Tencent Music Entertainment Group

TME is fairly valued

NYSE · Communication Services

FAIR PRICE

6.5%fair value

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

$8.66

MARKET PRICE

$9.22

FAIR PRICE

$0.56

MARGIN

UNDERFAIROVER

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy TME?

No one has priced TME yet — be the first. Every investor sets the maximum price they'd still buy at; together that maps the community buy zone.

COMMUNITY MEDIAN

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BUYERS AT TODAY'S PRICE

▓▓ %

0/10 INVESTORS · 10 MORE TO UNLOCK

METRICS

P/E10.6
P/B1.2
P/S2.8
PEG0.12
DIV YIELD2.71%
ROE10.9%
ROIC8.8%
DEBT/EQ0.22
MKT CAP$91B

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FPI RATING

8.4/ 10

Strong profitability and low debt levels, but below-average fundamental quality.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$7.38CONSERVATIVE ENTRY
$9.22FAIR PRICE
$8.66MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$7.38

Fair price × 0.80

DISTANCE

14.8%

Price to entry level

At the current price of $8.66, TME trades 14.8% above the conservative entry level of $7.38. This entry level represents a 20% margin of safety below the calculated fair price of $9.22 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate TME's fair price

Tencent Music Entertainment Group's fair price of $9.22 is derived from a blended model that combines DCF analysis (50%), relative valuation against Communication Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $8.66, TME trades 6.5% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting TME's risk profile.

RELATIVE · 30%

Comparing TME's valuation multiples against Communication Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for TME, weighted by recency and analyst accuracy.

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FAQ

What is the fair price of TME?+

Based on our blended model combining DCF analysis (50%), relative valuation against Communication Services peers (30%), and analyst consensus (20%), the fair price for Tencent Music Entertainment Group is $9.22. At the current market price of $8.66, TME trades 6.5% below its calculated fair value.

Is TME overvalued or undervalued?+

Tencent Music Entertainment Group is currently fair based on our valuation model. The stock trades at $8.66, which is 6.5% below the fair price of $9.22. The P/E ratio of 10.6x is a key metric in the valuation.

What is the margin of safety for TME?+

With a 20% margin of safety applied to the fair price of $9.22, the conservative entry level for TME is $7.38. At the current market price of $8.66, the stock trades 14.8% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is TME's fair price updated?+

We update fair price calculations for TME daily after market close. The current fair price of $9.22 incorporates the latest market data and sector multiples.

What factors affect TME's fair price calculation?+

TME's fair price of $9.22 is derived from DCF analysis (50% weight), relative valuation against Communication Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 10.6x, ROE of 10.9%, and dividend yield of 2.71%.

Is TME a good buy right now?+

At $8.66, TME trades 6.5% below our fair value estimate of $9.22. The stock is currently fair. ROE stands at 10.9% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does TME pay dividends?+

TME has a dividend yield of 2.71%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.