Tencent Music Entertainment Group Class A

Tencent Music Entertainment Group Class A

32.14
HKD
-0.80
(-2.43%)
3.40EPS
9.86P/E
107.17BMarket Cap
Nov 17Next Earn

Total Valuation

HKD

As of June 30, 2026, Tencent Music Entertainment Group Class A carries a market capitalization of 107.17B, placing it among publicly traded companies globally. Its enterprise value stands at 94.50B, reflecting the total theoretical takeover cost after accounting for cash holdings and debt obligations.

Market Cap107.17B
Enterprise Value94.50B

Important Dates

Tencent Music Entertainment Group Class A's next confirmed earnings release is scheduled for November 17, 2026.

Earnings Date11/17/2026

Share Statistics

As of June 30, 2026, Tencent Music Entertainment Group Class A has 3.26B shares outstanding.

Shares Outstanding3.26B

Valuation Ratios

As of June 30, 2026, Tencent Music Entertainment Group Class A trades at a trailing price-to-earnings ratio of 9.86. The price-to-sales ratio is 2.59, and the price-to-book ratio stands at 1.18.

PE Ratio9.86
PS Ratio2.59
PB Ratio1.18
P/TBV Ratio2.30
P/FCF Ratio7.89
P/OCF Ratio7.80

Enterprise Valuation

As of June 30, 2026, Tencent Music Entertainment Group Class A trades at an EV/EBITDA multiple of 7.28 - the valuation measure that neutralizes differences in capital structure, tax rates, and depreciation policy, making it the standard yardstick for comparing companies across an industry. The EV/Sales ratio of 2.41 reflects the premium investors pay for the company's revenue stream, a useful check when earnings are depressed or negative. Its EV/EBIT multiple of 7.28 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. Tencent Music Entertainment Group Class A trades at an EV/FCF ratio of 7.18, comparing the total takeover cost of the business to the cash it actually generates for all capital providers. These enterprise value multiples are built on an enterprise value of 94.50B versus a market cap of 107.17B, with the gap driven by net debt and cash on the balance sheet.

EV / Sales2.41
EV / EBITDA7.28
EV / EBIT7.28
EV / FCF7.18

Financial Position

As of June 30, 2026, Tencent Music Entertainment Group Class A maintains a current ratio of 1.74, meaning it holds 1.7x the short-term assets needed to cover near-term liabilities. The debt-to-equity ratio is 20.83, indicating elevated leverage, while an interest coverage ratio of 82.59 demonstrates strong ability to service its debt obligations.

Current Ratio1.74
Quick Ratio1.59
Debt / Equity20.83
Debt / EBITDA1.50
Interest Coverage82.59

Financial Efficiency

HKD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Class A posted a return on equity (ROE) of 11.00, showing how much profit the company earns on every dollar of shareholder capital. Return on invested capital (ROIC) comes in at 9.64 - the clearest signal of whether the business earns more on its capital than that capital costs, and the core measure of a durable competitive advantage. Return on assets (ROA) stands at 7.93, measuring how efficiently the asset base is converted into earnings. Return on capital employed (ROCE) is 9.20, useful for judging operating efficiency across full business cycles. The company generates approximately 7.00M in revenue per employee across its workforce of 5,605.75, a quick read on workforce productivity versus industry peers. Inventory turnover of 290.66 indicates how many times Tencent Music Entertainment Group Class A sells and replaces its inventory over a year, a key working capital efficiency ratio.

Return on Equity (ROE)11.00
Return on Assets (ROA)7.93
Return on Invested Capital (ROIC)9.64
Return on Capital Employed (ROCE)9.20
Revenue Per Employee7.00M
Employee Count5,605.75
Inventory Turnover290.66

Taxes

HKD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Class A recorded 2.24B in income tax expense. That works out to an effective tax rate of 17.39, which can sit above or below the statutory corporate tax rate depending on foreign earnings mix, tax credits, and one-off items. Taxes are levied on pretax income of 12.85B, leaving 10.31B in net income after tax - the gap is what shifts in the tax rate do to reported earnings and EPS.

Income Tax2.24B
Effective Tax Rate17.39

Stock Price Statistics

HKD

As of the close on October 22, 2026, Tencent Music Entertainment Group Class A's stock has declined approximately 63.27% over the past 52 weeks. The 50-day moving average sits at 32.60, while the 200-day moving average is 42.18.

52-Week Price Change-63.27%
50-Day Moving Average32.60
200-Day Moving Average42.18

Income Statement

HKD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Class A generated 39.22B in revenue and converted that into 10.31B in net income, yielding earnings per share of 3.40. EBITDA reached 12.98B, while operating income came in at 11.66B.

Revenue39.22B
Gross Profit17.38B
Operating Income11.66B
Pretax Income12.85B
Net Income10.31B
EBITDA12.98B
EBIT12.98B
Earnings Per Share (EPS)3.40

Balance Sheet

HKD

As of June 30, 2026, Tencent Music Entertainment Group Class A holds 35.43B in cash and equivalents against 19.51B in total debt, resulting in a net debt position of -8.29B. Total book value stands at 90.47B, with working capital of 19.58B providing operational flexibility.

Cash & Cash Equivalents35.43B
Total Debt19.51B
Net Debt-8.29B
Equity (Book Value)90.47B
Book Value Per Share27.75
Working Capital19.58B

Cash Flow

HKD

Tencent Music Entertainment Group Class A produced 13.03B in operating cash flow over the twelve months ended June 30, 2026.

Operating Cash Flow13.03B
Free Cash Flow13.03B
FCF Per Share4.21

Margins

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Class A posted a gross margin of 44.32, reflecting its pricing power and cost economics. The operating margin of 29.73 and net profit margin of 26.28 provide insight into operational efficiency.

Gross Margin44.32
Operating Margin29.73
Pretax Margin32.78
Profit Margin26.28
EBITDA Margin33.10

Dividends & Yields

These figures cover the twelve months ended June 30, 2026. Free cash flow yield stands at 12.68, showing how much cash the business generates relative to its market value - dividends covered by free cash flow are generally more durable than those funded by debt. Total shareholder yield is negative at -5.54, meaning Tencent Music Entertainment Group Class A raised more capital through share issuance and new debt than it returned via dividends and buybacks.

Shareholder Yield-5.54
FCF Yield12.68

Scores

As of June 30, 2026, Tencent Music Entertainment Group Class A has an Altman Z-Score of 3.21, well above the 3.0 threshold that indicates strong financial health and minimal bankruptcy risk.

Altman Z-Score3.21