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What is Tencent Music Entertainment Group EV-to-OCF?
Tencent Music Entertainment GroupTME -2.21%75 EV-to-OCF is 8.98 as of Jul. 30, 2026, which is 37% below its 10-year median of 14.36. GuruFocus rates TME with a GF Score™ of 75/100 and a GF Value™ of $15.42 (Significantly Undervalued). Among 564 Interactive Media companies, Tencent Music Entertainment Group ranks worse than 68.62% on this metric.
TME'
s EV-to-OCF Range Over the Past 10 Years
Min: 4.23 Med: 14.36 Max: 67.41
Current: 8.98
During the past 10 years, the highest EV-to-OCF of Tencent Music Entertainment Group was 67.41. The lowest was 4.23. And the median was 14.36.
TME's EV-to-OCF is ranked worse than 68.62% of 564
companies
in the Interactive Media industry
Industry Median: 3.5
vs TME: 8.98
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Tencent Music Entertainment Group (NYSE:TME) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Tencent Music Entertainment Group's PE Ratio (TTM) for today is calculated as:
Tencent Music Entertainment Group's share price for today is $9.495.
Tencent Music Entertainment Group's Earnings per Share (Diluted) 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 $0.807.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Tencent Music Entertainment Group EV-to-OCF Related Terms
Tencent Music Entertainment Group EV-to-OCF 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.
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's EV-to-OCF falls into.
Tencent Music Entertainment Group's current Enterprise Value is $12,773 Mil.
Tencent Music Entertainment Group's Cash Flow from Operations 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 $1,423 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 (TME) has a EV-to-OCF of 8.98 as of Jul. 30, 2026. This is 37% below median its historical median of 14.36. Over the past decade, Tencent Music Entertainment Group's EV-to-OCF has ranged from 4.23 to 67.41. According to the industry distribution chart, Tencent Music Entertainment Group ranks #387 out of 564 companies in the Interactive Media industry, placing it in the top 68.6%.
Is Tencent Music Entertainment Group's EV-to-OCF too high?
Tencent Music Entertainment Group's current EV-to-OCF of 8.98 is 37% below median its 10-year median of 14.36. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 67.41. The Interactive Media industry median EV-to-OCF is 3.50. Tencent Music Entertainment Group's value of 8.98 is 156.6% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #387 out of 564 companies in the Interactive Media industry, which is below 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 EV-to-OCF compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #387 out of 564 companies for EV-to-OCF. This places Tencent Music Entertainment Group in the lower half of its industry. The industry median EV-to-OCF is 3.50. Tencent Music Entertainment Group's value of 8.98 is 156.6% above this benchmark. Historically, Tencent Music Entertainment Group's own EV-to-OCF has ranged from 4.23 to 67.41 over the past decade. While the company's 10-year median is 14.36 vs. the industry median of 3.50, Tencent Music Entertainment Group has consistently been above 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-OCF for an Interactive Media company?
The median EV-to-OCF among Interactive Media companies is 3.50, based on 564 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF 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-OCF of 8.98 is 156.6% above 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Interactive Media industry, the median EV-to-OCF is 3.50 — 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-OCF is 8.98, which is 37% below median its own 10-year median of 14.36. 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 $9.50 — trading 38.4% below its estimated fair value. The current EV-to-OCF is 8.98, which is 37% below median its 10-year median of 14.36 and 156.6% above the Interactive Media industry median of 3.50. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current EV-to-OCF is 8.98 as of Jul. 30, 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 $9.50 is trading 38.4% below its estimated GF Value™ of $15.42.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
EV-to-OCF: 8.98 (37% below median its 10-year median of 14.36)
GF Value™: $15.42 vs. price of $9.50 (38.4% below fair value)
Industry Position: 156.6% above the Interactive Media median (#387 of 564)
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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