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What is Tencent Music Entertainment Group EV-to-FCF?
Tencent Music Entertainment GroupSTU:63T +1.47%72 EV-to-FCF is 9.43 as of Jul. 30, 2026, which is 36% below its 10-year median of 14.83. GuruFocus rates STU:63T with a GF Score™ of 72/100 and a GF Value™ of €6.49 (Significantly Undervalued). Among 338 Interactive Media companies, Tencent Music Entertainment Group ranks better than 52.07% on this metric.
STU:63T'
s EV-to-FCF Range Over the Past 10 Years
Min: 4.75 Med: 14.83 Max: 67.41
Current: 9.22
During the past 10 years, the highest EV-to-FCF of Tencent Music Entertainment Group was 67.41. The lowest was 4.75. And the median was 14.83.
STU:63T's EV-to-FCF is ranked better than 52.07% of 338
companies
in the Interactive Media industry
Industry Median: 10.155
vs STU:63T: 9.22
EV-to-FCF 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 (STU:63T) EV-to-FCF Explanation
EV-to-FCF 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 €4.084.
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 €0.347.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Tencent Music Entertainment Group EV-to-FCF Related Terms
Tencent Music Entertainment Group EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's EV-to-FCF falls into.
Tencent Music Entertainment Group's current Enterprise Value is €11,518 Mil.
Tencent Music Entertainment Group's Free Cash Flow 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 €1,221 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 (STU:63T) has a EV-to-FCF of 9.43 as of Jul. 30, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tencent Music Entertainment Group and its competitors. This is 36% below median its historical median of 14.83. Over the past decade, Tencent Music Entertainment Group's EV-to-FCF has ranged from 4.75 to 67.41. According to the industry distribution chart, Tencent Music Entertainment Group ranks #162 out of 338 companies in the Interactive Media industry, placing it in the top 47.9%.
Is Tencent Music Entertainment Group's EV-to-FCF too high?
Tencent Music Entertainment Group's current EV-to-FCF of 9.43 is 36% below median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 4.75 to a high of 67.41. The Interactive Media industry median EV-to-FCF is 10.16. Tencent Music Entertainment Group's value of 9.43 is 7.1% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #162 out of 338 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Tencent Music Entertainment Group has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's EV-to-FCF compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #162 out of 338 companies for EV-to-FCF. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median EV-to-FCF is 10.16. Tencent Music Entertainment Group's value of 9.43 is 7.1% below this benchmark. Historically, Tencent Music Entertainment Group's own EV-to-FCF has ranged from 4.75 to 67.41 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 10.16, 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-FCF for an Interactive Media company?
The median EV-to-FCF among Interactive Media companies is 10.16, based on 338 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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-FCF of 9.43 is 7.1% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median EV-to-FCF is 10.16 — 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-FCF is 9.43, which is 36% below median its own 10-year median of 14.83. 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 (STU:63T) is currently considered Significantly Undervalued. The stock's GF Value™ is €6.49, compared to a current price of €4.08 — trading 37.1% below its estimated fair value. The current EV-to-FCF is 9.43, which is 36% below median its 10-year median of 14.83 and 7.1% below the Interactive Media industry median of 10.16. Tencent Music Entertainment Group's overall GF Score™ is 72/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Tencent Music Entertainment Group (STU:63T), the current EV-to-FCF is 9.43 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 (STU:63T) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued.
The current stock price of €4.08 is trading 37.1% below its estimated GF Value™ of €6.49.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for STU:63T:
EV-to-FCF: 9.43 (36% below median its 10-year median of 14.83)
GF Value™: €6.49 vs. price of €4.08 (37.1% below fair value)
Industry Position: 7.1% below the Interactive Media median (#162 of 338)
No single metric tells the full story. See the STU:63T 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.
72GF Score
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