* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
MEX:TMEN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.15 Med: 1.19 Max: 1.86
Current: 0.42
During the past 10 years, Tencent Music Entertainment Group's highest PEG Ratio was 1.86. The lowest was 0.15. And the median was 1.19.
MEX:TMEN's PEG Ratio is ranked better than 77.14% of 105
companies
in the Interactive Media industry
Industry Median: 1.04
vs MEX:TMEN: 0.42
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Tencent Music Entertainment Group (MEX:TMEN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Tencent Music Entertainment Group PEG Ratio Related Terms
Tencent Music Entertainment Group PEG Ratio 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.
MEX:TMEN vs PINS, SNAP, MTCH: PEG Ratio Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's PEG Ratio falls into.
* 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: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Tencent Music Entertainment Group (MEX:TMEN) has a PEG Ratio of 0.41 as of Jun. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Tencent Music Entertainment Group and its competitors. This is 66% below median its historical median of 1.19. Over the past decade, Tencent Music Entertainment Group's PEG Ratio has ranged from 0.15 to 1.86. According to the industry distribution chart, Tencent Music Entertainment Group ranks #24 out of 105 companies in the Interactive Media industry, placing it in the top 22.9%.
Is Tencent Music Entertainment Group's PEG Ratio too high?
Tencent Music Entertainment Group's current PEG Ratio of 0.41 is 66% below median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 1.86. The Interactive Media industry median PEG Ratio is 1.04. Tencent Music Entertainment Group's value of 0.41 is 60.6% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #24 out of 105 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. 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 PEG Ratio compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #24 out of 105 companies for PEG Ratio. This places Tencent Music Entertainment Group in the top 23% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.04. Tencent Music Entertainment Group's value of 0.41 is 60.6% below this benchmark. Historically, Tencent Music Entertainment Group's own PEG Ratio has ranged from 0.15 to 1.86 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 1.04, 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 PEG Ratio for an Interactive Media company?
The median PEG Ratio among Interactive Media companies is 1.04, based on 105 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current PEG Ratio of 0.41 is 60.6% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median PEG Ratio is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current PEG Ratio is 0.41, which is 66% below median its own 10-year median of 1.19. 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 PEG Ratio is 0.41, which is 66% below median its 10-year median of 1.19 and 60.6% below the Interactive Media industry median of 1.04. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current PEG Ratio is 0.41 as of Jun. 25, 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:
PEG Ratio: 0.41 (66% below median its 10-year median of 1.19)
GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
Industry Position: 60.6% below the Interactive Media median (#24 of 105)
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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