Tencent Music Entertainment GroupMEX:TMEN -4.08%78 Interest Coverage is 50.76 as of Mar. 2026, which is 15% below its 10-year median of 59.86. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN270.92 (Significantly Undervalued). Among 316 Interactive Media companies, Tencent Music Entertainment Group ranks better than 60.13% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tencent Music Entertainment Group's
Operating Income
for the
three
months ended in Mar. 2026 was MXN6,109 Mil. Tencent Music Entertainment Group's Interest Expense for the
three
months ended in Mar. 2026 was MXN-120 Mil.
Tencent Music Entertainment Group's interest coverage for the quarter that ended in Mar. 2026 was 50.76.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Tencent Music Entertainment Group has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Tencent Music Entertainment Group's Interest Coverage or its related term are showing as below:
MEX:TMEN'
s Interest Coverage Range Over the Past 10 Years
Min: 25.92 Med: 59.86 Max: No Debt
Current: 69.37
MEX:TMEN's Interest Coverage is ranked better than 60.13% of 316
companies
in the Interactive Media industry
Industry Median: 38.305
vs MEX:TMEN: 69.37
Tencent Music Entertainment Group (MEX:TMEN) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tencent Music Entertainment Group Interest Coverage Related Terms
Tencent Music Entertainment Group Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Tencent Music Entertainment Group Interest Coverage Chart
MEX:TMEN vs PINS, SNAP, MTCH: Interest Coverage Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Interest Coverage falls into.
Tencent Music Entertainment Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:TMEN) has a Interest Coverage of 50.76 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tencent Music Entertainment Group and its competitors. This is 15% below median its historical median of 59.86. Over the past decade, Tencent Music Entertainment Group's Interest Coverage has ranged from 25.92 to 10,000.00. According to the industry distribution chart, Tencent Music Entertainment Group ranks #126 out of 316 companies in the Interactive Media industry, placing it in the top 39.9%.
Is Tencent Music Entertainment Group's Interest Coverage too high?
Tencent Music Entertainment Group's current Interest Coverage of 50.76 is 15% below median its 10-year median of 59.86. Over the past 10 years, this metric has ranged from a low of 25.92 to a high of 10,000.00. The Interactive Media industry median Interest Coverage is 38.31. Tencent Music Entertainment Group's value of 50.76 is 32.5% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #126 out of 316 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 Interest Coverage compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #126 out of 316 companies for Interest Coverage. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median Interest Coverage is 38.31. Tencent Music Entertainment Group's value of 50.76 is 32.5% above this benchmark. Historically, Tencent Music Entertainment Group's own Interest Coverage has ranged from 25.92 to 10,000.00 over the past decade. While the company's 10-year median is 59.86 vs. the industry median of 38.31, 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 Interest Coverage for an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Interest Coverage of 50.76 is 32.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Interest Coverage is 50.76, which is 15% below median its own 10-year median of 59.86. 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 Interest Coverage is 50.76, which is 15% below median its 10-year median of 59.86 and 32.5% above the Interactive Media industry median of 38.31. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current Interest Coverage is 50.76 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:
Interest Coverage: 50.76 (15% below median its 10-year median of 59.86)
GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
Industry Position: 32.5% above the Interactive Media median (#126 of 316)
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
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
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