA of 15.43. The 5-year average EV/EBITDA is 16.55. The thresholds are as follows: Strongly Undervalued below -8.45, Undervalued between -8.45 and 4.05, Fairly Valued between 29.05 and 4.05, Overvalued between 29.05 and 41.55, and Strongly Overvalued above 41.55. The current Forward EV/EBITDA of 15.43 falls within the Historic Trend Line -Fairly Valued range.
16.43
EV/EBIT
Tencent Music Entertainment Group. (TME) has a current EV/EBIT of 16.43. The 5-year average EV/EBIT is 18.91. The thresholds are as follows: Strongly Undervalued below -8.97, Undervalued between -8.97 and 4.97, Fairly Valued between 32.85 and 4.97, Overvalued between 32.85 and 46.79, and Strongly Overvalued above 46.79. The current Forward EV/EBIT of 16.43 falls within the Historic Trend Line -Fairly Valued range.
5.71
PS
Tencent Music Entertainment Group. (TME) has a current PS of 5.71. The 5-year average PS is 4.14. The thresholds are as follows: Strongly Undervalued below 0.22, Undervalued between 0.22 and 2.18, Fairly Valued between 6.10 and 2.18, Overvalued between 6.10 and 8.06, and Strongly Overvalued above 8.06. The current Forward PS of 5.71 falls within the Historic Trend Line -Fairly Valued range.
16.62
P/OCF
Tencent Music Entertainment Group. (TME) has a current P/OCF of 16.62. The 5-year average P/OCF is 19.24. The thresholds are as follows: Strongly Undervalued below -5.47, Undervalued between -5.47 and 6.89, Fairly Valued between 31.59 and 6.89, Overvalued between 31.59 and 43.94, and Strongly Overvalued above 43.94. The current Forward P/OCF of 16.62 falls within the Historic Trend Line -Fairly Valued range.
18.73
P/FCF
Tencent Music Entertainment Group. (TME) has a current P/FCF of 18.73. The 5-year average P/FCF is 22.10. The thresholds are as follows: Strongly Undervalued below -3.73, Undervalued between -3.73 and 9.19, Fairly Valued between 35.02 and 9.19, Overvalued between 35.02 and 47.94, and Strongly Overvalued above 47.94. The current Forward P/FCF of 18.73 falls within the Historic Trend Line -Fairly Valued range.
Tencent Music Entertainment Group (TME) has a current Price-to-Book (P/B) ratio of 2.46. Compared to its 3-year average P/B ratio of 2.08 , the current P/B ratio is approximately 18.42% higher. Relative to its 5-year average P/B ratio of 2.12, the current P/B ratio is about 16.05% higher. Tencent Music Entertainment Group (TME) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.76%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.01% , the current FCF yield is about -100.00% lower.
2.46
P/B
Median3y
2.08
Median5y
2.12
4.89
FCF Yield
Median3y
6.76
Median5y
7.01
Competitors Valuation Multiple
The average P/S ratio for TME's competitors is , providing a benchmark for relative valuation. Tencent Music Entertainment Group Corp (TME) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 20.64%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TME increased by 64.93% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.93 to 19.08.
The secondary factor is the Revenue Growth, contributed 20.64%to the performance.
Overall, the performance of TME in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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