Tencent Music Entertainment Group (MEX:TMEN) ROCE %: 12.49% (As of Mar. 2026)


MEX:TMEN Tencent Music Entertainment Group MEX:TMEN
78 GF Score
Price MXN145.80
GF Value MXN274.19
Valuation Significantly Undervalued
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What is Tencent Music Entertainment Group ROCE %?

Tencent Music Entertainment Group MEX:TMEN 78 ROCE % is 12.49% as of Mar. 2026. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN274.19 (Significantly Undervalued).

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tencent Music Entertainment Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 12.49%.

Tencent Music Entertainment Group  (MEX:TMEN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tencent Music Entertainment Group ROCE % Related Terms

Tencent Music Entertainment Group ROCE % Historical Data

* Premium members only.

The historical data trend for Tencent Music Entertainment Group's ROCE % can be seen below:

* 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 ROCE % Chart

Tencent Music Entertainment Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.69 7.44 9.60 13.96 15.70

Tencent Music Entertainment Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.17 13.54 11.86 12.62 12.49
MEX:TMEN
78GF Score
Tencent Music Entertainment Group MEX:TMEN
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tencent Music Entertainment Group ROCE % Calculation

Tencent Music Entertainment Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=34254.085/( ( (259078.513 - 47407.782) + (262093.988 - 37296.28) )/ 2 )
=34254.085/( (211670.731+224797.708)/ 2 )
=34254.085/218234.2195
=15.70 %

Tencent Music Entertainment Group's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=27629.504/( ( (262093.988 - 37296.28) + (261253.192 - 43487.69) )/ 2 )
=27629.504/( ( 224797.708 + 217765.502 )/ 2 )
=27629.504/221281.605
=12.49 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 12.49% mean?
Tencent Music Entertainment Group (MEX:TMEN) has a ROCE % of 12.49% as of Mar. 2026.
Is Tencent Music Entertainment Group's ROCE % too high?
Tencent Music Entertainment Group's current ROCE % is 12.49%. The Interactive Media industry median ROCE % is 3.15. Tencent Music Entertainment Group's value of 12.49% is 296.5% above this industry median. 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 ROCE % compare to PINS and SNAP?
Tencent Music Entertainment Group's ROCE % of 12.49% can be compared against companies in the Interactive Media industry. The industry median ROCE % is 3.15. Tencent Music Entertainment Group's value of 12.49% is 296.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Interactive Media company?
The median ROCE % among Interactive Media companies is 3.15, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current ROCE % of 12.49% is 296.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Interactive Media industry, the median ROCE % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current ROCE % is 12.49%. 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 MXN274.19, compared to a current price of MXN145.80 — trading 46.8% below its estimated fair value. The current ROCE % is 12.49% and 296.5% above the Interactive Media industry median of 3.15. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current ROCE % is 12.49% 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 46.8% below its estimated GF Value™ of MXN274.19. GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.

Key valuation signals for MEX:TMEN:

  • ROCE %: 12.49%
  • GF Value™: MXN274.19 vs. price of MXN145.80 (46.8% below fair value)
  • GF Score™: 78/100
  • Industry Position: 296.5% above the Interactive Media median

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

Address Kexing Science Park, Kejizhongsan Avenue, Unit 3, Building D, Hi-Tech Park, Nanshan District, Shenzhen, CHN, 518057
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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN145.80
Price
MXN274.19
GF Value