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Tencent Music Entertainment GroupTME -2.37%75 Return-on-Tangible-Asset is 11.19% as of Mar. 2026, which is 8% above its 10-year median of 10.34. GuruFocus rates TME with a GF Score™ of 75/100 and a GF Value™ of $15.42 (Significantly Undervalued). Among 567 Interactive Media companies, Tencent Music Entertainment Group ranks better than 79.19% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's Return-on-Tangible-Asset or its related term are showing as below:
TME'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.42 Med: 10.34 Max: 15.68
Current: 11.52
During the past 10 years, Tencent Music Entertainment Group's highest Return-on-Tangible-Asset was 15.68%. The lowest was 1.42%. And the median was 10.34%.
TME's Return-on-Tangible-Asset is ranked better than 79.19% of 567
companies
in the Interactive Media industry
Industry Median: 0.78
vs TME: 11.52
Tencent Music Entertainment Group (NYSE:TME) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Tencent Music Entertainment Group Return-on-Tangible-Asset Related Terms
Tencent Music Entertainment Group Return-on-Tangible-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 Return-on-Tangible-Asset Chart
TME vs PINS, MTCH, SNAP: Return-on-Tangible-Asset Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.19% mean?
Tencent Music Entertainment Group (TME) has a Return-on-Tangible-Asset of 11.19% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tencent Music Entertainment Group and its competitors. This is near median its historical median of 10.34. Over the past decade, Tencent Music Entertainment Group's Return-on-Tangible-Asset has ranged from 1.42 to 15.68. According to the industry distribution chart, Tencent Music Entertainment Group ranks #118 out of 567 companies in the Interactive Media industry, placing it in the top 20.8%.
Is Tencent Music Entertainment Group's Return-on-Tangible-Asset too high?
Tencent Music Entertainment Group's current Return-on-Tangible-Asset of 11.19% is near median its 10-year median of 10.34. Over the past 10 years, this metric has ranged from a low of 1.42 to a high of 15.68. The Interactive Media industry median Return-on-Tangible-Asset is 0.78. Tencent Music Entertainment Group's value of 11.19% is 1334.6% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #118 out of 567 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 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's Return-on-Tangible-Asset compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #118 out of 567 companies for Return-on-Tangible-Asset. This places Tencent Music Entertainment Group in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.78. Tencent Music Entertainment Group's value of 11.19% is 1334.6% above this benchmark. Historically, Tencent Music Entertainment Group's own Return-on-Tangible-Asset has ranged from 1.42 to 15.68 over the past decade. While the company's 10-year median is 10.34 vs. the industry median of 0.78, 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 Return-on-Tangible-Asset for an Interactive Media company?
The median Return-on-Tangible-Asset among Interactive Media companies is 0.78, based on 567 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Return-on-Tangible-Asset of 11.19% is 1334.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Asset is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Return-on-Tangible-Asset is 11.19%, which is near median its own 10-year median of 10.34. 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 $15.42, compared to a current price of $9.48 — trading 38.5% below its estimated fair value. The current Return-on-Tangible-Asset is 11.19%, which is near median its 10-year median of 10.34 and 1334.6% above the Interactive Media industry median of 0.78. Tencent Music Entertainment Group's overall GF Score™ is 75/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current Return-on-Tangible-Asset is 11.19% 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 $9.48 is trading 38.5% below its estimated GF Value™ of $15.42.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
Return-on-Tangible-Asset: 11.19% (near median its 10-year median of 10.34)
GF Value™: $15.42 vs. price of $9.48 (38.5% below fair value)
Industry Position: 1334.6% above the Interactive Media median (#118 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 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.
75GF Score
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