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What is Tencent Music Entertainment Group Debt-to-Equity?
Tencent Music Entertainment GroupTME -2.27%75 Debt-to-Equity is 0.07 as of Mar. 2026, which is 30% below its 10-year median of 0.10. GuruFocus rates TME with a GF Score™ of 75/100 and a GF Value™ of $15.42 (Significantly Undervalued). Among 411 Interactive Media companies, Tencent Music Entertainment Group ranks better than 61.07% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Tencent Music Entertainment Group's Debt-to-Equity or its related term are showing as below:
TME'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.1 Max: 0.13
Current: 0.07
During the past 10 years, the highest Debt-to-Equity Ratio of Tencent Music Entertainment Group was 0.13. The lowest was 0.00. And the median was 0.10.
TME's Debt-to-Equity is ranked better than 61.07% of 411
companies
in the Interactive Media industry
Industry Median: 0.13
vs TME: 0.07
Tencent Music Entertainment Group (NYSE:TME) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Tencent Music Entertainment Group Debt-to-Equity Related Terms
Tencent Music Entertainment Group Debt-to-Equity 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-Equity Chart
TME vs PINS, MTCH, SNAP: Debt-to-Equity Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Debt-to-Equity 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.
Tencent Music Entertainment Group (TME) has a Debt-to-Equity of 0.07 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Tencent Music Entertainment Group and its competitors. This is 30% below median its historical median of 0.10. According to the industry distribution chart, Tencent Music Entertainment Group ranks #160 out of 411 companies in the Interactive Media industry, placing it in the top 38.9%.
Is Tencent Music Entertainment Group's Debt-to-Equity too high?
Tencent Music Entertainment Group's current Debt-to-Equity of 0.07 is 30% below median its 10-year median of 0.10. The Interactive Media industry median Debt-to-Equity is 0.13. Tencent Music Entertainment Group's value of 0.07 is 46.2% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #160 out of 411 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-Equity compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #160 out of 411 companies for Debt-to-Equity. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median Debt-to-Equity is 0.13. Tencent Music Entertainment Group's value of 0.07 is 46.2% below this benchmark. While the company's 10-year median is 0.10 vs. the industry median of 0.13, 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-Equity for an Interactive Media company?
The median Debt-to-Equity among Interactive Media companies is 0.13, based on 411 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity 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-Equity of 0.07 is 46.2% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Debt-to-Equity is 0.13 — 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-Equity is 0.07, which is 30% below median its own 10-year median of 0.10. 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 $9.49 — trading 38.5% below its estimated fair value. The current Debt-to-Equity is 0.07, which is 30% below median its 10-year median of 0.10 and 46.2% below the Interactive Media industry median of 0.13. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current Debt-to-Equity is 0.07 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 $9.49 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-Equity: 0.07 (30% below median its 10-year median of 0.10)
GF Value™: $15.42 vs. price of $9.49 (38.5% below fair value)
Industry Position: 46.2% below the Interactive Media median (#160 of 411)
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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