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Tencent Music Entertainment GroupSTU:63T +1.47%72 ROC (Joel Greenblatt) % is 701.53% as of Mar. 2026, which is 28% below its 10-year median of 973.52. GuruFocus rates STU:63T with a GF Score™ of 72/100 and a GF Value™ of €6.49 (Significantly Undervalued). Among 549 Interactive Media companies, Tencent Music Entertainment Group ranks better than 93.44% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Tencent Music Entertainment Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 701.53%.
The historical rank and industry rank for Tencent Music Entertainment Group's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:63T'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 86.12 Med: 973.52 Max: 1849.97
Current: 813.89
During the past 10 years, Tencent Music Entertainment Group's highest ROC (Joel Greenblatt) % was 1849.97%. The lowest was 86.12%. And the median was 973.52%.
STU:63T's ROC (Joel Greenblatt) % is ranked better than 93.44% of 549
companies
in the Interactive Media industry
Industry Median: 16.47
vs STU:63T: 813.89
Tencent Music Entertainment Group (STU:63T) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
STU:63T vs PINS, MTCH, SNAP: ROC (Joel Greenblatt) % Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's ROC (Joel Greenblatt) % falls into.
Tencent Music Entertainment Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 701.53% mean?
Tencent Music Entertainment Group (STU:63T) has a ROC (Joel Greenblatt) % of 701.53% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tencent Music Entertainment Group and its competitors. This is 28% below median its historical median of 973.52. Over the past decade, Tencent Music Entertainment Group's ROC (Joel Greenblatt) % has ranged from 86.12 to 1,849.97. According to the industry distribution chart, Tencent Music Entertainment Group ranks #36 out of 549 companies in the Interactive Media industry, placing it in the top 6.6%.
Is Tencent Music Entertainment Group's ROC (Joel Greenblatt) % too high?
Tencent Music Entertainment Group's current ROC (Joel Greenblatt) % of 701.53% is 28% below median its 10-year median of 973.52. Over the past 10 years, this metric has ranged from a low of 86.12 to a high of 1,849.97. The Interactive Media industry median ROC (Joel Greenblatt) % is 16.47. Tencent Music Entertainment Group's value of 701.53% is 4159.4% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #36 out of 549 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 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's ROC (Joel Greenblatt) % compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #36 out of 549 companies for ROC (Joel Greenblatt) %. This places Tencent Music Entertainment Group in the top 7% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 16.47. Tencent Music Entertainment Group's value of 701.53% is 4159.4% above this benchmark. Historically, Tencent Music Entertainment Group's own ROC (Joel Greenblatt) % has ranged from 86.12 to 1,849.97 over the past decade. While the company's 10-year median is 973.52 vs. the industry median of 16.47, 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 ROC (Joel Greenblatt) % for an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 16.47, based on 549 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current ROC (Joel Greenblatt) % of 701.53% is 4159.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 16.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current ROC (Joel Greenblatt) % is 701.53%, which is 28% below median its own 10-year median of 973.52. 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 (STU:63T) is currently considered Significantly Undervalued. The stock's GF Value™ is €6.49, compared to a current price of €4.08 — trading 37.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 701.53%, which is 28% below median its 10-year median of 973.52 and 4159.4% above the Interactive Media industry median of 16.47. Tencent Music Entertainment Group's overall GF Score™ is 72/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Tencent Music Entertainment Group (STU:63T), the current ROC (Joel Greenblatt) % is 701.53% 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 (STU:63T) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued.
The current stock price of €4.08 is trading 37.1% below its estimated GF Value™ of €6.49.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for STU:63T:
ROC (Joel Greenblatt) %: 701.53% (28% below median its 10-year median of 973.52)
GF Value™: €6.49 vs. price of €4.08 (37.1% below fair value)
Industry Position: 4159.4% above the Interactive Media median (#36 of 549)
No single metric tells the full story. See the STU:63T 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.
72GF Score
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