Tencent Music Entertainment Group (MEX:TMEN) EV-to-EBIT: 6.93 (As of Aug. 10, 2026) — 57% Below Median

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MEX:TMEN Tencent Music Entertainment Group MEX:TMEN
78 GF Score
Price MXN151.75
GF Value MXN279.55
Valuation Significantly Undervalued
View Full Analysis

What is Tencent Music Entertainment Group EV-to-EBIT?

Tencent Music Entertainment Group MEX:TMEN 78 EV-to-EBIT is 6.93 as of Aug. 10, 2026, which is 57% below its 10-year median of 16.26. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN279.55 (Significantly Undervalued). Among 330 Interactive Media companies, Tencent Music Entertainment Group ranks better than 55.15% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Tencent Music Entertainment Group's Enterprise Value is MXN200,939 Mil. Tencent Music Entertainment Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was MXN28,988 Mil. Therefore, Tencent Music Entertainment Group's EV-to-EBIT for today is 6.93.

The historical rank and industry rank for Tencent Music Entertainment Group's EV-to-EBIT or its related term are showing as below:

MEX:TMEN' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.9   Med: 16.26   Max: 81.93
Current: 8.1

During the past 10 years, the highest EV-to-EBIT of Tencent Music Entertainment Group was 81.93. The lowest was 5.90. And the median was 16.26.

MEX:TMEN's EV-to-EBIT is ranked better than
55.15% of 330 companies
in the Interactive Media industry
Industry Median: 9.215 vs MEX:TMEN: 8.10

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Tencent Music Entertainment Group's Enterprise Value for the quarter that ended in Mar. 2026 was MXN213,434 Mil. Tencent Music Entertainment Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was MXN28,988 Mil. Tencent Music Entertainment Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.58%.


Tencent Music Entertainment Group  (MEX:TMEN) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

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

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=28987.603/213434.329
=13.58 %

Tencent Music Entertainment Group's Enterprise Value for the quarter that ended in Mar. 2026 was MXN213,434 Mil.
Tencent Music Entertainment Group's 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.


Tencent Music Entertainment Group EV-to-EBIT Related Terms


Tencent Music Entertainment Group EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Tencent Music Entertainment Group's EV-to-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 EV-to-EBIT Chart

Tencent Music Entertainment Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.89 18.98 14.99 12.23 12.96

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
EV-to-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 12.07 16.23 18.78 12.96 7.33

MEX:TMEN vs PINS, MTCH, SNAP: EV-to-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
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tencent Music Entertainment Group EV-to-EBIT Calculation

Tencent Music Entertainment Group's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=200938.593/28987.603
=6.93

Tencent Music Entertainment Group's current Enterprise Value is MXN200,939 Mil.
Tencent Music Entertainment Group's 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 EV-to-EBIT →
What does a EV-to-EBIT of 6.93 mean?
Tencent Music Entertainment Group (MEX:TMEN) has a EV-to-EBIT of 6.93 as of Aug. 10, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tencent Music Entertainment Group and its competitors. This is 57% below median its historical median of 16.26. Over the past decade, Tencent Music Entertainment Group's EV-to-EBIT has ranged from 5.90 to 81.93. According to the industry distribution chart, Tencent Music Entertainment Group ranks #148 out of 330 companies in the Interactive Media industry, placing it in the top 44.8%.
Is Tencent Music Entertainment Group's EV-to-EBIT too high?
Tencent Music Entertainment Group's current EV-to-EBIT of 6.93 is 57% below median its 10-year median of 16.26. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 81.93. The Interactive Media industry median EV-to-EBIT is 9.22. Tencent Music Entertainment Group's value of 6.93 is 24.8% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #148 out of 330 companies in the Interactive Media industry, which is above the industry midpoint. 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 EV-to-EBIT compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #148 out of 330 companies for EV-to-EBIT. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median EV-to-EBIT is 9.22. Tencent Music Entertainment Group's value of 6.93 is 24.8% below this benchmark. Historically, Tencent Music Entertainment Group's own EV-to-EBIT has ranged from 5.90 to 81.93 over the past decade. While the company's 10-year median is 16.26 vs. the industry median of 9.22, 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 EV-to-EBIT for an Interactive Media company?
The median EV-to-EBIT among Interactive Media companies is 9.22, based on 330 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current EV-to-EBIT of 6.93 is 24.8% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median EV-to-EBIT is 9.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current EV-to-EBIT is 6.93, which is 57% below median its own 10-year median of 16.26. 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 MXN279.55, compared to a current price of MXN151.75 — trading 45.7% below its estimated fair value. The current EV-to-EBIT is 6.93, which is 57% below median its 10-year median of 16.26 and 24.8% below the Interactive Media industry median of 9.22. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current EV-to-EBIT is 6.93 as of Aug. 10, 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 MXN151.75 is trading 45.7% below its estimated GF Value™ of MXN279.55. GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.

Key valuation signals for MEX:TMEN:

  • EV-to-EBIT: 6.93 (57% below median its 10-year median of 16.26)
  • GF Value™: MXN279.55 vs. price of MXN151.75 (45.7% below fair value)
  • GF Score™: 78/100
  • Industry Position: 24.8% below the Interactive Media median (#148 of 330)

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

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

MXN151.75
Price
MXN279.55
GF Value