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What is Tencent Music Entertainment Group Debt-to-EBITDA?
Tencent Music Entertainment GroupTME -2.37%75 Debt-to-EBITDA is 0.46 as of Mar. 2026, which is 45% below its 10-year median of 0.84. GuruFocus rates TME with a GF Score™ of 75/100 and a GF Value™ of $15.42 (Significantly Undervalued). Among 305 Interactive Media companies, Tencent Music Entertainment Group ranks better than 55.41% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Tencent Music Entertainment Group's Debt-to-EBITDA or its related term are showing as below:
TME'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03 Med: 0.84 Max: 1.13
Current: 0.44
During the past 10 years, the highest Debt-to-EBITDA Ratio of Tencent Music Entertainment Group was 1.13. The lowest was 0.03. And the median was 0.84.
TME's Debt-to-EBITDA is ranked better than 55.41% of 305
companies
in the Interactive Media industry
Industry Median: 0.67
vs TME: 0.44
Tencent Music Entertainment Group (NYSE:TME) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Tencent Music Entertainment Group Debt-to-EBITDA Related Terms
Tencent Music Entertainment Group Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tencent Music Entertainment Group Debt-to-EBITDA Chart
TME vs PINS, MTCH, SNAP: Debt-to-EBITDA Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tencent Music Entertainment Group Debt-to-EBITDA vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Tencent Music Entertainment Group (TME) has a Debt-to-EBITDA of 0.46 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tencent Music Entertainment Group. This is 45% below median its historical median of 0.84. Over the past decade, Tencent Music Entertainment Group's Debt-to-EBITDA has ranged from 0.03 to 1.13. According to the industry distribution chart, Tencent Music Entertainment Group ranks #136 out of 305 companies in the Interactive Media industry, placing it in the top 44.6%.
Is Tencent Music Entertainment Group's Debt-to-EBITDA too high?
Tencent Music Entertainment Group's current Debt-to-EBITDA of 0.46 is 45% below median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 1.13. The Interactive Media industry median Debt-to-EBITDA is 0.67. Tencent Music Entertainment Group's value of 0.46 is 31.3% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #136 out of 305 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Tencent Music Entertainment Group has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's Debt-to-EBITDA compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #136 out of 305 companies for Debt-to-EBITDA. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median Debt-to-EBITDA is 0.67. Tencent Music Entertainment Group's value of 0.46 is 31.3% below this benchmark. Historically, Tencent Music Entertainment Group's own Debt-to-EBITDA has ranged from 0.03 to 1.13 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 0.67, Tencent Music Entertainment Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Interactive Media company?
The median Debt-to-EBITDA among Interactive Media companies is 0.67, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Debt-to-EBITDA of 0.46 is 31.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Tencent Music Entertainment Group. For the Interactive Media industry, the median Debt-to-EBITDA is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Debt-to-EBITDA is 0.46, which is 45% below median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tencent Music Entertainment Group stock overvalued right now?
Based on GuruFocus' analysis, Tencent Music Entertainment Group (TME) is currently considered Significantly Undervalued. The stock's GF Value™ is $15.42, compared to a current price of $9.48 — trading 38.5% below its estimated fair value. The current Debt-to-EBITDA is 0.46, which is 45% below median its 10-year median of 0.84 and 31.3% below the Interactive Media industry median of 0.67. Tencent Music Entertainment Group's overall GF Score™ is 75/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current Debt-to-EBITDA is 0.46 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tencent Music Entertainment Group (TME) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued.
The current stock price of $9.48 is trading 38.5% below its estimated GF Value™ of $15.42.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
Debt-to-EBITDA: 0.46 (45% below median its 10-year median of 0.84)
GF Value™: $15.42 vs. price of $9.48 (38.5% below fair value)
Industry Position: 31.3% below the Interactive Media median (#136 of 305)
No single metric tells the full story. See the TME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tencent Music Entertainment Group Business Description
Tencent Music is the largest online music streaming platform in China, established in 2016 through the merger of QQ Music, Kuwo Music, and Kugou Music. Tencent, its largest shareholder, holds over 50% of the shares and more than 90% of the voting rights. Beyond streaming services, Tencent Music generates revenue through a diverse range of offerings, including podcasts, livestreaming, concerts, and karaoke.
75GF Score
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