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Tencent Music Entertainment GroupTME +0.85%73 Equity-to-Asset is 0.75 as of Mar. 2026, which is 1% below its 10-year median of 0.76. GuruFocus rates TME with a GF Score™ of 73/100 and a GF Value™ of $15.46 (Significantly Undervalued). Among 567 Interactive Media companies, Tencent Music Entertainment Group ranks better than 66.31% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's Equity-to-Asset or its related term are showing as below:
TME'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.71 Med: 0.76 Max: 0.88
Current: 0.75
During the past 10 years, the highest Equity to Asset Ratio of Tencent Music Entertainment Group was 0.88. The lowest was 0.71. And the median was 0.76.
TME's Equity-to-Asset is ranked better than 66.31% of 567
companies
in the Interactive Media industry
Industry Median: 0.65
vs TME: 0.75
Tencent Music Entertainment Group (NYSE:TME) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Tencent Music Entertainment Group Equity-to-Asset Related Terms
Tencent Music Entertainment Group Equity-to-Asset 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 Equity-to-Asset Chart
TME vs PINS, MTCH, SNAP: Equity-to-Asset Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Equity-to-Asset falls into.
Tencent Music Entertainment Group Equity-to-Asset Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
* 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 Equity-to-Asset of 0.75 as of Mar. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Tencent Music Entertainment Group and its competitors. This is near median its historical median of 0.76. Over the past decade, Tencent Music Entertainment Group's Equity-to-Asset has ranged from 0.71 to 0.88. According to the industry distribution chart, Tencent Music Entertainment Group ranks #191 out of 567 companies in the Interactive Media industry, placing it in the top 33.7%.
Is Tencent Music Entertainment Group's Equity-to-Asset too high?
Tencent Music Entertainment Group's current Equity-to-Asset of 0.75 is near median its 10-year median of 0.76. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 0.88. The Interactive Media industry median Equity-to-Asset is 0.65. Tencent Music Entertainment Group's value of 0.75 is 15.4% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #191 out of 567 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Tencent Music Entertainment Group has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's Equity-to-Asset compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #191 out of 567 companies for Equity-to-Asset. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median Equity-to-Asset is 0.65. Tencent Music Entertainment Group's value of 0.75 is 15.4% above this benchmark. Historically, Tencent Music Entertainment Group's own Equity-to-Asset has ranged from 0.71 to 0.88 over the past decade. While the company's 10-year median is 0.76 vs. the industry median of 0.65, 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 Equity-to-Asset for an Interactive Media company?
The median Equity-to-Asset among Interactive Media companies is 0.65, based on 567 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Equity-to-Asset of 0.75 is 15.4% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Equity-to-Asset is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Equity-to-Asset is 0.75, which is near median its own 10-year median of 0.76. 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 $15.46, compared to a current price of $9.53 — trading 38.4% below its estimated fair value. The current Equity-to-Asset is 0.75, which is near median its 10-year median of 0.76 and 15.4% above the Interactive Media industry median of 0.65. Tencent Music Entertainment Group's overall GF Score™ is 73/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current Equity-to-Asset is 0.75 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 $9.53 is trading 38.4% below its estimated GF Value™ of $15.46.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
Equity-to-Asset: 0.75 (near median its 10-year median of 0.76)
GF Value™: $15.46 vs. price of $9.53 (38.4% below fair value)
Industry Position: 15.4% above the Interactive Media median (#191 of 567)
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 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.
73GF Score
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