Tencent Music Entertainment GroupMEX:TMEN 78 Pretax Margin % is 32.86% as of Mar. 2026, which is 110% above its 10-year median of 15.66. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN270.92 (Significantly Undervalued). Among 553 Interactive Media companies, Tencent Music Entertainment Group ranks better than 87.7% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's Pretax Margin % or its related term are showing as below:
MEX:TMEN'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.61 Med: 15.66 Max: 40.35
Current: 33
MEX:TMEN's Pretax Margin % is ranked better than 87.7% of 553
companies
in the Interactive Media industry
Industry Median: 2.23
vs MEX:TMEN: 33.00
Tencent Music Entertainment Group (MEX:TMEN) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Tencent Music Entertainment Group Pretax Margin % Related Terms
Tencent Music Entertainment Group Pretax Margin % 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 Pretax Margin % Chart
MEX:TMEN vs PINS, SNAP, MTCH: Pretax Margin % Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Pretax Margin % 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.
Tencent Music Entertainment Group (MEX:TMEN) has a Pretax Margin % of 32.86% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tencent Music Entertainment Group and its competitors. This is 110% above median its historical median of 15.66. Over the past decade, Tencent Music Entertainment Group's Pretax Margin % has ranged from 2.61 to 40.35. According to the industry distribution chart, Tencent Music Entertainment Group ranks #68 out of 553 companies in the Interactive Media industry, placing it in the top 12.3%.
Is Tencent Music Entertainment Group's Pretax Margin % too high?
Tencent Music Entertainment Group's current Pretax Margin % of 32.86% is 110% above median its 10-year median of 15.66. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 40.35. The Interactive Media industry median Pretax Margin % is 2.23. Tencent Music Entertainment Group's value of 32.86% is 1373.5% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #68 out of 553 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 Pretax Margin % compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #68 out of 553 companies for Pretax Margin %. This places Tencent Music Entertainment Group in the top 12% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.23. Tencent Music Entertainment Group's value of 32.86% is 1373.5% above this benchmark. Historically, Tencent Music Entertainment Group's own Pretax Margin % has ranged from 2.61 to 40.35 over the past decade. While the company's 10-year median is 15.66 vs. the industry median of 2.23, 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 Pretax Margin % for an Interactive Media company?
The median Pretax Margin % among Interactive Media companies is 2.23, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Pretax Margin % of 32.86% is 1373.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Pretax Margin % is 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Pretax Margin % is 32.86%, which is 110% above median its own 10-year median of 15.66. 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 Pretax Margin % is 32.86%, which is 110% above median its 10-year median of 15.66 and 1373.5% above the Interactive Media industry median of 2.23. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current Pretax Margin % is 32.86% 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:
Pretax Margin %: 32.86% (110% above median its 10-year median of 15.66)
GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
Industry Position: 1373.5% above the Interactive Media median (#68 of 553)
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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