Tencent Music Entertainment Group Class A

Tencent Music Entertainment Group Class A

8.56
USD
+0.14
(+1.66%)
0.87EPS
9.80P/E
13.58BMarket Cap
Nov 17Next Earn

Total Valuation

USD

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A carries a market capitalization of 13.58B, placing it among publicly traded companies globally. Its enterprise value stands at 11.96B, reflecting the total theoretical takeover cost after accounting for cash holdings and debt obligations.

Market Cap13.58B
Enterprise Value11.96B

Important Dates

Tencent Music Entertainment Group Sponsored ADR 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 Sponsored ADR Class A has 1.62B shares outstanding.

Shares Outstanding1.62B

Valuation Ratios

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A trades at a trailing price-to-earnings ratio of 9.80. The price-to-sales ratio is 2.57, and the price-to-book ratio stands at 1.18.

PE Ratio9.80
PS Ratio2.57
PB Ratio1.18
P/TBV Ratio2.28
P/FCF Ratio7.84
P/OCF Ratio7.75

Enterprise Valuation

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A trades at an EV/EBITDA multiple of 7.23 - 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 2.39 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 7.23 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. Tencent Music Entertainment Group Sponsored ADR Class A trades at an EV/FCF ratio of 7.13, 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 11.96B versus a market cap of 13.58B, with the gap driven by net debt and cash on the balance sheet.

EV / Sales2.39
EV / EBITDA7.23
EV / EBIT7.23
EV / FCF7.13

Financial Position

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR 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

USD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Sponsored ADR 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 892,177.95 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 Sponsored ADR 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 Employee892,177.95
Employee Count5,605.75
Inventory Turnover290.66

Taxes

USD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A recorded 285.06M 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 1.64B, leaving 1.31B in net income after tax - the gap is what shifts in the tax rate do to reported earnings and EPS.

Income Tax285.06M
Effective Tax Rate17.39

Stock Price Statistics

USD

As of the close on October 22, 2026, Tencent Music Entertainment Group Sponsored ADR Class A's stock has declined approximately 62.21% over the past 52 weeks. The 50-day moving average sits at 8.32, while the 200-day moving average is 10.65.

52-Week Price Change-62.21%
50-Day Moving Average8.32
200-Day Moving Average10.65

Income Statement

USD

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A generated 5.00B in revenue and converted that into 1.31B in net income, yielding earnings per share of 0.87. EBITDA reached 1.66B, while operating income came in at 1.49B.

Revenue5.00B
Gross Profit2.22B
Operating Income1.49B
Pretax Income1.64B
Net Income1.31B
EBITDA1.66B
EBIT1.66B
Earnings Per Share (EPS)0.87

Balance Sheet

USD

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A holds 4.52B in cash and equivalents against 2.49B in total debt, resulting in a net debt position of -1.06B. Total book value stands at 11.54B, with working capital of 2.50B providing operational flexibility.

Cash & Cash Equivalents4.52B
Total Debt2.49B
Net Debt-1.06B
Equity (Book Value)11.54B
Book Value Per Share7.12
Working Capital2.50B

Cash Flow

USD

Tencent Music Entertainment Group Sponsored ADR Class A produced 1.66B in operating cash flow over the twelve months ended June 30, 2026.

Operating Cash Flow1.66B
Free Cash Flow1.66B
FCF Per Share1.08

Margins

Over the twelve months ended June 30, 2026, Tencent Music Entertainment Group Sponsored ADR 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 12.76, 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 -5.57, meaning Tencent Music Entertainment Group Sponsored ADR Class A raised more capital through share issuance and new debt than it returned via dividends and buybacks.

Shareholder Yield-5.57
FCF Yield12.76

Scores

As of June 30, 2026, Tencent Music Entertainment Group Sponsored ADR Class A has an Altman Z-Score of 3.20, well above the 3.0 threshold that indicates strong financial health and minimal bankruptcy risk.

Altman Z-Score3.20