Intrinsiqq
Tencent Music Entertainment Group ADR logoTencent Music Entertainment Group ADRTME
$8.65-0.06%
Tencent Music Entertainment Group ADR logo

Tencent Music Entertainment Group ADR

TME

$8.65

-$0.01 (-0.06%)

⊜ Compare
ProfitabilityStrong marginsGrowthAcceleratingCash FlowStrong conversionValuationAttractively priced
What stands out

29.59% operating margin is above average. ROIC at 10.24%.

What's changing

Revenue up 15.8% YoY with margins expanding 3.4pp.

What deserves caution

Even for strong businesses, today's 10x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.

Valuation context

10.1x earnings, 9.4x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

-61.8%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap¥91.07B
EPS¥5.70
P/E10.14
P/FCF9.44
EV/EBITDA6.27
FCF Yield10.6%
Div. Yield2.86%
Net Debt/FCF-2.1x
52-Week Range
$7.74$23.71

Profitability & Returns

Revenue (TTM)

¥33.93B

▲ +15.8% YoY

Net Income (TTM)

¥9.19B

▲ +59.7% YoY

Op. Margin

29.73%

▲ +3.4pp YoY

ROIC

10.24%

▲ +1.5pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

¥9.65B

▼ -2.2% YoY

Op. Cash Flow (TTM)

¥11.27B

▼ -4.7% YoY

Net Debt

-¥20.50B

Net Cash Position

Cash & Equiv.

¥24.32B

3Y CAGR: +5.1%

3Y CAGR: +12.1%

Continue Research

Is Tencent Music Entertainment Group ADR (TME) overvalued?

At a P/E of 10.1 and a price-to-free-cash-flow of 9.4, Tencent Music Entertainment Group ADR (TME) trades below a two-stage DCF intrinsic value of about CNY 322.17 per share, so at CNY 8.65 the stock looks undervalued (3,626.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Tencent Music Entertainment Group ADR scores 88/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.9%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Tencent Music Entertainment Group ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about CNY 322.17 per share for TME, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around CNY 241.63. At today's CNY 8.65, that puts the stock about 3,626.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Tencent Music Entertainment Group ADR a high-quality business?+

Tencent Music Entertainment Group ADR scores 88 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 29.7% operating margin and a 10.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Tencent Music Entertainment Group ADR (TME) pay a dividend, and how much?+

Yes, Tencent Music Entertainment Group ADR pays a regular dividend of about CNY 1.66 per share per year (typically in quarterly installments), a yield of roughly 2.9% at the current price. That is a payout ratio of about 28.4% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TME's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Tencent Music Entertainment Group ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. TME currently trades below its estimated intrinsic value and scores 88/100 on quality (high-quality). It also yields about 2.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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