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Tencent Music Entertainment GroupTME +0.24%70 Shiller PE Ratio is 22.41 as of Sep. 02, 2026, which is 48% below its 10-year median of 42.84. GuruFocus rates TME with a GF Scoreâ„¢ of 70/100 and a GF Valueâ„¢ of $15.45 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 195 Interactive Media companies, Tencent Music Entertainment Group ranks worse than 53.33% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's Shiller PE Ratio or its related term are showing as below:
TME'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 21.99 Med: 42.84 Max: 48.27
Current: 22.41
During the past 10 years, Tencent Music Entertainment Group's highest Shiller PE Ratio was 48.27. The lowest was 21.99. And the median was 42.84.
TME's Shiller PE Ratio is ranked worse than 53.33% of 195
companies
in the Interactive Media industry
Industry Median: 20.35
vs TME: 22.41
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Tencent Music Entertainment Group's adjusted earnings per share data of for the fiscal year that ended in Dec25 was $1.011. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.37 for the trailing ten years ended in Dec25.
Shiller PE for Stocks: The True Measure of Stock Valuation
Tencent Music Entertainment Group (NYSE:TME) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Tencent Music Entertainment Group Shiller PE Ratio Related Terms
Tencent Music Entertainment Group Shiller PE Ratio 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 Shiller PE Ratio Chart
TME vs PINS, MTCH, SNAP: Shiller PE Ratio Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Shiller PE Ratio falls into.
Tencent Music Entertainment Group Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Tencent Music Entertainment Group (TME) has a Shiller PE Ratio of 22.41 as of Sep. 02, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Tencent Music Entertainment Group and its competitors. This is 48% below median its historical median of 42.84. Over the past decade, Tencent Music Entertainment Group's Shiller PE Ratio has ranged from 21.99 to 48.27. According to the industry distribution chart, Tencent Music Entertainment Group ranks #104 out of 195 companies in the Interactive Media industry, placing it in the top 53.3%.
Is Tencent Music Entertainment Group's Shiller PE Ratio too high?
Tencent Music Entertainment Group's current Shiller PE Ratio of 22.41 is 48% below median its 10-year median of 42.84. Over the past 10 years, this metric has ranged from a low of 21.99 to a high of 48.27. The Interactive Media industry median Shiller PE Ratio is 20.35. Tencent Music Entertainment Group's value of 22.41 is 10.1% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #104 out of 195 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Tencent Music Entertainment Group has a GF Scoreâ„¢ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's Shiller PE Ratio compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #104 out of 195 companies for Shiller PE Ratio. This places Tencent Music Entertainment Group in the lower half of its industry. The industry median Shiller PE Ratio is 20.35. Tencent Music Entertainment Group's value of 22.41 is 10.1% above this benchmark. Historically, Tencent Music Entertainment Group's own Shiller PE Ratio has ranged from 21.99 to 48.27 over the past decade. While the company's 10-year median is 42.84 vs. the industry median of 20.35, 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 Shiller PE Ratio for an Interactive Media company?
The median Shiller PE Ratio among Interactive Media companies is 20.35, based on 195 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Shiller PE Ratio of 22.41 is 10.1% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Shiller PE Ratio is 20.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Shiller PE Ratio is 22.41, which is 48% below median its own 10-year median of 42.84. 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 $15.45, compared to a current price of $8.29 — trading 46.3% below its estimated fair value. The current Shiller PE Ratio is 22.41, which is 48% below median its 10-year median of 42.84 and 10.1% above the Interactive Media industry median of 20.35. Tencent Music Entertainment Group's overall GF Score™ is 70/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current Shiller PE Ratio is 22.41 as of Sep. 02, 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 $8.29 is trading 46.3% below its estimated GF Value™ of $15.45.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
Shiller PE Ratio: 22.41 (48% below median its 10-year median of 42.84)
GF Value™: $15.45 vs. price of $8.29 (46.3% below fair value)
Industry Position: 10.1% above the Interactive Media median (#104 of 195)
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 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.
70GF Score
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