Tencent Music Entertainment Group (MEX:TMEN) EBIT: MXN28,988 Mil (TTM As of Mar. 2026)


MEX:TMEN Tencent Music Entertainment Group MEX:TMEN
78 GF Score
Price MXN145.80
GF Value MXN270.92
Valuation Significantly Undervalued
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What is Tencent Music Entertainment Group EBIT?

Tencent Music Entertainment Group MEX:TMEN -4.08% 78 EBIT is MXN28,988 Mil as of Mar. 2026. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN270.92 (Significantly Undervalued).

Tencent Music Entertainment Group's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was MXN6,907 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was MXN28,988 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tencent Music Entertainment Group's annualized ROC % for the quarter that ended in Mar. 2026 was 10.89%. Tencent Music Entertainment Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 697.74%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Tencent Music Entertainment Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 15.19%.

Tencent Music Entertainment Group  (MEX:TMEN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Tencent Music Entertainment Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=24437.46 * ( 1 - 17.62% )/( (188991.849 + 180821.505)/ 2 )
=20131.579548/184906.677
=10.89 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=262093.988 - 27420.652 - ( 62163.023 - max(0, 37296.28 - 82977.767+62163.023))
=188991.849

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=261253.192 - 33215.584 - ( 69971.198 - max(0, 43487.69 - 90703.793+69971.198))
=180821.505

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Tencent Music Entertainment Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=27629.504/( ( (3804.021 + max(-19288.536, 0)) + (4115.645 + max(-22464.671, 0)) )/ 2 )
=27629.504/( ( 3804.021 + 4115.645 )/ 2 )
=27629.504/3959.833
=697.74 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9977.886 + 104.815 + 7628.493) - (27420.652 + 9579.077 + 0.0010000000038417)
=-19288.536

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10007.846 + 125.589 + 10599.16) - (33215.584 + 9981.682 + 0)
=-22464.671

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Tencent Music Entertainment Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=28987.603/190849.376
=15.19 %

* 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 EBIT Related Terms

Tencent Music Entertainment Group EBIT Historical Data

* Premium members only.

The historical data trend for Tencent Music Entertainment Group's EBIT can be seen below:

* 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 EBIT Chart

Tencent Music Entertainment Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12,084.30 12,550.46 14,665.44 25,310.89 34,254.09

Tencent Music Entertainment Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13,712.55 7,851.18 7,007.03 7,222.02 6,907.38

MEX:TMEN vs PINS, SNAP, MTCH: EBIT Comparison

For the Internet Content & Information subindustry, Tencent Music Entertainment Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Tencent Music Entertainment Group's EV-to-EBIT falls into.


MEX:TMEN
78GF Score
Tencent Music Entertainment Group MEX:TMEN
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Tencent Music Entertainment Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN28,988 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of MXN28,988 Mil mean?
Tencent Music Entertainment Group (MEX:TMEN) has a EBIT of MXN28,988 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Tencent Music Entertainment Group.
Is Tencent Music Entertainment Group's EBIT too high?
Tencent Music Entertainment Group's current EBIT is MXN28,988 Mil. Overall, Tencent Music Entertainment Group has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's EBIT compare to PINS and SNAP?
Tencent Music Entertainment Group's EBIT of MXN28,988 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Interactive Media company?
A good EBIT depends on the Interactive Media industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Tencent Music Entertainment Group. Tencent Music Entertainment Group's current EBIT is MXN28,988 Mil. 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 (MEX:TMEN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN270.92, compared to a current price of MXN145.80 — trading 46.2% below its estimated fair value. The current EBIT is MXN28,988 Mil. Tencent Music Entertainment Group's overall GF Score™ is 78/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current EBIT is MXN28,988 Mil 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 (MEX:TMEN) Overvalued in 2026?

Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued. The current stock price of MXN145.80 is trading 46.2% below its estimated GF Value™ of MXN270.92. GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.

Key valuation signals for MEX:TMEN:

  • EBIT: MXN28,988 Mil
  • GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
  • GF Score™: 78/100

No single metric tells the full story. See the MEX:TMEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tencent Music Entertainment Group Business Description

Address Kexing Science Park, Kejizhongsan Avenue, Unit 3, Building D, Hi-Tech Park, Nanshan District, Shenzhen, CHN, 518057
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.
78GF Score

Get the complete analysis for MEX:TMEN

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN145.80
Price
MXN270.92
GF Value