Tencent Music Entertainment GroupMEX:TMEN -4.08%78 Return-on-Tangible-Equity is 16.38% as of Mar. 2026, which is 1% above its 10-year median of 16.14. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN270.92 (Significantly Undervalued). Among 491 Interactive Media companies, Tencent Music Entertainment Group ranks better than 68.84% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TMEN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.87 Med: 16.14 Max: 24.37
Current: 16.63
During the past 10 years, Tencent Music Entertainment Group's highest Return-on-Tangible-Equity was 24.37%. The lowest was 2.87%. And the median was 16.14%.
MEX:TMEN's Return-on-Tangible-Equity is ranked better than 68.84% of 491
companies
in the Interactive Media industry
Industry Median: 5.93
vs MEX:TMEN: 16.63
Tencent Music Entertainment Group (MEX:TMEN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tencent Music Entertainment Group Return-on-Tangible-Equity Related Terms
Tencent Music Entertainment Group Return-on-Tangible-Equity 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-Equity Chart
MEX:TMEN vs PINS, SNAP, MTCH: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.38% mean?
Tencent Music Entertainment Group (MEX:TMEN) has a Return-on-Tangible-Equity of 16.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tencent Music Entertainment Group and its competitors. This is near median its historical median of 16.14. Over the past decade, Tencent Music Entertainment Group's Return-on-Tangible-Equity has ranged from 2.87 to 24.37. According to the industry distribution chart, Tencent Music Entertainment Group ranks #153 out of 491 companies in the Interactive Media industry, placing it in the top 31.2%.
Is Tencent Music Entertainment Group's Return-on-Tangible-Equity too high?
Tencent Music Entertainment Group's current Return-on-Tangible-Equity of 16.38% is near median its 10-year median of 16.14. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 24.37. The Interactive Media industry median Return-on-Tangible-Equity is 5.93. Tencent Music Entertainment Group's value of 16.38% is 176.2% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #153 out of 491 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 Return-on-Tangible-Equity compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #153 out of 491 companies for Return-on-Tangible-Equity. This puts Tencent Music Entertainment Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.93. Tencent Music Entertainment Group's value of 16.38% is 176.2% above this benchmark. Historically, Tencent Music Entertainment Group's own Return-on-Tangible-Equity has ranged from 2.87 to 24.37 over the past decade. While the company's 10-year median is 16.14 vs. the industry median of 5.93, 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-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.93, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 16.38% is 176.2% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.93 — 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-Equity is 16.38%, which is near median its own 10-year median of 16.14. 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 Return-on-Tangible-Equity is 16.38%, which is near median its 10-year median of 16.14 and 176.2% above the Interactive Media industry median of 5.93. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current Return-on-Tangible-Equity is 16.38% 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:
Return-on-Tangible-Equity: 16.38% (near median its 10-year median of 16.14)
GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
Industry Position: 176.2% above the Interactive Media median (#153 of 491)
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
Get the complete analysis for MEX:TMEN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:TMEN has been successfully added to your 
